We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Dingdong Cayman Limited | NYSE:DDL | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.03 | 1.99% | 1.54 | 1.56 | 1.50 | 1.50 | 176,228 | 21:25:48 |
☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021. |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
American depositary shares (two American depositary shares representing three Class A ordinary share, par value US$0.000002 per share) |
DDL |
New York Stock Exchange | ||
, par value US$0.000002 per share* |
New York Stock Exchange |
* |
for trading, but only in connection with the listing on the New York Stock Exchange of American depositary shares. |
Large accelerated filer |
☐ |
Accelerated filer |
☐ |
Non-accelerated filer | ☒ | |||||
Emerging growth company |
☐ |
U.S. GAAP ☒ |
International Financial Reporting Standards as issued |
Other ☐ | ||||||
by the International Accounting Standards Board |
☐ |
Page |
||||||
1 |
||||||
2 |
||||||
5 |
||||||
Item 1. |
5 |
|||||
Item 2. |
5 |
|||||
Item 3. |
5 |
|||||
Item 4. |
55 |
|||||
Item 4A. |
87 |
|||||
Item 5. |
87 |
|||||
Item 6. |
106 |
|||||
Item 7. |
116 |
|||||
Item 8. |
116 |
|||||
Item 9. |
117 |
|||||
Item 10. |
118 |
|||||
Item 11. |
136 |
|||||
Item 12. |
136 |
|||||
140 |
||||||
Item 13. |
140 |
|||||
Item 14. |
140 |
|||||
Item 15. |
140 |
|||||
Item 16A. |
141 |
|||||
Item 16B. |
142 |
|||||
Item 16C. |
142 |
|||||
Item 16D. |
142 |
|||||
Item 16E. |
142 |
|||||
Item 16F. |
143 |
|||||
Item 16G. |
143 |
|||||
Item 16H. |
144 |
|||||
Item 16I. |
144 |
|||||
145 |
||||||
Item 17. |
145 |
|||||
Item 18. |
145 |
|||||
Item 19. |
145 |
|||||
147 |
• | “ADRs” refers to the American depositary receipts that evidence the ADSs; |
• | “ADSs” refers to the American depositary shares, each two of which represent three Class A ordinary shares; |
• | “China” or the “PRC” refers to the People’s Republic of China, excluding, for the purposes of this annual report only, Hong Kong, Macau and Taiwan; |
• | “Class A ordinary shares” refers to our Class A ordinary shares with a par value of US$0.000002 per share; |
• | “Class B ordinary shares” refers to our Class B ordinary shares with a par value of US$0.000002 per share; |
• | “Dingdong,” “we,” “us,” “our company” and “our” refer to Dingdong (Cayman) Limited, a Cayman Islands exempted company, and its subsidiaries and their respective subsidiaries, as the context requires; |
• | “GMV” refers to gross merchandise value, which is the total value of all orders placed with us based on listed discounted prices of the ordered products. For the avoidance of doubt, the calculation of GMV does not take into consideration of discounts through coupons, and excludes shipping fees and orders that are returned, not delivered or not sold by all means; |
• | “MAU” refers to monthly active users, which is the sum of accounts that have accessed the Dingdong Fresh |
• | “ordinary shares” or “shares” refers to our Class A ordinary shares and Class B ordinary shares, par value US$0.000002 per share; |
• | “Renminbi” or “RMB” refers to the legal currency of China; |
• | “SEC” refers to the United States Securities and Exchange Commission. |
• | “transacting user” refers to a user account that paid for transactions of products on Dingdong Fresh |
• | “U.S. dollars” or “US$” refers to the legal currency of the United States. |
• | our goals and strategies; |
• | our future business development, financial conditions, and results of operations; |
• | the expected outlook of the fresh grocery e-commerce market in China; |
• | our expectations regarding demand for and market acceptance of our products and services; |
• | our expectations regarding our relationships with our users, clients, business partners, and other stakeholders; |
• | competition in our industry; |
• | our proposed use of proceeds; and |
• | relevant government policies and regulations relating to our industry. |
Item 1. |
Identity of Directors, Senior Management and Advisers |
Item 2. |
Offer Statistics and Expected Timetable |
Item 3. |
Key Information |
• | Our limited operating history makes it difficult to evaluate our business and prospects. We cannot guarantee that we will be able to maintain the growth rate that we have experienced to date. |
• | We have incurred net losses in the past and we may continue to incur losses in the future. |
• | We face intense competition, and if we fail to compete effectively, we may lose market share, users and our business partners. |
• | If we fail to anticipate user needs and provide superior user experience to attract and retain users and increase their purchase with us or fail to adapt our services or business model to evolving user needs or emerging industry standards, our business may be materially and adversely affected. |
• | We rely heavily on sales of perishable products, and ordering errors or product supply disruptions or disruptions to our storage and distribution network may have an adverse impact on the profitability and operating results. |
• | Any harm to our brand or reputation may materially and adversely affect our business and results of operations. |
• | We rely on our suppliers and other business partners to provide quality products and services which are critical to our business. Any changes, interruptions or disruptions of our relationships with them or any interruptions or disruptions of, or negative publicity around, their business may adversely affect our operation. |
• | Our quality control procedures may not be entirely effective. Any failure of or delay in developing and implementing updates in our quality control system may materially and adversely affect our business prospects. |
• | If our expansion into new geographical areas is not successful, our business prospects and results of operations may be materially and adversely affected. |
• | Our expansion into new product offerings or substantial increase in the number of our product offerings may expose us to new and increased challenges and risks. |
• | We face potential liability, expenses for legal claims and harm to our business based on the nature of our business. |
• | Failure to successfully manage our fulfillment infrastructure expansion or any interruption in the operation of the warehouse facilities for an extended period may negatively affect our business, prospects and results of operations. |
• | We may be subject to product liability claims. |
• | If we fail to manage our inventory effectively, our results of operations, financial condition and liquidity may be materially and adversely affected. |
• | There could be adverse legal, tax, and other consequences if delivery riders or workers at our regional processing centers and frontline fulfillment stations were to be classified as our employees or dispatched employees instead of independent contractors. |
• | We engage labor service companies to provide outsourced personnel for a portion of our operations. We have limited control over these personnel and may be subject to liabilities arisen from contracts we enter into with such labor service companies. |
• | Failure to protect confidential information of our users and network against security breaches could damage our reputation and brand and substantially harm our business and results of operations. |
• | Our business is subject to complex and evolving laws and regulations regarding privacy and data protection. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, increased cost of operations, or declines in user growth or engagement, or otherwise harm our business. |
• | We are subject to payment processing risk. |
• | Any lack of requisite approvals, licenses, permits or filings or failure to comply with any requirements of PRC laws, regulations and policies may materially and adversely affect our daily operations and hinder our growth. |
• | We may be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business and operations. |
• | We may not be able to prevent others from unauthorized use of our intellectual property, which could harm our business and competitive position. |
• | Our business may be subject to seasonal sales fluctuations. |
• | We rely on proper operation and maintenance of our mobile platform and internet infrastructure and telecommunications networks in China. Any malfunction, capacity constraint or operation interruption may have an adverse impact on our business. |
• | We identified material weaknesses in our internal control over financial reporting for the years ended December 31, 2019 and 2020 that have now been remediated. If we fail to maintain an effective system of internal controls, we may not be able to accurately or timely report our financial condition or results of operations, meet our reporting obligations or prevent fraud. |
• | The defects in certain leased property interests and failure to register certain lease agreements may materially and adversely affect our business, financial condition, results of operations, and prospects. |
• | We face risks related to natural disasters, health epidemics and other outbreaks, most notably those related to the outbreak of COVID-19. |
• | The audit report included in this annual report is prepared by an independent registered public accounting firm who is not inspected by the PCAOB and, as such, our investors are deprived of the benefits of such inspection. In addition, the adoption of any rules, legislations or other efforts to increase U.S. regulatory access to audit information could cause uncertainty, and we could be delisted if our auditor is unable to meet the PCAOB inspection requirement in time. |
• | Our ADSs will be prohibited from trading in the United States under the HFCA Act in 2024 if the PCAOB is unable to inspect or fully investigate auditors located in China, or as early as 2023 if proposed changes to the law are enacted. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. |
• | Proceedings instituted by the SEC against PRC-based “big four” accounting firms, including our independent registered public accounting firm, could result in financial statements being determined to not be in compliance with the requirements of the Exchange Act. |
• | Changes in China’s economic, political or social conditions or government policies could materially and adversely affect our business and results of operations. |
• | The PRC government’s significant oversight over our business operation could result in a material adverse change in our operations and the value of our ADSs. |
• | The legal system in China embodies uncertainties which could limit the legal protections available to us or impose additional requirements and obligations on our business, which may materially and adversely affect our business, financial condition, and results of operations. |
• | We may be adversely affected by the complexity, uncertainties and changes in PRC regulation of internet-related businesses and companies, and any lack of requisite approvals, licenses or permits applicable to our business may have a material adverse effect on our business and results of operations. |
• | Restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion may limit our ability to pay dividends and other obligations, and affect the value of your investment. |
• | offer and maintain a wide selection of high-quality products; |
• | provide a superior shopping experience to users; |
• | maintain the popularity, attractiveness, diversity, quality and authenticity of our product offerings; |
• | maintain the efficiency, reliability and quality of the fulfillment and delivery services to our users; |
• | maintain or improve users’ satisfaction with our after-sale services; |
• | increase brand awareness through marketing and brand promotion activities; and |
• | preserve our reputation and goodwill in the event of any negative publicity on consumer experience, internet and data security, product quality, price or authenticity, or other issues affecting us or other fresh grocery e-commerce businesses in China. |
• | protecting the data in and hosted on our system, including against attacks on our system by outside parties or fraudulent behavior by our employees; |
• | addressing concerns related to privacy and safety, security and other factors; and |
• | complying with applicable laws, rules and regulations relating to the collection, use or security of personal information, including any requests from regulatory and government authorities relating to such data. |
• | actual or anticipated variations in our revenues, earnings, cash flow, and changes or revisions of our expected results; |
• | fluctuations in operating metrics; |
• | announcements of new investments, acquisitions, strategic partnerships, or joint ventures by us or our competitors; |
• | announcements of new products and services and expansions by us or our competitors; |
• | changes in financial estimates by securities analysts; |
• | announcements of studies and reports relating to the quality of our product and service offerings or those of our competitors; |
• | changes in the economic performance or market valuations of other fresh grocery e-commerce companies; |
• | conditions in the fresh grocery e-commerce market; |
• | detrimental negative publicity about us, our competitors, or our industry; |
• | additions or departures of key personnel; |
• | release of lockup or other transfer restrictions on our outstanding equity securities or sales of additional equity securities; |
• | regulatory developments affecting us or our industry; |
• | general economic or political conditions in China or elsewhere in the world; |
• | fluctuations of exchange rates between the RMB and the U.S. dollar; and |
• | potential litigation or regulatory investigations. |
• | we have instructed the depositary that we do not wish a discretionary proxy to be given; |
• | we have informed the depositary that there is substantial opposition as to a matter to be voted on at the meeting; |
• | a matter to be voted on at the meeting would have a material adverse impact on shareholders; or |
• | the voting at the meeting is to be made on a show of hands. |
• | the rules under the Exchange Act requiring the filing with the SEC of the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act; |
• | the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time; and |
• | the selective disclosure rules by issuers of material nonpublic information under Regulation FD. |
Item 4. |
Information on the Company |
A. |
History and Development of the Company |
B. |
Business Overview |
C. |
Corporate Structure |
Major subsidiaries |
Percentage of Ownership |
Date of Incorporation |
Place of Incorporation |
Major Operation |
||||||||||
Dingdong Fresh Holding Limited | 100% | October 30, 2018 | British Virgin Islands | Investment holding | ||||||||||
Dingdong Fresh (Hong Kong) Limited | 100% | January 4, 2019 | Hong Kong | Investment holding | ||||||||||
Baqianlilu (Wuxi) Network Technology Co., Ltd. | 100% | May 9, 2020 | PRC | E-commerce |
||||||||||
Shanghai 100me Internet Technology Co., Ltd. | 100% | March 23, 2014 | PRC | E-commerce |
||||||||||
Yihengyishu (Shanghai) E-Commerce Co., Ltd. |
100% | April 12, 2017 | PRC | E-commerce |
||||||||||
Chizhiyiheng (Shanghai) E-commerce Co., Ltd. |
100% | July 18, 2018 | PRC | E-commerce |
||||||||||
Shilaiyunzhuan (Hangzhou) E-commerce Co., Ltd. |
100% | January 4, 2019 | PRC | E-commerce |
||||||||||
Shishishun (Shenzhen) E-commerce Co., Ltd. |
100% | July 12, 2019 | PRC | E-commerce |
||||||||||
Shishishun (Jiangsu) E-Commerce Co., Ltd. |
100% | September 18, 2019 | PRC | E-commerce |
||||||||||
ChaoLizhi (Jiangsu) E-Commerce Co., Ltd. |
100% | November 14, 2019 | PRC | E-commerce |
||||||||||
Beijing Bujiangjiu E-Commerce Co., Ltd. |
100% | February 28, 2020 | PRC | E-commerce |
||||||||||
Shanghai Yushengbaigu Food Co., Ltd. | 93.05% | October 21, 2020 | PRC | E-commerce |
||||||||||
Chizhiyiheng (Nanjing) Supply Chain Co., Ltd. | 100% | August 30, 2021 | PRC | E-commerce |
D. |
Property, Plant and Equipment |
Item 4A. |
Unresolved Staff Comments |
Item 5. |
Operating and Financial Review and Prospects |
A. |
Operating Results |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Revenues: |
||||||||||||||||
Product revenues |
3,848,094 | 11,207,178 | 19,896,725 | 3,122,230 | ||||||||||||
Service revenues |
32,018 | 128,609 | 224,401 | 35,214 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
3,880,112 |
11,335,787 |
20,121,126 |
3,157,444 |
||||||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of goods sold |
(3,215,175 | ) | (9,105,294 | ) | (16,076,178 | ) | (2,522,703 | ) | ||||||||
Fulfilment expenses |
(1,936,940 | ) | (4,044,230 | ) | (7,272,535 | ) | (1,141,219 | ) | ||||||||
Sales and marketing expenses |
(260,411 | ) | (568,705 | ) | (1,514,504 | ) | (237,659 | ) | ||||||||
Product development expenses |
(91,145 | ) | (321,697 | ) | (905,007 | ) | (142,015 | ) | ||||||||
General and administrative expenses |
(117,776 | ) | (458,041 | ) | (682,922 | ) | (107,166 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating costs and expenses |
(5,621,447 |
) |
(14,497,967 |
) |
(26,451,146 |
) |
(4,150,762 |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
(1,741,335 |
) |
(3,162,180 |
) |
(6,330,020 |
) |
(993,318 |
) | ||||||||
Interest income |
25,486 | 16,244 | 45,324 | 7,112 | ||||||||||||
Interest expenses |
(58,130 | ) | (38,758 | ) | (85,151 | ) | (13,362 | ) | ||||||||
Other income |
4,414 | 45,026 | 52,403 | 8,223 | ||||||||||||
Other expenses |
(3,146 | ) | (48,696 | ) | (57,785 | ) | (9,068 | ) | ||||||||
Changes in fair value of warrant liabilities |
(100,672 | ) | 11,450 | (44,457 | ) | (6,976 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss before income tax |
(1,873,383 |
) |
(3,176,914 |
) |
(6,419,686 |
) |
(1,007,389 |
) | ||||||||
Income tax expenses |
— | — | (9,373 | ) | (1,471 | ) | ||||||||||
Net loss |
(1,873,383 |
) |
(3,176,914 |
) |
(6,429,059 |
) |
(1,008,860 |
) | ||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Net loss |
(1,873,383 | ) | (3,176,914 | ) | (6,429,059 | ) | (1,008,860 | ) | ||||||||
Add: share-based compensation expenses |
1,990 | 153,110 | 315,362 | 49,487 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP net loss |
(1,871,393 |
) |
(3,023,804 |
) |
(6,113,697 |
) |
(959,373 |
) | ||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Net loss margin |
(48.3 | %) | (28.0 | %) | (32.0 | %) | ||||||
Add: share-based compensation expenses |
0.1 | % | 1.3 | % | 1.6 | % | ||||||
|
|
|
|
|
|
|||||||
Non-GAAP net loss margin |
(48.2 |
%) |
(26.7 |
%) |
(30.4 |
%) | ||||||
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Revenues: |
||||||||||||||||
Product revenues |
3,848,094 | 11,207,178 | 19,896,725 | 3,122,230 | ||||||||||||
Service revenues |
32,018 | 128,609 | 224,401 | 35,214 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
3,880,112 |
11,335,787 |
20,121,126 |
3,157,444 |
||||||||||||
|
|
|
|
|
|
|
|
For the years ended December 31 |
||||||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||||||
RMB |
% |
RMB |
% |
RMB |
US$ |
% |
||||||||||||||||||||||
(in thousands, except for percentage) |
||||||||||||||||||||||||||||
Operating costs and expenses: |
||||||||||||||||||||||||||||
Cost of goods sold |
3,215,175 | 82.9 | % | 9,105,294 | 80.3 | % | 16,076,178 | 2,522,703 | 79.9 | % | ||||||||||||||||||
Fulfilment expenses |
1,936,940 | 49.9 | % | 4,044,230 | 35.7 | % | 7,272,535 | 1,141,219 | 36.1 | % | ||||||||||||||||||
Sales and marketing expenses |
260,411 | 6.7 | % | 568,705 | 5.0 | % | 1,514,504 | 237,659 | 7.5 | % | ||||||||||||||||||
Product development expenses |
91,145 | 2.3 | % | 321,697 | 2.8 | % | 905,007 | 142,015 | 4.5 | % | ||||||||||||||||||
General and administrative expenses |
117,776 | 3.0 | % | 458,041 | 4.0 | % | 682,922 | 107,166 | 3.4 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total operating costs and expenses |
5,621,447 |
144.8 |
% |
14,497,967 |
127.8 |
% |
26,451,146 |
4,150,762 |
131.4 |
% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B. |
Liquidity and Capital Resources |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Net cash used in operating activities |
(964,275 | ) | (2,055,697 | ) | (5,666,538 | ) | (889,203 | ) | ||||||||
Net cash used in investing activities |
(185,629 | ) | (1,021,219 | ) | (4,065,340 | ) | (637,941 | ) | ||||||||
Net cash generated from financing activities |
1,676,274 | 3,656,665 | 9,042,640 | 1,418,988 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
34,670 | (67,860 | ) | (90,778 | ) | (14,245 | ) | |||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash |
561,040 | 511,889 | (780,016 | ) | (122,401 | ) | ||||||||||
Cash and cash equivalents and restricted cash at the beginning of the year |
377,519 | 938,559 | 1,450,448 | 227,607 | ||||||||||||
Cash and cash equivalents and restricted cash at the end of the year |
938,559 | 1,450,448 | 670,432 | 105,206 |
Payment Due by Period |
||||||||||||||||||||||||
Total |
2022 |
2023 |
2024 |
2025 |
2026 and thereafter |
|||||||||||||||||||
(RMB in thousands) |
||||||||||||||||||||||||
Long-term loans (1) |
57,875 | 57,875 | — | — | — | — | ||||||||||||||||||
Operating lease commitments (2) |
2,420,255 | 1,080,579 | 711,673 | 379,318 | 188,455 | 60,230 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
2,478,130 |
1,138,454 |
711,673 |
379,318 |
188,455 |
60,230 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | The long-term loans (including current portion) outstanding as of December 31, 2021 bore a weighted average interest rate of 4.24% per annum. |
(2) | As of December 31, 2021, we were party to additional operating leases of RMB27.8 million primarily to expand our fulfillment infrastructure, which had not yet commenced. |
C. |
Research and Development |
D. |
Trend Information |
E. |
Critical Accounting Estimates |
Item 6. |
Directors, Senior Management and Employees |
A. |
Directors and Senior Management |
Directors and Executive Officers |
Age |
Position/Title | ||
Changlin Liang |
50 | Founder, Director and Chief Executive Officer | ||
Le Yu |
41 | Director and Chief Strategy Officer | ||
Yi Ding |
36 | Director and Vice President | ||
Eric Chi Zhang |
47 | Director | ||
Weili Hong |
52 | Independent Director | ||
Philip Wai Lap Leung |
63 | Independent Director | ||
Xu Jiang |
50 | Chief Technology Officer | ||
Zhijian Xu |
51 | Senior Vice President |
B. |
Compensation |
Name |
Ordinary Shares Underlying Options Awarded |
Weight Average Exercise Price (US$/Share) |
Date of Grant |
Date of Expiration |
||||||||||||
Changlin Liang |
— | — | — | — | ||||||||||||
Le Yu |
* | 3.74 | |
6/30/2016 6/30/2018 10/31/2020 9/30/2021 |
|
|
6/29/2026 6/29/2028 10/30/2030 9/29/2031 |
| ||||||||
Yi Ding |
* | 1.55 | |
6/30/2015 6/30/2016 6/30/2018 10/31/2020 9/30/2021 |
|
|
6/29/2025 6/29/2026 6/29/2028 10/30/2030 9/29/2031 |
| ||||||||
Eric Chi Zhang |
— | — | — | — | ||||||||||||
Weili Hong |
* | 4.66 | 12/31/2021 | 12/30/2031 | ||||||||||||
Philip Wai Lap Leung |
* | 4.66 | 12/31/2021 | 12/30/2031 | ||||||||||||
Xu Jiang |
* | 5.68 | |
4/20/2021 9/30/2021 |
|
|
4/19/2031 9/29/2031 |
| ||||||||
Zhijian Xu |
* | 4.14 | |
6/30/2019 10/31/2020 1/1/2021 9/30/2021 |
|
|
6/29/2029 10/30/2030 12/31/2030 9/29/2031 |
| ||||||||
All directors and executive officers as a group |
3,567,419 |
* | Less than 1% of our total ordinary shares on an as-converted basis outstanding as of the date of this annual report. |
C. |
Board Practices |
• | appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors; |
• | reviewing with the independent auditors any audit problems or difficulties and management’s response; |
• | discussing the annual audited financial statements with management and the independent auditors; |
• | reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures; |
• | overseeing the fairness and appropriateness of our proposed related party transactions; |
• | reviewing and approving all proposed related party transactions; |
• | meeting separately and periodically with management and the independent auditors; and |
• | monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance. |
• | reviewing and approving, or recommending to the board for its approval, the compensation for our chief executive officer and other executive officers; |
• | reviewing and recommending to the board for determination with respect to the compensation of our non-employee directors; |
• | reviewing periodically and approving any incentive compensation or equity plans, programs or similar arrangements; and |
• | selecting a compensation consultant, legal counsel or other adviser only after taking into consideration all factors relevant to that person’s independence from management. |
• | selecting and recommending to the board nominees for election by the shareholders or appointment by the board; |
• | reviewing annually with the board the current composition of the board with regards to characteristics such as independence, knowledge, skills, experience and diversity; |
• | making recommendations on the frequency and structure of board meetings and monitoring the functioning of the committees of the board; and |
• | advising the board periodically with regards to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to the board on all matters of corporate governance and on any remedial action to be taken. |
• | convening shareholders’ annual general meetings and reporting its work to shareholders at such meetings; |
• | declaring dividends and distributions; |
• | appointing officers and determining the term of office of the officers; |
• | exercising the borrowing powers of our company and mortgaging the property of our company; and |
• | approving the transfer of shares in our company, including the registration of such shares in our share register. |
D. |
Employees |
Function |
Number of Employees |
Percentage |
||||||
Product development |
1,743 | 43 | % | |||||
Fulfillment |
1,347 | 34 | % | |||||
General and administrative |
474 | 12 | % | |||||
Sales and marketing |
441 | 11 | % | |||||
|
|
|
|
|||||
Total |
4,005 |
100 |
% | |||||
|
|
|
|
E. |
Share Ownership |
• | each of our directors and executive officers; and |
• | each person known to us to own beneficially more than 5% of our ordinary shares. |
Class A Ordinary Shares |
Class B Ordinary Shares |
% of Beneficial Ownership† |
||||||||||
Directors and Executive Officers*: |
||||||||||||
Changlin Liang (1) |
50,958,450 | 54,543,800 | 29.8 | % | ||||||||
Le Yu |
— | — | — | |||||||||
Yi Ding |
— | — | — | |||||||||
Eric Chi Zhang |
— | — | — | |||||||||
Philip Wai Lap Leung |
— | — | — | |||||||||
Weili Hong |
— | — | — | |||||||||
Xu Jiang |
— | — | — | |||||||||
Zhijian Xu |
— | — | — | |||||||||
All Directors and Executive Officers as a Group |
50,958,450 | 54,543,800 | 29.8 | % | ||||||||
Principal Shareholders: |
||||||||||||
DDL Group Limited (2) |
— | 54,543,800 | 15.4 | % | ||||||||
EatBetter Holding Limited (3) |
40,181,400 | — | 11.3 | % | ||||||||
Internet Fund V Pte. Ltd. (4) |
21,324,750 | — | 6.0 | % | ||||||||
General Atlantic Singapore DD Pte. Ltd. (5) |
19,514,350 | — | 5.5 | % | ||||||||
SVF II Cortex Subco (DE) LLC (6) |
20,906,600 | — | 5.9 | % | ||||||||
CMC Entities (7) |
18,399,900 | — | 5.2 | % | ||||||||
CTG Evergreen Investment C Limited (8) |
17,819,000 | — | 5.0 | % |
* | Except as otherwise indicated below, the business address of our directors and executive officers is 4th Floor, Building 6, 500 Shengxia Road, Pudong New Area, Shanghai, 200125, People’s Republic of China. |
† | For each person and group included in this column, percentage ownership is calculated by dividing the number of shares beneficially owned by such person or group by the sum of the total number of shares outstanding and the number of shares such person or group has the right to acquire upon exercise of option, warrant or other right within 60 days of April 22, 2022, including through the exercise of any option, warrant or other right or the conversion of any other security. The total number of ordinary shares outstanding as of April 22, 2022 is 354,341,528. |
(1) | Represents (i) 54,543,800 Class B ordinary shares directly held by DDL Group Limited that may be deemed to be beneficially owned by Mr. Changlin Liang, (ii) 10,777,050 Class A ordinary shares directly held by EatTogether Holding Limited, that may be deemed to be beneficially owned by Mr. Changlin Liang, as the sole shareholder of EatTogether Holding Limited, and (iii) 40,181,400 Class A ordinary shares directly held by EatBetter Holding Limited, that may be deemed to be beneficially owned by Mr. Changlin Liang who has the sole dispositive power and sole voting power over shares held by EatBetter Holding Limited, as reported in the Schedule 13G filed by the relevant reporting persons with the SEC on February 15, 2022. DDL Group Limited is a British Virgin Islands business company limited by shares beneficially owned by Mr. Changlin Liang. DDL Group Limited is ultimately held by LX Family Trust, a trust established under the laws of British Virgin Islands and managed by TMF (Cayman) Ltd., as the trustee. Under the terms of this trust, Mr. Changlin Liang has the power to direct the trustee with respect to the retention or disposal of, and the exercise of any voting and other rights attached to, the shares held by DDL Group Limited in our company. EatTogether Holding Limited is a company incorporated in the British Virgin Islands and is wholly owned by Mr. Changlin Liang. EatBetter Holding Limited is a company incorporated in the British Virgin Islands, which holds ordinary shares allocated to award our employees under our A&R 2020 Plan. Mr. Changlin Liang has sole dispositive and sole voting power over shares held by EatBetter Holding Limited. The registered office of DDL Group Limited is ICS Corporate Services (BVI) Limited, Sea Meadow House, P.O. Box 116, Road Town, Tort, British Virgin Islands. The registered address of EatTogether Holding Limited is ICS Corporate Services (BVI) Limited, Sea Meadow House, P.O. Box 116, Road Town, Tortola, British Virgin Islands. The registered address of EatBetter Holding Limited is ICS Corporate Services (BVI) Limited, Sea Meadow House, P.O. Box 116, Road Town, Tortola, British Virgin Islands. |
(2) | Represents 54,543,800 Class B ordinary shares held by DDL Group Limited. DDL Group Limited is a British Virgin Islands business company limited by shares beneficially owned by Mr. Changlin Liang. DDL Group Limited is ultimately held by LX Family Trust, a trust established under the laws of British Virgin Islands and managed by TMF (Cayman) Ltd., as the trustee. Under the terms of this trust, Mr. Changlin Liang has the power to direct the trustee with respect to the retention or disposal of, and the exercise of any voting and other rights attached to, the shares held by DDL Group Limited in our company. The registered office of DDL Group Limited is ICS Corporate Services (BVI) Limited, Sea Meadow House, P.O. Box 116, Road Town, Tort, British Virgin Islands. |
(3) | Represents 40,181,400 Class A ordinary shares held by EatBetter Holding Limited, which holds Class A shares allocated to award our employees under our A&R 2020 Plan. EatBetter Holding Limited is a limited liability company incorporated in the British Virgin Islands. Mr. Changlin Liang has sole dispositive power and sole voting power over shares held by EatBetter Holding Limited. Its registered address is ICS Corporate Services (BVI) Limited, Sea Meadow House, P.O. Box 116, Road Town, Tortola, British Virgin Islands. |
(4) | Represents (i) 19,749,750 Class A shares held by Internet Fund V Pte. Ltd., a private limited company incorporated in Singapore and (ii) 1,575,000 Class A ordinary shares represented by 1,050,000 ADSs held by Tiger Global Management, LLC, an affiliate of Internet Fund V Pte. Ltd., based on the information contained in the Form 13F-HR filed by Tiger Global Management, LLC with SEC on February 14, 2022. Internet Fund V Pte. Ltd. is beneficially owned by each of Charles P. Coleman III, Scott L. Shleifer and Tiger Global Singapore Pte. Ltd. Tiger Global Singapore Pte. Ltd. is the investment advisor of Internet Fund V Pte. Ltd. and is controlled by Charles P. Coleman III and Scott L. Shleifer, who exercise control over Internet Fund V Pte. Ltd. as its directors. The registered address of Internet Fund V Pte. Ltd. is 8 Temasek Boulevard, #32-02 Suntec Tower Three, Singapore 038988. |
(5) | Represents 19,514,350 Class A ordinary shares held by General Atlantic Singapore DD Pte. Ltd., a private company limited by shares incorporated in Singapore. Its registered address is 80 Robinson Road #02-00, Singapore, 068898. General Atlantic Singapore DD Pte. Ltd. is wholly owned by General Atlantic Singapore Fund Pte. Ltd. (“GASF”). The major shareholder of GASF is General Atlantic Singapore Interholdco Ltd. (“GASF Interholdco”). The members of GASF Interholdco that share beneficial ownership of the ADSs held of record by General Atlantic Singapore DD Pte. Ltd. are the following General Atlantic investment funds (the “GA Funds”): General Atlantic Partners (Bermuda) IV, L.P. (“GAP Bermuda IV”), General Atlantic Partners (Bermuda) EU, L.P. (“GAP Bermuda EU”), General Atlantic Partners (Lux) SCSP (“GAP Lux”), GAP Coinvestments III, LLC (“GAPCO III”), GAPCO Coinvestments IV, LLC (“GAPCO IV”), GAPCO Coinvestments V, LLC (“GAPCO V”) and GAP Coinvestments CDA, L.P. (“GAPCO CDA”). The general partner of GAP Lux is General Atlantic GenPar (Lux) ScSp (“GA GenPar Lux”) and the general partner of GA GenPar Lux is General Atlantic (Lux) S.à. r.l. (“GA Lux”). The general partner of GAP Bermuda EU and GAP Bermuda IV and the sole shareholder of GA Lux is General Atlantic GenPar (Bermuda), L.P. (“GenPar Bermuda”). GAP (Bermuda) L.P. (“GAP (Bermuda) LP”), which is controlled by the GA Management Committee of GASC MGP, LLC (the “GA Management Committee”), is the general partner of GenPar Bermuda. General Atlantic, L.P. (“GA LP”), which is also controlled by the GA Management Committee, is the managing member of GAPCO III, GAPCO IV and GAPCO V and the general partner of GAPCO CDA. There are nine members of the GA Management Committee of GA LP. Each of the members of the GA Management Committee disclaims ownership of the ADSs and the underlying Class A ordinary shares except to the extent that he has a pecuniary interest therein. |
(6) | Represents 19,331,600 Class A ordinary shares and 1,575,000 Class A ordinary shares represented by 1,050,000 ADSs held by SVF II Cortex Subco (DE) LLC based on the information contained in the Schedule 13G filed by the relevant reporting persons with the SEC on July 12, 2021. SVF II Cortex Subco (DE) LLC is indirectly controlled by SoftBank Vision Fund II-2, L.P. (“SVF II-2”). SB Investment Advisers (UK) Limited (“SBIA UK”) has been appointed as alternative investment fund manager (“AIFM”) and is exclusively responsible for managing SVF II-2 in accordance with the Alternative Investment Fund Managers Directive and is authorized and regulated by the UK Financial Conduct Authority accordingly. As AIFM of SVF II-2, SBIA UK is exclusively responsible for making all decisions related to the acquisition, structuring, financing and disposal of SVF II-2’s investments. The registered address of SVF II Cortex Subco (DE) LLC is 251 Little Falls Drive, Wilmington, DE, 19808, United States. |
(7) | Represents an aggregate of 18,399,900 Class A ordinary shares owned by CMC Dynamite Holdings Limited (“CMC Dynamite I”), CMC Dynamite Holdings II Limited (“CMC Dynamite II”), CMC Dynamite Holdings III Limited (“CMC Dynamite III”), CMC Dynamite Holdings IV Limited (“CMC Dynamite IV”) and Alpha Yasai Holdings Limited (“Alpha Yasai”) based on the information contained in the Schedule 13G filed by the relevant reporting persons with the SEC on February 14, 2022. Each of CMC Dynamite I, CMC Dynamite II, CMC Dynamite III and CMC Dynamite IV is an exempted company with limited liability incorporated under the law of the Cayman Islands. CMC Dynamite I, CMC Dynamite II, CMC Dynamite III and CMC Dynamite IV are respectively wholly owned by CMC Dynamite, L.P., CMC Dynamite II, L.P., CMC Dynamite III, L.P. and CMC Dynamite IV, L.P. The general partners of CMC Dynamite, L.P., CMC Dynamite II, L.P., CMC Dynamite III, L.P. and CMC Dynamite IV, L.P. is CMC Dynamite GP, L.P, whose general partner is CMC Capital Partners GP II, Ltd. Alpha Yasai is an exempted company with limited liability incorporated under the law of the Cayman Islands and is wholly owned by Alpha Plus Fund, L.P., whose general partner is Alpha Plus Fund GP, Ltd. CMC Capital Partners GP II, Ltd. and Alpha Plus Fund GP, Ltd. are ultimately wholly-owned by Mr. Li Ruigang. The registered address of CMC Dynamite I, CMC Dynamite II, CMC Dynamite III, CMC Dynamite IV and Alpha Yasai is Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. |
(8) | Represents 17,819,000 Class A ordinary shares held by CTG Evergreen Investment C Limited based on the information contained in the Schedule 13G filed by the relevant reporting persons with the SEC on February 9, 2022. The registered address of CTG Evergreen Investment C Limited is CCS Trustees Limited, 263 Main Street, Road Town, Tortola, British Virgin Islands. CTG Evergreen Investment C Limited is owned by Capital Today Evergreen Fund, L.P., a limited partnership incorporated in the Cayman Islands. The general partner of Capital Today Evergreen Fund, L.P. is Capital Today Evergreen GenPar LTD., a Cayman Islands company, and is controlled by Ms. Xin Xu. |
Item 7. |
Major Shareholders and Related Party Transactions |
A. |
Major Shareholders |
B. |
Related Party Transactions |
C. |
Interests of Experts and Counsel |
Item 8. |
Financial Information |
A. |
Consolidated Statements and Other Financial Information |
B. |
Significant Changes |
Item 9. |
The Offer and Listing |
A. |
Offering and Listing Details |
B. |
Plan of Distribution |
C. |
Markets |
D. |
Selling Shareholders |
E. |
Dilution |
F. |
Expenses of the Issue |
Item 10. |
Additional Information |
A. |
Share Capital |
B. |
Memorandum and Articles of Association |
• | the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer; |
• | the instrument of transfer is in respect of only one class of ordinary shares; |
• | the instrument of transfer is properly stamped, if required; |
• | in the case of a transfer to joint holders, the number of joint holders to whom the ordinary share is to be transferred does not exceed four; and |
• | a fee of such maximum sum as the New York Stock Exchange may determine to be payable or such lesser sum as our directors may from time to time require is paid to us in respect thereof. |
• | the designation of the series; |
• | the number of shares of the series; |
• | the dividend rights, dividend rates, conversion rights, voting rights; and |
• | the rights and terms of redemption and liquidation preferences. |
• | authorize our board of directors to issue preference shares in one or more series and to designate the price, rights, preferences, privileges and restrictions of such preference shares without any further vote or action by our shareholders; and |
• | limit the ability of shareholders to requisition and convene general meetings of shareholders. |
• | does not have to file an annual return of its shareholders with the Registrar of Companies; |
• | is not required to open its register of members for inspection; |
• | does not have to hold an annual general meeting; |
• | may issue negotiable or bearer shares or shares with no par value; |
• | may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance); |
• | may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands; |
• | may register as a limited duration company; and |
• | may register as a segregated portfolio company. |
• | the statutory provisions as to the required majority vote have been met; |
• | the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class; |
• | the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and |
• | the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act. |
• | a company acts or proposes to act illegally or ultra vires; |
• | the act complained of, although not ultra vires, could only be effected duly if authorized by more than a simple majority vote that has not been obtained; and |
• | those who control the company are perpetrating a “fraud on the minority.” |
C. |
Material Contract s |
D. |
Exchange Controls |
E. |
Taxation |
• | banks and other financial institutions; |
• | insurance companies; |
• | pension plans; |
• | cooperatives; |
• | regulated investment companies; |
• | real estate investment trusts; |
• | broker-dealers in stocks and securities, or currencies; |
• | traders that elect to use a mark-to-market |
• | certain former U.S. citizens or long-term residents; |
• | tax-exempt entities (including private foundations); |
• | persons who acquire their ADSs or Class A ordinary shares pursuant to any employee share option or otherwise as compensation; |
• | persons that will hold their ADSs or Class A ordinary shares as part of a straddle, hedge, conversion, constructive sale, or other integrated transaction for U.S. federal income tax purposes; |
• | persons that have a functional currency other than the U.S. dollar; |
• | persons required to accelerate the recognition of any item of gross income with respect to our ADSs or Class A ordinary shares as a result of such income being recognized on an applicable financial statement; |
• | persons that actually or constructively own 10% or more of our stock (by vote or value); or |
• | partnerships or other entities taxable as partnerships for U.S. federal income tax purposes, or persons holding ADSs or Class A ordinary shares through such entities, |
• | an individual who is a citizen or resident of the United States; |
• | a corporation created in, or organized under the law of the United States or any state thereof or the District of Columbia; |
• | an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or |
• | a trust (A) the administration of which is subject to the primary supervision of a U.S. court and which has one or more U.S. persons who have the authority to control all substantial decisions of the trust or (B) that has otherwise validly elected to be treated as a U.S. person under the Code. |
• | the excess distribution or gain will be allocated ratably over the U.S. Holder’s holding period for the ADSs or Class A ordinary shares; |
• | the amount allocated to the current taxable year and any taxable years in the U.S. Holder’s holding period prior to the first taxable year in which we are classified as a PFIC (each, a “pre-PFIC year”), will be taxable as ordinary income; |
• | the amount allocated to each prior taxable year, other than a pre-PFIC year, will be subject to tax at the highest tax rate in effect for individuals or corporations, as appropriate, for that year; and |
• | an additional tax equal to the interest charge generally applicable to underpayments of tax will be imposed on the tax attributable to each prior taxable year, other than a pre-PFIC year. |
F. |
Dividends and Paying Agents |
G. |
Statement by Experts |
H. |
Documents on Display |
I. |
Subsidiary Information |
Item 11. |
Quantitative and Qualitative Disclosures about Market Risk |
Item 12. |
Description of Securities Other than Equity Securities |
A. |
Debt Securities |
B. |
Warrants and Rights |
C. |
Other Securities |
D. |
American Depositary Shares |
Service |
Fees | |
• To any person to which ADSs are issued or to any person to which a distribution is made in respect of ADS distributions pursuant to stock dividends or other free distributions of stock, bonus distributions, stock splits or other distributions (except where converted to cash) |
Up to US$0.05 per ADS issued | |
• Cancellation of ADSs, including the case of termination of the deposit agreement |
Up to US$0.05 per ADS cancelled | |
• Distribution of cash dividends |
Up to US$0.05 per ADS held | |
• Distribution of cash entitlements (other than cash dividends) and/or cash proceeds from the sale of rights, securities and other entitlements |
Up to US$0.05 per ADS held | |
• Distribution of ADSs pursuant to exercise of rights. |
Up to US$0.05 per ADS held | |
• Distribution of securities other than ADSs or rights to purchase additional ADSs |
Up to US$0.05 per ADS held | |
• Depositary services |
Up to US$0.05 per ADS held on the applicable record date(s) established by the depositary bank |
• | Fees for the transfer and registration of ordinary shares charged by the registrar and transfer agent for the ordinary shares in the Cayman Islands (i.e., upon deposit and withdrawal of ordinary shares). |
• | Expenses incurred for converting foreign currency into U.S. dollars. |
• | Expenses for cable, telex and fax transmissions and for delivery of securities. |
• | Taxes and duties upon the transfer of securities, including any applicable stamp duties, any stock transfer charges or withholding taxes (i.e., when ordinary shares are deposited or withdrawn from deposit). |
• | Fees and expenses incurred in connection with the delivery or servicing of ordinary shares on deposit. |
• | Fees and expenses incurred in connection with complying with exchange control regulations and other regulatory requirements applicable to ordinary shares, deposited securities, ADSs and ADRs. |
• | Any applicable fees and penalties thereon. |
Payment |
of Taxes |
Item 13. |
Defaults, Dividend Arrearages and Delinquencies |
Item 14. |
Material Modifications to the Rights of Security Holders and Use of Proceeds |
Item 15. |
Controls and Procedures |
Item 16A. |
Audit Committee Financial Expert |
Item 16B. |
Code of Ethics |
Item 16C. |
Principal Accountant Fees and Services |
2020 |
2021 |
|||||||||||||||
(in thousands) |
||||||||||||||||
Audit fees(1) |
US$ | 1,539 | US$ | 769 | ||||||||||||
Audit-related fees (2) |
US$ | 110 | US$ | 392 | ||||||||||||
Tax fees (3) |
US$ | 17 | US$ | 23 | ||||||||||||
All other fees(4) |
US$ | — | US$ | — |
(1) | “Audit fees” means the aggregate fees billed for each of the fiscal years listed for professional services rendered by our principal accountant for the audit of our annual financial statements and assistance with and review of documents filed with the SEC and other statutory and regulatory filings. |
(2) | “Audit-related fees” means the aggregate fees billed for each of the fiscal years listed for professional services rendered by our principal accountant reasonably related to the performance of the audit or review of our financial statements and are not included under Audit Fees. |
(3) | “Tax Fees” means the aggregate fees billed for each of the fiscal years listed for professional services rendered by our principal accountant for tax compliance, tax advice and tax planning. |
(4) | “All Other Fees” represents the aggregate fees billed for each of the fiscal years listed for products or professional services rendered by our principal accountant not included in Audit Fees, Audit-Related Fees or Tax Fees. |
Item 16D. |
Exemptions from the Listing Standards for Audit Committees |
Item 16E. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
Period |
Total Number of ADSs Purchased |
Average Price Paid per ADS(1) |
Total Number of ADSs Purchased as Part of Publicly Announced Plans or Programs(2) |
Approximate Dollar Value of ADSs that May Yet Be Purchased Under the Program(2) |
||||||||||||
December 20, 2021 through March 31, 2022 |
242,210 | US$ | 10.99 | 242,210 | US$ | 27.3 million | ||||||||||
Total |
242,210 |
US$ |
10.99 |
242,210 |
US$ |
27.3 million |
Item 16F. |
Change in Registrant’s Certifying Accountant |
Item 16G. |
Corporate Governance |
Item 16H. |
Mine Safety Disclosure |
Item 16I. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
Item 17. |
Financial Statements |
Item 18. |
Financial Statements |
Item 19. |
Exhibits |
12.1* | Certification by Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
12.2* | Certification by Principal Financial and Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
13.1** | Certification by Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
13.2** | Certification by Principal Financial and Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS* | Inline XBRL Instance Document—this instance document does not appear on the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* | Filed herewith. |
** | Furnished herewith. |
Dingdong (Cayman) Limited | ||
By: | /s/ Changlin Liang | |
Name: Changlin Liang | ||
Title: Director and Chief Executive Officer |
F-2 |
||||
F-4 |
||||
F-7 |
||||
F-8 |
||||
F-9 |
||||
F-11 |
Valuation of 2021 Senior Management Awards | ||
Description of the Matter |
As disclosed in Note 14 to the consolidated financial statements, ordinary shares were issued to a director and executive officer of the Company in 2021 with no associated performance or service based vesting conditions at nil consideration (“2021 Senior Management Awards”). The fair value of the 2021 Senior Management Awards were immediately recognized as share-based compensation expense of RMB197.2 million (US$30.6 million) for the year ended December 31, 2021. As the Company’s ordinary shares were not publicly traded on the date the 2021 Senior Management Awards were granted, with the assistance of an independent third-party valuation firm, management estimated the fair value of the Company’s ordinary shares using a discounted cash flow approach to determine the enterprise value of the Company, which was then allocated to various classes of equity. Auditing the fair value of the Company’s 2021 Senior Management Awards was complex and required the application of significant auditor judgment to evaluate the significant assumptions, which included, among others, forecasted revenues, gross margins and operating expenses, weighted average cost of capital and discount for lack of marketability. These assumptions are forward-looking and include assumptions about economic and market conditions with uncertain future outcomes. | |
How We Addressed the Matter in Our Audit |
To test the valuation of the 2021 Senior Management Awards, our audit procedures included, among others, evaluating the valuation methodology used by the Company and testing the assumptions with the assistance of our valuation specialists. For example, when assessing the fair value of the ordinary shares, we tested the completeness and accuracy of the underlying data used by the Company in the discounted cash flow model to estimate the business enterprise value and the subsequent allocation of the business enterprise value to various classes of equity. We assessed the reasonableness of forecasted revenues, gross margins and operating expenses by comparing them to historical trends, current market trends and industry data. We evaluated the Company’s estimates of weighted average cost of capital by comparing it against a range of estimates that were independently developed. We also independently recalculated the discount for lack of marketability and weighted average cost of capital. |
As of December 31, |
||||||||||||||||
2020 |
2021 |
2021 |
||||||||||||||
RMB |
RMB |
US$ |
||||||||||||||
Notes |
||||||||||||||||
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ (DEFICIT)/EQUITY (CONTINUED) |
||||||||||||||||
Mezzanine Equity: |
||||||||||||||||
Series Angel redeemable convertible preferred shares (US$0.000002 par value; 5,910,100 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 12,400 | — | — | ||||||||||||
Series Angel+ redeemable convertible preferred shares (US$0.000002 par value; 8,268,950 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 40,686 | — | — | ||||||||||||
Series Pre-A redeemable convertible preferred shares (US$0.000002 par value; 8,985,050 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 54,796 | — | — | ||||||||||||
Series A redeemable convertible preferred shares (US$0.000002 par value; 22,096,550 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 142,337 | — | — | ||||||||||||
Series A+ redeemable convertible preferred shares (US$0.000002 par value; 1,060,200 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 14,308 | — | — | ||||||||||||
Series B redeemable convertible preferred shares (US$0.000002 par value; 19,473,100 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 364,419 | — | — | ||||||||||||
Series B2 redeemable convertible preferred shares (US$0.000002 par value; 11,072,800 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 236,139 | — | — | ||||||||||||
Series B3 redeemable convertible preferred shares (US$0.000002 par value; 28,013,200 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 841,145 | — | — | ||||||||||||
Series B4-1 redeemable convertible preferred shares (US$0.000002 par value; 7,269,600 and nil shares authorized, issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 284,085 | — | — | ||||||||||||
Series B4 redeemable convertible preferred shares (US$0.000002 par value; 13,979,450 and nil shares authorized as of December 31, 2020 and 2021, respectively, 6,989,700 and nil issued and outstanding as of December 31, 2020 and 2021, respectively) |
17 | 220,491 | — | — |
For the year ended December 31, |
||||||||||||||||||||
Notes |
2019 |
2020 |
2021 |
2021 |
||||||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||||||
Revenues: |
||||||||||||||||||||
Product revenues |
3 | 3,848,094 | 11,207,178 | 19,896,725 | 3,122,230 | |||||||||||||||
Service revenues |
3 | 32,018 | 128,609 | 224,401 | 35,214 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total revenues |
3,880,112 |
11,335,787 |
20,121,126 |
3,157,444 |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Operating costs and expenses: |
||||||||||||||||||||
Cost of goods sold |
(3,215,175 | ) | (9,105,294 | ) | (16,076,178 | ) | (2,522,703 | ) | ||||||||||||
Fulfilment expenses |
(1,936,940 | ) | (4,044,230 | ) | (7,272,535 | ) | (1,141,219 | ) | ||||||||||||
Sales and marketing expenses |
(260,411 | ) | (568,705 | ) | (1,514,504 | ) | (237,659 | ) | ||||||||||||
Product development expenses |
(91,145 | ) | (321,697 | ) | (905,007 | ) | (142,015 | ) | ||||||||||||
General and administrative expenses |
(117,776 | ) | (458,041 | ) | (682,922 | ) | (107,166 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total operating costs and expenses |
(5,621,447 |
) |
(14,497,967 |
) |
(26,451,146 |
) |
(4,150,762 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Loss from operations |
(1,741,335 |
) |
(3,162,180 |
) |
(6,330,020 |
) |
(993,318 |
) | ||||||||||||
Interest income |
25,486 | 16,244 | 45,324 | 7,112 | ||||||||||||||||
Interest expenses |
(58,130 | ) | (38,758 | ) | (85,151 | ) | (13,362 | ) | ||||||||||||
Other income |
4,414 | 45,026 | 52,403 | 8,223 | ||||||||||||||||
Other expenses |
(3,146 | ) | (48,696 | ) | (57,785 | ) | (9,068 | ) | ||||||||||||
Changes in fair value of warrant liabilities |
(100,672 | ) | 11,450 | (44,457 | ) | (6,976 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Loss before income tax |
(1,873,383 |
) |
(3,176,914 |
) |
(6,419,686 |
) |
(1,007,389 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income tax expenses |
15 | — | — | (9,373 | ) | (1,471 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss |
(1,873,383 |
) |
(3,176,914 |
) |
(6,429,059 |
) |
(1,008,860 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Accretion of redeemable convertible preferred shares |
(74,558 | ) | (320,301 | ) | (288,380 | ) | (45,253 | ) | ||||||||||||
Deemed dividend |
(46,168 | ) | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss attributable to ordinary shareholders |
(1,994,109 |
) |
(3,497,215 |
) |
(6,717,439 |
) |
(1,054,113 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net loss per ordinary share: |
||||||||||||||||||||
Basic and diluted |
19 | (32.45 | ) | (54.91 | ) | |||||||||||||||
Net loss per Class A and Class B ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
19 | |
|
|
|
|
|
|
|
|
|
|
(34.50 |
) |
|
|
(5.41 |
) |
Shares used in net loss per ordinary share computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
19 | |
|
|
61,446,250 |
|
|
|
63,690,000 |
|
|
|
|
|
|
|
|
|
Shares used in net loss per Class A and Class B ordinary share computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
19 | 194,713,891 | 194,713,891 | |||||||||||||||||
Other comprehensive income/(loss), net of tax of nil: |
||||||||||||||||||||
Foreign currency translation adjustments |
30,409 | (53,370 | ) | (161,281 | ) | (25,308 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive loss |
(1,842,974 |
) |
(3,230,284 |
) |
(6,590,340 |
) |
(1,034,168 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Accretion of redeemable convertible preferred shares |
(74,558 | ) | (320,301 | ) | (288,380 | ) | (45,253 | ) | ||||||||||||
Deemed dividend |
(46,168 | ) | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive loss attributable to ordinary shareholders |
(1,963,700 |
) |
(3,550,585 |
) |
(6,878,720 |
) |
(1,079,421 |
) | ||||||||||||
|
|
|
|
|
|
|
|
Ordinary Shares |
Treasury Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income/(Loss) |
Accumulated Deficit |
Total Shareholders’ (Deficit)/Equity |
|||||||||||||||||||||||||||
Shares* |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||
RMB |
RMB |
RMB |
RMB |
RMB |
RMB |
|||||||||||||||||||||||||||
Balance at January 1, 2019 |
67,966,900 |
1 |
— |
— |
47,546 |
— |
(556,950 |
) |
(509,403 |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Deemed dividend from re-designation of ordinary shares to Series Angel+ preferred shares |
(7,803,400 | ) | — |
— |
— |
(18,577 | ) | — |
(46,168 | ) | (64,745 | ) | ||||||||||||||||||||
Accretion of redeemable convertible preferred shares |
— |
— |
— |
— |
— |
— |
(74,558 | ) | (74,558 | ) | ||||||||||||||||||||||
Share-based compensation |
— |
— |
— |
— |
1,990 | — |
— |
1,990 | ||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
— |
(1,873,383 | ) | (1,873,383 | ) | ||||||||||||||||||||||
Other comprehensive income |
— |
— |
— |
— |
— |
30,409 | — |
30,409 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 31, 2019 |
60,163,500 |
1 |
— |
— |
30,959 |
30,409 |
(2,551,059 |
) |
(2,489,690 |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Accretion of redeemable convertible preferred shares |
— | — | (320,301 | ) | (320,301 | ) | ||||||||||||||||||||||||||
Share-based compensation |
4,745,200 | — | — | — | 120,698 | — | — | 120,698 | ||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | (3,176,914 | ) | (3,176,914 | ) | ||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | (53,370 | ) | — | (53,370 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 31, 2020 |
64,908,700 |
1 |
— |
— |
151,657 |
(22,961 |
) |
(6,048,274 |
) |
(5,919,577 |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Accretion of redeemable convertible preferred shares |
— | — | — | — | — | — | (288,380 | ) | (288,380 | ) | ||||||||||||||||||||||
Issuance of ordinary shares in connection with initial public offering |
6,372,528 | — | — | — | 589,959 | — | — | 589,959 | ||||||||||||||||||||||||
Automatic conversion of redeemable convertible preferred shares to ordinary shares upon initial public offering |
250,826,100 | 3 | — | — | 12,628,084 | — | — | 12,628,087 | ||||||||||||||||||||||||
Share-based compensation |
2,601,000 | — | — | — | 315,362 | — | — | 315,362 | ||||||||||||||||||||||||
Repurchase of ordinary shares |
— | — | (109,944 | ) | (7,042 | ) | — | — | — | (7,042 | ) | |||||||||||||||||||||
Net los s |
— | — | — | — | — | — | (6,429,059 | ) | (6,429,059 | ) | ||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | (161,281 | ) | — | (161,281 | ) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 31, 2021 |
324,708,328 |
4 |
(109,944 |
) |
(7,042 |
) |
13,685,062 |
(184,242 |
) |
(12,765,713 |
) |
728,069 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at December 31, 2021 (US$) |
1 |
(1,105 |
) |
2,147,485 |
(28,912 |
) |
(2,003,219 |
) |
114,250 |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* |
As of December 31, 2019, 2020 and 2021, nil, nil and 29,633,200 ordinary shares were held by EatBetter Holding Limited related to the Amended and Restated 2020 Share Incentive Plan (Note 14), respectively. These shares are considered legally issued but not outstanding. |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Operating activities: |
||||||||||||||||
Net loss |
(1,873,383 | ) | (3,176,914 | ) | (6,429,059 | ) | (1,008,860 | ) | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||||||||
Depreciation and amortization |
34,734 | 115,354 | 213,082 | 33,437 | ||||||||||||
Accretion related to convertible notes |
39,477 | 21,334 | — | — | ||||||||||||
Foreign exchange loss/(gain) |
4,026 | 35,049 | (7,689 | ) | (1,207 | ) | ||||||||||
Share-based compensation |
1,990 | 153,110 | 315,362 | 49,487 | ||||||||||||
Loss on disposal of property and equipment |
— | 16,481 | 35,483 | 5,568 | ||||||||||||
Extinguishment losses |
— | 29,141 | — | — | ||||||||||||
Changes in fair value of warrant liabilities |
100,672 | (11,450 | ) | 44,457 | 6,976 | |||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Accounts receivable |
(11,836 | ) | (26,508 | ) | (152,714 | ) | (23,964 | ) | ||||||||
Inventories |
(131,712 | ) | (224,983 | ) | (151,041 | ) | (23,702 | ) | ||||||||
Advance to suppliers |
(1,115 | ) | (14,580 | ) | (49,578 | ) | (7,780 | ) | ||||||||
Prepayments and other current assets |
(55,657 | ) | (18,345 | ) | (363,965 | ) | (57,111 | ) | ||||||||
Operating lease right-of-use |
(353,240 | ) | (1,015,534 | ) | (742,349 | ) | (116,491 | ) | ||||||||
Other non-current assets |
(29,250 | ) | (80,029 | ) | (49,175 | ) | (7,717 | ) | ||||||||
Accounts payable |
640,895 | 804,769 | 478,676 | 75,115 | ||||||||||||
Salary and welfare payable |
30,375 | 93,921 | 107,780 | 16,913 | ||||||||||||
Advances from customers and deferred revenue |
66,663 | 70,111 | 103,076 | 16,175 | ||||||||||||
Accrued expenses and other current liabilities |
222,760 | 182,376 | 164,625 | 25,833 | ||||||||||||
Operating lease liabilities |
350,326 | 991,000 | 747,118 | 117,239 | ||||||||||||
Other non-current liabilities |
— | — | 69,373 | 10,886 | ||||||||||||
Net cash used in operating activities |
(964,275 |
) |
(2,055,697 |
) |
(5,666,538 |
) |
(889,203 |
) | ||||||||
Investing activities: |
||||||||||||||||
Purchases of property and equipment |
(124,812 | ) | (248,476 | ) | (451,608 | ) | (70,867 | ) | ||||||||
Proceeds from disposal of property and equipment |
— | 1,165 | 547 | 86 | ||||||||||||
Purchases of short-term investments |
(1,053,459 | ) | (1,306,245 | ) | (9,078,466 | ) | (1,424,609 | ) | ||||||||
Maturities of short-term investments |
992,642 | 542,437 | 5,454,087 | 855,864 | ||||||||||||
Loans to related parties |
— | (10,100 | ) | (2,500 | ) | (392 | ) | |||||||||
Repayment of loans from related parties |
— | — | 12,600 | 1,977 | ||||||||||||
Net cash used in investing activities |
(185,629 |
) |
(1,021,219 |
) |
(4,065,340 |
) |
(637,941 |
) | ||||||||
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Financing activities: |
||||||||||||||||
Proceeds from short-term borrowings |
845,583 | 1,444,638 | 9,558,649 | 1,499,962 | ||||||||||||
Repayment of short-term borrowings |
(906,582 | ) | (210,117 | ) | (7,672,124 | ) | (1,203,924 | ) | ||||||||
Proceeds from long-term borrowings |
60,000 | 128,000 | — | — | ||||||||||||
Repayment of long-term borrowings |
(7,500 | ) | (35,625 | ) | (87,000 | ) | (13,652 | ) | ||||||||
Issuance of redeemable convertible preferred shares, net of issuance costs |
961,095 | 2,171,263 | 6,646,458 | 1,042,974 | ||||||||||||
Issuance of convertible notes, net of issuance costs |
516,999 | — | — | — | ||||||||||||
Issuance of redeemable noncontrolling interests |
— | — | 30,000 | 4,708 | ||||||||||||
Proceeds from initial public offering, net of issuance costs |
— | — | 589,959 | 92,577 | ||||||||||||
Repurchase of ordinary shares |
— | — | (2,912 | ) | (457 | ) | ||||||||||
Advance from shareholders |
206,679 | 158,506 | — | — | ||||||||||||
Repayment of advance from shareholders |
— | — | (20,390 | ) | (3,200 | ) | ||||||||||
Net cash generated from financing activities |
1,676,274 |
3,656,665 |
9,042,640 |
1,418,988 |
||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
34,670 | (67,860 | ) | (90,778 | ) | (14,245 | ) | |||||||||
Net increase/(decrease) in cash and cash equivalents and restricted cash |
561,040 |
511,889 |
(780,016 |
) |
(122,401 |
) | ||||||||||
Cash and cash equivalents and restricted cash at the beginning of the year |
377,519 | 938,559 | 1,450,448 | 227,607 | ||||||||||||
Cash and cash equivalents and restricted cash at the end of the year |
938,559 |
1,450,448 |
670,432 |
105,206 |
||||||||||||
Supplemental disclosure of cash flow information: |
||||||||||||||||
Interest paid |
18,653 | 13,037 | 77,100 | 12,099 | ||||||||||||
Non-cash investing and financing activities: |
||||||||||||||||
Purchase of property and equipment included in accrued expenses and other liabilities |
1,512 | 29,489 | 12,341 | 1,937 | ||||||||||||
Extinguishment of convertible loans provided by the Founder in exchange for warrants |
190,500 | — | — | — | ||||||||||||
Issuance of Series B4-1 redeemable convertible preferred shares upon exercise of warrants held by the Founder |
— | 203,771 | — | — | ||||||||||||
Issuance of Series C1 redeemable convertible preferred shares upon conversion of convertible notes |
— | 628,709 | — | — | ||||||||||||
Issuance of Series B4 redeemable convertible preferred shares upon exercise of warrants |
— | — | 359,832 | 56,465 | ||||||||||||
Issuance of Series C1 redeemable convertible preferred shares upon the extinguishment of advance from shareholders |
— | — | 158,506 | 24,873 | ||||||||||||
Reconciliation of cash and cash equivalents and restricted cash: |
||||||||||||||||
Cash and cash equivalents |
938,559 | 1,376,153 | 662,768 | 104,003 | ||||||||||||
Restricted cash |
— | 74,295 | 7,664 | 1,203 | ||||||||||||
Total cash and cash equivalents and restricted cash shown in the statements of cash flows |
938,559 |
1,450,448 |
670,432 |
105,206 |
1. |
ORGANIZATION AND PRINCIPAL ACTIVITIES |
Major subsidiaries |
Percentage of Ownership |
Date of Incorporation |
Place of Incorporation |
Major Operation |
||||||||||||
Dingdong Fresh Holding Limited (“Dingdong Fresh BVI”) |
100 | % | October 30, 2018 | Islands (“BVI”) |
|
Investment holding | | |||||||||
Dingdong Fresh (Hong Kong) Limited (“Dingdong HK”) |
100 | % | January 4, 2019 | Hong Kong | Investment holding | | ||||||||||
Baqianlilu (Wuxi) Network Technology Co., Ltd. |
100 | % | May 9, 2020 | P | E-commerce | |||||||||||
Shanghai 100me Internet Technology Co., Ltd. (“Shanghai 100me”) |
100 | % | March 23, 2014 | P | E-commerce | |||||||||||
Yihengyishu (Shanghai) E-Commerce Co., Ltd. |
100 | % | April 12, 2017 | P | E-commerce | |||||||||||
Chizhiyiheng (Shanghai) E-commerce Co., Ltd.(“Chizhiyiheng Shanghai”) |
100 | % | July 18, 2018 | P | E-commerce | |||||||||||
Shilaiyunzhuan (Hangzhou) E-commerce Co., Ltd. |
100 | % | January 4, 2019 | P | E-commerce | |||||||||||
Shishishun (Shenzhen) E-commerce Co., Ltd. |
100 | % | July 12, 2019 | P | E-commerce | |||||||||||
Shishishun (Jiangsu) E-Commerce Co., Ltd. |
100 | % | September 18, 2019 | P | E-commerce | |||||||||||
Chao Lizhi (Jiangsu) E-Commerce Co., Ltd. |
100 | % | November 14, 2019 | P | E-commerce | |||||||||||
Beijing Bujiangjiu E-Commerce Co., Ltd. |
100 | % | February 28, 2020 | P | E-commerce | |||||||||||
Shanghai Yushengbaigu Food Co., Ltd. |
93.05 | % | October 21, 2020 | P | E-commerce | |||||||||||
Chizhiyiheng (Nanjing) Supply Chain Co., Ltd. |
|
|
100 |
% |
|
|
August 30, 2021 |
|
|
|
P |
|
|
|
E-commerce | |
1. |
ORGANIZATION AND PRINCIPAL ACTIVITIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
Category |
Estimated useful life | |
Furniture, fixtures and equipment | 4-5 years | |
Electronic office equipment | 3-5 years | |
Leasehold improvements | Over the shorter of the lease term or estimated useful life |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
2. |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
3. |
REVENUE FROM CONTRACTS WITH CUSTOMERS |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Customer advances and prepaid cards |
57,081 | 96,785 | 15,188 | |||||||||
Deferred revenue related to loyalty points |
16,558 | 2,852 | 448 | |||||||||
Deferred membership service revenue |
66,765 | 143,843 | 22,571 | |||||||||
Total |
140,404 |
243,480 |
38,207 |
|||||||||
3. |
REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED) |
4. |
FAIR VALUE MEASUREMENTS |
Fair Value Measurements at Reporting Date Using |
||||||||||||||||
As of December 31, 2020 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
( RMB in thousands) |
||||||||||||||||
Short-term investments |
1,006,245 | — | 1,006,245 | — |
||||||||||||
1,006,245 |
— |
1,006,245 |
— |
|||||||||||||
Fair Value Measurements at Reporting Date Using |
||||||||||||||||
As of December 31, 2021 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
( RMB in thousands) |
||||||||||||||||
Short-term investments |
4,568,346 | — | 4,568,346 | — |
||||||||||||
4,568,346 |
— |
4,568,346 |
— |
|||||||||||||
4. |
FAIR VALUE MEASUREMENTS (CONTINUED) |
As of December 31, 2020 |
||||
Series B4 Warrant | ||||
Expected volatility |
51.35 | % | ||
Risk-free interest rate |
0.09 | % | ||
Remaining contractual life |
0.62 | |||
Fair value of the underlying preferred shares |
US$6.50 | |||
Warrant fair value |
US$118.58 |
4. |
FAIR VALUE MEASUREMENTS (CONTINUED) |
5. |
INVENTORIES |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Products |
329,065 | 487,066 | 76,431 | |||||||||
Packing materials and others |
57,366 | 50,406 | 7,910 | |||||||||
Total |
386,431 |
537,472 |
84,341 |
|||||||||
6. |
PREPAYMENTS AND OTHER CURRENT ASSETS |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Deductible VAT |
45,285 | 359,915 | 56,478 | |||||||||
Others |
52,593 | 101,928 | 15,994 | |||||||||
Total |
97,878 |
461,843 |
72,472 |
|||||||||
7. |
PROPERTY AND EQUIPMENT, NET |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Electronic office equipment |
29,720 | 58,463 | 9,174 | |||||||||
Leasehold improvements |
250,745 | 555,941 | 87,239 | |||||||||
Furniture, fixtures and equipment |
110,778 | 177,621 | 27,873 | |||||||||
Total |
391,243 | 792,025 | 124,286 | |||||||||
Less: |
||||||||||||
Accumulated depreciation |
(133,098 | ) | (328,367 | ) | (51,528 | ) | ||||||
Construction in progress |
14,546 | 8,713 | 1,367 | |||||||||
Total |
272,691 |
472,371 |
74,125 |
|||||||||
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Fulfillment expenses |
31,988 | 107,333 | 195,022 | 30,603 | ||||||||||||
Sales and marketing expenses |
865 | 2,018 | 2,666 | 419 | ||||||||||||
General and administrative expenses |
1,520 | 4,731 | 7,395 | 1,160 | ||||||||||||
Product development expenses |
361 | 1,272 | 7,999 | 1,255 | ||||||||||||
Total |
34,734 |
115,354 |
213,082 |
33,437 |
||||||||||||
8. |
OTHER NON-CURRENT ASSETS |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Rental deposits |
111,521 | 167,282 | 26,250 | |||||||||
Others |
9,938 | 18,511 | 2,906 | |||||||||
Total |
121,459 | 185,793 | 29,156 | |||||||||
9. |
SHORT-TERM BORROWINGS |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Short-term bank loans |
449,649 | 630,000 | 98,861 | |||||||||
Reversed factoring arrangements |
784,873 | 2,491,046 | 390,899 | |||||||||
Total |
1,234,522 |
3,121,046 |
489,760 |
|||||||||
9. |
SHORT-TERM BORROWINGS (CONTINUED) |
10. |
LONG-TERM BORROWINGS |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Long-term borrowings |
144,875 | 57,875 | 9,082 | |||||||||
|
|
|
|
|
|
|||||||
Less: Current portion of long-term borrowings |
(86,500 | ) | (57,875 | ) | (9,082 | ) | ||||||
|
|
|
|
|
|
|||||||
Total |
58,375 | — |
— |
|||||||||
|
|
|
|
|
|
As of December 31, 2021 |
||||||||
RMB |
US$ |
|||||||
(in thousands) |
||||||||
2022 |
57,875 | 9,082 | ||||||
|
|
|
|
|||||
Total |
57,875 | 9,082 | ||||||
|
|
|
|
11. |
LEASES |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Operating lease right-of-use |
1,503,222 |
2,245,571 |
352,379 |
|||||||||
|
|
|
|
|
|
|||||||
Operating lease liabilities, current |
594,787 | 969,494 | 152,135 | |||||||||
Operating lease liabilities, non-current |
871,685 | 1,244,096 | 195,226 | |||||||||
|
|
|
|
|
|
|||||||
Total operating lease liabilities |
1,466,472 |
2,213,590 |
347,361 |
|||||||||
|
|
|
|
|
|
|||||||
Weighted average remaining lease term |
2.85 years |
2.79 years |
2.79 years |
|||||||||
|
|
|
|
|
|
|||||||
Weighted average discount rate |
6.4 | % |
6.8 | % |
6.8 | % | ||||||
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Operating lease cost |
165,733 | 475,064 | 953,325 | 149,597 | ||||||||||||
Short-term lease cost |
1,859 | 7,391 | 12,227 | 1,919 | ||||||||||||
Variable lease cost |
— | — | 8,247 | 1,294 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
167,592 | 482,455 | 973,799 | 152,810 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash paid for operating leases |
168,787 | 500,458 | 1,002,511 | 157,316 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Right-of-use |
499,615 | 1,489,367 | 1,671,666 | 262,321 | ||||||||||||
|
|
|
|
|
|
|
|
11. |
LEASES (CONTINUED) |
As of December 31, 2021 |
||||||||
RMB |
US$ |
|||||||
(in thousands) |
||||||||
2022 |
1,080,579 | 169,566 | ||||||
2023 |
711,673 | 111,677 | ||||||
2024 |
379,318 | 59,523 | ||||||
2025 |
188,455 | 29,573 | ||||||
2026 |
59,163 | 9,284 | ||||||
Thereafter |
1,067 | 168 | ||||||
Total future lease payments |
2,420,255 | 379,791 | ||||||
Less: imputed interest |
(206,665 | ) |
(32,430 | ) | ||||
Total operating lease liabilities |
2,213,590 | 347,361 | ||||||
12. |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Advance from shareholders |
385,575 | — | — | |||||||||
Accrued outsourcing expenses |
343,681 | 385,305 | 60,463 | |||||||||
Accrued transportation and logistic expenses |
51,549 | 43,759 | 6,867 | |||||||||
VAT and other tax payable |
15,965 | 30,081 | 4,720 | |||||||||
Deposit from suppliers |
9,965 | 29,437 | 4,619 | |||||||||
Interest payable |
4,386 | 14,749 | 2,314 | |||||||||
Accrued advertising expenses |
9,925 | 43,916 | 6,892 | |||||||||
Accrued utilities and other expenses |
36,692 | 106,014 | 16,636 | |||||||||
Total |
857,738 | 653,261 | 102,511 | |||||||||
13. |
ORDINARY SHARES |
14. |
SHARE-BASED COMPENSATION |
14. |
SHARE-BASED COMPENSATION (CONTINUED) |
14. |
SHARE-BASED COMPENSATION (CONTINUED) |
Number of Options |
Weighted Average Exercise Price Per option |
Weighted Average grant date fair value per option |
Weighted Average Remaining Contractual Life |
Aggregate Intrinsic Value |
||||||||||||||||
US$ |
US$ |
Years |
US$ (in thousands) |
|||||||||||||||||
Share options outstanding as of December 31, 2020 |
224,295,105 | 0.2160 | 0.0496 | 9.55 | 20,468 | |||||||||||||||
Granted |
200,923,883 | 0.2767 | 0.5092 | |||||||||||||||||
Forfeited |
(40,751,365 | ) | 0.2793 | 0.2594 | ||||||||||||||||
|
|
|||||||||||||||||||
Share options outstanding as of December 31, 2021 |
384,467,623 | 0.2099 | 0.2676 | 8.28 | 126,484 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Exercisable as of December 31, 2021 |
104,626,808 | 0.0746 | 0.0510 | 5.58 | 48,593 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
14. |
SHARE-BASED COMPENSATION (CONTINUED) |
For the years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Fair value of ordinary shares (US$) |
2.78 | 4.78 | 4.78-15.78 |
|||||||||
Risk-free interest rate (%) |
0.88-2.00 |
0.66-0.88 |
0.93-1.71 |
|||||||||
Expected volatility (%) |
47-48 |
47-48 | 48 | |||||||||
Expected dividend yield |
— | — | — | |||||||||
Life of option |
10 | 10 | 10 | |||||||||
Exercise multiple |
2.5 | 2.5 | 2.5 | |||||||||
Post-vesting forfeiture rate |
— | — | — |
14. |
SHARE-BASED COMPENSATION (CONTINUED) |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Fulfillment expenses |
258 | 1,974 | 32,673 | 5,127 | ||||||||||||
Sales and marketing expenses |
174 | 532 | 6,927 | 1,087 | ||||||||||||
Product development expenses |
1,043 | 4,370 | 42,666 | 6,695 | ||||||||||||
General and administrative expenses |
515 | 146,234 | 233,096 | 36,578 | ||||||||||||
Total |
1,990 |
153,110 |
315,362 |
49,487 |
||||||||||||
15. |
INCOME TAXES |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Current tax |
— | — | 9,373 | 1,471 | ||||||||||||
Deferred tax |
— | — | — | — | ||||||||||||
Total |
— |
— |
9,373 | 1,471 | ||||||||||||
15. |
INCOME TAXES (CONTINUED) |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Non-PRC |
(114,137 | ) | (178,916 | ) | 20,929 | 3,284 | ||||||||||
PRC |
(1,759,246 | ) | (2,997,998 | ) | (6,440,615 | ) | (1,010,673 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Tota l |
(1,873,383 |
) |
(3,176,914 |
) |
(6,419,686 |
) |
(1,007,389 |
) | ||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
(in thousands) |
||||||||||||||||
Loss before income tax expense |
(1,873,383 | ) | (3,176,914 | ) | (6,419,686 | ) | (1,007,389 | ) | ||||||||
PRC statutory tax rate |
25 | % | 25 | % | 25 | % | 25 | % | ||||||||
Income tax benefit computed at the statutory income tax rate |
(468,346 | ) | (794,228 | ) | (1,604,922 | ) | (251,847 | ) | ||||||||
Non-deductible expenses |
17,455 | 6,368 | (8,320 | ) | (1,306 | ) | ||||||||||
Transfer pricing adjustment |
|
|
— |
|
|
|
— |
|
|
|
102,468 |
|
|
|
16,079 |
|
Non-taxable income |
— | (126 | ) | (1,561 | ) | (245 | ) | |||||||||
Research and development super-deduction |
(5,831 | ) | (55,306 | ) | 64,806 | 10,170 | ||||||||||
Statutory income/(expense) |
80,846 | 7,298 | (5,244 | ) | (823 | ) | ||||||||||
Effect of preferential tax |
137,154 | 22,992 | 5,022 | 788 | ||||||||||||
Changes in valuation allowances |
353,871 | 784,611 | 1,465,818 | 230,019 | ||||||||||||
Impact of changes in tax rate on deferred tax |
(143,683 | ) | (16,464 | ) | (5,023 | ) | (788 | ) | ||||||||
Effect of income tax rate difference in other jurisdictions |
28,534 | 44,855 | (3,671 | ) | (576 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income tax expenses |
— | — | 9,373 | 1,471 | ||||||||||||
|
|
|
|
|
|
|
|
15. |
INCOME TAXES (CONTINUED) |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Deferred tax assets: |
||||||||||||
Operating lease liabilities |
366,618 | 553,397 | 86,840 | |||||||||
Accrued expenses and other current liabilities |
6,139 | 4,134 | 649 | |||||||||
Government subsidies |
— | 15,000 | 2,354 | |||||||||
Tax losses carried forward |
1,235,164 | 2,700,304 | 423,736 | |||||||||
Less: valuation allowances * |
(1,253,620 | ) | (2,719,438 | ) | (426,739 | ) | ||||||
|
|
|
|
|
|
|||||||
Total deferred tax assets, net. |
354,301 |
553,397 |
86,840 |
|||||||||
|
|
|
|
|
|
|||||||
Deferred tax liabilities: |
||||||||||||
Operating lease right-of-use |
(354,301 | ) | (553,397 | ) | (86,840 | ) | ||||||
Total deferred tax liabilities, net. |
(354,301 |
) |
(553,397 |
) | (86,840 |
) | ||||||
|
|
|
|
|
|
|||||||
Deferred tax assets/liabilities, net |
— |
— |
— |
|||||||||
|
|
|
|
|
|
* |
The Company operates through its PRC subsidiaries and evaluates the potential realization of deferred tax assets on an entity basis. The Group recorded valuation allowances against deferred tax assets of those PRC subsidiaries that are in a three-year cumulative financial loss or had incurred losses since inception as of December 31, 2020 and 2021. In making such determination, the Group also evaluates a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Balance at beginning of the year |
593 | 593 | 93 | |||||||||
Additions |
— | 117,468 | 18,433 | |||||||||
Decreases |
— | — | — | |||||||||
Settlement |
— | (593 | ) | (93 | ) | |||||||
|
|
|
|
|
|
|||||||
Balance at end of the year |
593 |
117,468 |
18,433 |
|||||||||
|
|
|
|
|
|
16. |
RELATED PARTY TRANSACTIONS AND BALANCES |
Related Party |
Relationship with the Group | |
Mr. Liang Changlin |
Founder and CEO of the Company | |
Shanghai Tiejun Enterprise Consulting Center (Limited Partnership) (“Tiejun”) |
Controlled by Mr. Liang Changlin | |
EatTogether Holding Limited (“EatTogether”) |
Controlled by Mr. Liang Changlin |
16. |
RELATED PARTY TRANSACTIONS AND BALANCES (CONTINUED) |
As of December 31, |
||||||||||||
2020 |
2021 |
2021 |
||||||||||
RMB |
RMB |
US$ |
||||||||||
(in thousands) |
||||||||||||
Current: |
||||||||||||
Loan to Mr. Liang Changlin |
9,000 | — | — | |||||||||
Loan to Tiejun |
1,100 | — | — | |||||||||
Total |
10,100 | — |
— |
|||||||||
17. |
REDEEMABLE CONVERTIBLE PREFERRED SHARES |
• | 5,910,100 Series Angel preferred shares for a total cash consideration of RMB10.0 million issued in April 2014; |
• | 8,985,050 Series Pre-A preferred shares at US$0.72 per share for a total cash consideration of US$6.5 million issued in May 2018; |
• | 22,096,550 Series A preferred shares at US$0.79 per share for a total cash consideration of US$17.4 million issued in September 2018; |
• | 1,060,200 Series A+ preferred shares at US$1.65 per share for a total cash consideration of US$1.8 million in October 2018; |
• | 17,140,700 Series B preferred shares at US$2.36 per share for a total cash consideration of US$40.4 million in November 2018; |
• | 11,072,800 Series B2 preferred shares at US$2.71 per share for a total cash consideration of US$30.0 million in January 2019; |
• | 2,332,400 Series B preferred shares at US$2.36 per share for a total cash consideration of US$5.5 million in March 2019; |
• | 7,803,400 ordinary shares held by the Founder were re-designated as Series Angel+ preferred shares in May 2019(Note 13); |
• | 28,013,200 Series B3 preferred shares at US$3.93 per share for a total cash consideration of US$110.0 million in May 2019; and |
• | 6,989,700 Series B4 preferred shares at US$4.29 per share for a total cash consideration of US$30.0 million in June 2019 |
17. |
REDEEMABLE CONVERTIBLE PREFERRED SHARES (CONTINUED) |
17. |
REDEEMABLE CONVERTIBLE PREFERRED SHARES (CONTINUED) |
17. |
REDEEMABLE CONVERTIBLE PREFERRED SHARES (CONTINUED) |
17. |
REDEEMABLE CONVERTIBLE PREFERRED SHARES (CONTINUED) |
17. |
REDEEMABLE CONVERTIBLE PREFERRED SHARES (CONTINUED) |
Series Angel Preferred Shares |
Series Angel+ Preferred Shares |
Series Pre-A Preferred Shares |
Series A Preferred Shares |
Series A+ Preferred Shares |
Series B Preferred Shares |
|||||||||||||||||||||||||||||||||||||||||||
(in thousands of RMB and US$, except for number of shares) | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 |
5,910,100 |
10,800 |
— |
— |
8,985,050 |
47,004 |
22,096,550 |
122,088 |
1,060,200 |
12,272 |
17,140,700 |
277,706 |
||||||||||||||||||||||||||||||||||||
Issuance of Preferred Shares |
— |
— |
— |
— | — | — | — | — | — | — | 2,332,400 | 37,159 | ||||||||||||||||||||||||||||||||||||
Re-designation from ordinary shares to Series Angel+ preferred shares |
— |
— |
7,803,400 | 18,577 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accretion of Preferred Shares |
— |
864 | — |
(37,233 | ) | — | 3,760 | — | 9,767 | — | 982 | — | 25,369 | |||||||||||||||||||||||||||||||||||
Deemed dividend |
— |
— |
— |
46,168 | — |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
5,910,100 |
11,664 |
7,803,400 |
27,512 |
8,985,050 |
50,764 |
22,096,550 |
131,855 |
1,060,200 |
13,254 |
19,473,100 |
340,234 |
||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
5,910,100 |
11,664 |
7,803,400 |
27,512 |
8,985,050 |
50,764 |
22,096,550 |
131,855 |
1,060,200 |
13,254 |
19,473,100 |
340,234 |
||||||||||||||||||||||||||||||||||||
Issuance of Preferred Shares |
— | — | 465,550 | 10,967 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Accretion of Preferred Shares |
— | 736 | — | 2,207 | — | 4,032 | — | 10,482 | — | 1,054 | — | 24,185 | ||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
5,910,100 |
12,400 |
8,268,950 |
40,686 |
8,985,050 |
54,796 |
22,096,550 |
142,337 |
1,060,200 |
14,308 |
19,473,100 |
364,419 |
||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
5,910,100 |
12,400 |
8,268,950 |
40,686 |
8,985,050 |
54,796 |
22,096,550 |
142,337 |
1,060,200 |
14,308 |
19,473,100 |
364,419 |
||||||||||||||||||||||||||||||||||||
Issuance of Preferred Shares |
||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of Preferred Shares |
— |
396 |
— |
1,151 |
— |
2,126 |
— |
5,521 |
— |
555 |
— |
17,949 |
||||||||||||||||||||||||||||||||||||
Automatic conversion of preferred shares to ordinary shares upon IPO |
(5,910,100 |
) |
(12,796 |
) |
(8,268,950 |
) |
(41,837 |
) |
(8,985,050 |
) |
(56,922 |
) |
(22,096,550 |
) |
(147,858 |
) |
(1,060,200 |
) |
(14,863 |
) |
(19,473,100 |
) |
(382,368 |
) | ||||||||||||||||||||||||
Balance as of December 31, 2021 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 (US$) |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
17. |
REDEEMABLE CONVERTIBLE PREFERRED SHARES (CONTINUED) |
Series B2 Preferred Shares |
Series B3 Preferred Shares |
Series B4-1 Preferred Shares |
Series B4 Preferred Shares |
Series C1 Preferred Shares |
Series D Preferred Shares |
Series D+ Preferred Shares |
||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands of RMB and US$, except for number of shares) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Issuance of Preferred Shares |
11,072,800 | 203,707 | 28,013,200 | 737,920 | — |
— |
6,989,700 | 195,952 | — |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Accretion of Preferred Shares |
— | 16,323 | — | 45,884 | — |
— |
— | 8,842 | — |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
11,072,800 |
220,030 |
28,013,200 |
783,804 |
— |
— |
6,989,700 |
204,794 |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 |
11,072,800 |
220,030 |
28,013,200 |
783,804 |
— |
— |
6,989,700 |
204,794 |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Issuance of Preferred Shares |
— | — | — | — | 7,269,600 | 259,914 | — | — | 51,329,600 | 2,799,817 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Accretion of Preferred Shares |
— | 16,109 | — | 57,341 | — | 24,171 | — | 15,697 | — | 164,287 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
11,072,800 |
236,139 |
28,013,200 |
841,145 |
7,269,600 |
284,085 |
6,989,700 |
220,491 |
51,329,600 |
2,964,104 |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 |
11,072,800 |
236,139 |
28,013,200 |
841,145 |
7,269,600 |
284,085 |
6,989,700 |
220,491 |
51,329,600 |
2,964,104 |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Issuance of Preferred Shares |
— | — | — | — | — | — | 6,989,750 | 359,832 | 2,895,100 | 158,507 | 49,207,650 | 4,547,263 | 21,264,750 | 2,099,195 | ||||||||||||||||||||||||||||||||||||||||||
Accretion of Preferred Shares |
— | 11,702 | — | 39,479 | — | 3,871 | — | (99,577 | ) | — | 133,863 | — | 128,382 | — | 42,962 | |||||||||||||||||||||||||||||||||||||||||
Automatic conversion of preferred shares to ordinary shares upon IPO |
(11,072,800 | ) | (247,841 | ) | (28,013,200 | ) | (880,624 | ) | (7,269,600 | ) | (287,956 | ) | (13,979,450 | ) | (480,746 | ) | (54,224,700 | ) | (3,256,474 | ) | (49,207,650 | ) | (4,675,645 | ) | (21,264,750 | ) | (2,142,157 | ) | ||||||||||||||||||||||||||||
Balance as of December 31, 2021 |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 (US$) |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||||||
18. |
REDEEMABLE NONCONTROLLING INTERESTS |
For the years ended December 31, |
||||||||
2021 |
2021 |
|||||||
RMB |
US$ |
|||||||
(in thousands) |
||||||||
Balance as of December 31, 2020 |
— |
— |
||||||
Issuance of subsidiary shares |
30,000 | 4,708 | ||||||
Accretion of redeemable noncontrolling interests |
— | — | ||||||
Balance as of December 31, 2021 |
30,000 |
4,708 |
||||||
19. |
NET LOSS PER SHARE |
For the years ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Ordinary shares |
Ordinary shares |
Class A |
Class B |
|||||||||||||||||||||
RMB |
RMB |
RMB |
US$ |
RMB |
US$ |
|||||||||||||||||||
(in thousands, except for number of shares) |
||||||||||||||||||||||||
Numerator: |
||||||||||||||||||||||||
Net loss |
(1,873,383 |
) |
(3,176,914 |
) |
(4,628,133 |
) |
(726,255 |
) |
(1,800,926 |
) |
(282,605 |
) | ||||||||||||
Accretion of redeemable convertible preferred shares |
(74,558 |
) |
(320,301 |
) |
(207,598 |
) |
(32,577 |
) |
(80,782 |
) |
(12,676 |
) | ||||||||||||
Deemed dividend |
(46,168 |
) |
— |
— |
— |
— |
— |
|||||||||||||||||
Numerator for computing basic and diluted net loss per share |
(1,994,109 |
) |
(3,497,215 |
) |
(4,835,731 |
) |
(758,832 |
) |
(1,881,708 |
) |
(295,281 |
) | ||||||||||||
Denominator: |
||||||||||||||||||||||||
Weighted average number of ordinary shares outstanding |
61,446,250 |
63,690,000 |
140,170,091 |
140,170,091 |
54,543,800 |
54,543,800 |
||||||||||||||||||
Loss p er s hare (RMB): |
||||||||||||||||||||||||
Basic and diluted net loss per share: |
(32.45 |
) |
(54.91 |
) |
(34.50 |
) |
(5.41 |
) |
(34.50 |
) |
(5.41 |
) | ||||||||||||
20. |
STATUTORY RESERVES |
21. |
RESTRICTED NET ASSETS |
22. |
COMMITMENTS AND CONTINGENCIES |
23. |
SUBSEQUENT EVENTS |
24. |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION |
24. |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) |
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Operating expenses: |
||||||||||||||||
General and administrative expenses |
375 | (142,186 | ) | (271,436 | ) | (42,594 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
375 |
(142,186 |
) |
(271,436 |
) |
(42,594 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Income/(loss) from operations |
375 |
(142,186 |
) |
(271,436 |
) |
(42,594 |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Interest income |
24,423 | 7,699 | 8,611 | 1,351 | ||||||||||||
Interest expenses |
(39,477 | ) | (21,334 | ) | — | — | ||||||||||
Other expenses |
— | (29,141 | ) | — | — | |||||||||||
Changes in fair value of warrant liabilities |
(100,672 | ) | 11,450 | (44,457 | ) | (6,976 | ) | |||||||||
Share of losses in subsidiarie s |
(1,758,032 | ) | (3,003,402 | ) | (6,121,777 | ) | (960,641 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
(1,873,383 |
) |
(3,176,914 |
) |
(6,429,059 |
) |
(1,008,860 |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Accretions of redeemable convertible preferred shares |
(74,558 | ) | (320,301 | ) | (288,380 | ) | (45,253 | ) | ||||||||
Deemed dividend |
(46,168 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss attributable to ordinary shareholders |
(1,994,109 |
) |
(3,497,215 |
) |
(6,717,439 |
) |
(1,054,113 |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income/(loss), net of tax of nil: |
||||||||||||||||
Foreign currency translation adjustments |
30,409 | (53,370 | ) | (161,281 | ) | (25,308 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive loss |
(1,842,974 | ) |
(3,230,284 | ) |
(6,590,340 | ) |
(1,034,168 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Accretions of redeemable convertible preferred shares |
(74,558 | ) | (320,301 | ) | (288,380 | ) | (45,253 | ) | ||||||||
Deemed dividend |
(46,168 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive loss attributable to ordinary shareholders |
(1,963,700 |
) |
(3,550,585 |
) |
(6,878,720 |
) |
(1,079,421 |
) | ||||||||
|
|
|
|
|
|
|
|
For the years ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
2021 |
|||||||||||||
RMB |
RMB |
RMB |
US$ |
|||||||||||||
Net cash provided by/(used in) operating activities |
24,414 | 7,564 | (4,066 | ) | (638 | ) | ||||||||||
Net cash used in investing activities |
(1,663,826 | ) | (1,957,689 | ) | (7,713,202 | ) | (1,210,370 | ) | ||||||||
Net cash generated from financing activities |
1,340,157 | 2,281,673 | 7,215,688 | 1,132,299 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
20,632 | (41,844 | ) | (25,625 | ) | (4,021 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (decrease)/increase in cash and cash equivalents |
(278,623 |
) |
289,704 |
(527,205 |
) |
(82,730 |
) | |||||||||
Cash and cash equivalents at beginning of the year |
540,624 |
262,001 |
551,705 |
86,575 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents at end of the year |
262,001 |
551,705 |
24,500 |
3,845 |
||||||||||||
|
|
|
|
|
|
|
|
24. |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) |
1 Year Dingdong Cayman Chart |
1 Month Dingdong Cayman Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions