Shanghai-based online grocery company Dingdong Maicai reported its first adjusted net income with the announcement of its second-quarter earnings on Thursday. The company reported non-GAAP net income of RMB 20.6 million (US$3.1 million), a dramatic improvement from the net loss of RMB 1.72 billion in the same period last year. Non-GAAP is an accounting measure excluding share-based compensation expenses. The company’s financial improvements were largely due to increased revenue and cost-cutting. Revenue hit RMB 6.63 billion, up 42.8% from last year, while operational expenses stayed relatively flat, only going up 0.8%. In particular, expenditure on fulfillment, sales and marketing, and general administration significantly decreased, while the cost of goods sold and the amount spent on product development increased. The company’s net loss was RMB 34.5 million, also a substantial narrowing from last year’s RMB 1.93 billion. Another factor that helped Dingdong’s operation is that it was one of the essential companies that the Shanghai government chose to ensure the delivery of critical daily supplies during the city’s weeks-long Covid lockdown from March to June. The company expects to break even (in non-GAAP terms) in December this year. Dingdong went public on the New York Stock Exchange in June 2021. [Dingdong Maicai]