Dingdong Announces US$20.0 Million Share Repurchase Program

Rhea-AI Summary

Dingdong (NYSE: DDL), a leading fresh grocery e-commerce company in China, has announced a share repurchase program of up to US$20.0 million. The program will run until March 5, 2026, with repurchases potentially executed through open market transactions, private negotiations, block trades, or other legal means.

The company plans to implement the share repurchase after publishing its annual results by March 31, 2025, in compliance with Rules 10b5-1 and 10b-18 of the U.S. Securities Exchange Act. The board will conduct periodic reviews of the program and may adjust its terms and size. The repurchase will be funded through the company's existing cash balance, reflecting management's confidence in DDL's cash reserves and flow.

Positive

• US$20 million share repurchase program announced
• Strong cash position indicated by existing cash balance funding
• Management confidence in company's financial health

Negative

• Relatively small buyback size for a NYSE-listed company

News Market Reaction – DDL

+13.38%

1 alert

+13.38% News Effect

On the day this news was published, DDL gained 13.38%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SHANGHAI, March 6, 2025 /PRNewswire/ -- Dingdong (Cayman) Limited ("Dingdong" or the "Company") (NYSE: DDL), leading fresh grocery e-commerce company in China, today announced that its board of directors has authorized a share repurchase program under which the Company may repurchase up to US$20.0 million of its shares over a period until March 5, 2026.

The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. After the publication of the annual results of the Company on or before March 31, 2025, the management may implement the share repurchase, including but not limited to implementing the share repurchase in accordance with plans under the Rule 10b5-1 and/or Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended. The Company's board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. Given the confidence in the Company's sufficient cash reserves and cash flow, the Company expects to fund the repurchases out of its existing cash balance.

About Dingdong (Cayman) Limited

Dingdong (Cayman) Limited is a leading fresh grocery e-commerce company in mainland China, with sustainable long-term growth. We directly provide users and households with fresh groceries, prepared food, and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Leveraging our deep insights into consumers' evolving needs and our strong food innovation capabilities, we have successfully launched a series of private label products spanning a variety of food categories. Many of our private label products are produced at our Dingdong production plants, allowing us to more efficiently produce and offer safe and high-quality food products. We aim to be the first choice for fresh and food shopping.

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Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue," or other similar expressions. Among other things, business outlook and quotations from management in this announcement, as well as Dingdong's strategic and operational plans, contain forward-looking statements. Dingdong may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Dingdong's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dingdong's goals and strategies; Dingdong's future business development, financial conditions, and results of operations; the expected outlook of the on-demand e-commerce market in China; Dingdong's expectations regarding demand for and market acceptance of its products and services; Dingdong's expectations regarding its relationships with its users, clients, business partners, and other stakeholders; competition in Dingdong's industry; Dingdong's proposed use of proceeds; and relevant government policies and regulations relating to Dingdong's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this announcement and in the attachments is as of the date of the announcement, and the Company undertakes no duty to update such information, except as required under applicable law.

View original content:https://www.prnewswire.com/news-releases/dingdong-announces-us20-0-million-share-repurchase-program-302394413.html

SOURCE Dingdong (Cayman) Limited

FAQ

What is the size and duration of Dingdong's (DDL) new share repurchase program?

Dingdong's share repurchase program allows for up to US$20.0 million in share repurchases until March 5, 2026.

When will Dingdong (DDL) begin implementing its share repurchase program?

DDL will begin implementing the share repurchase after publishing its annual results, expected by March 31, 2025.

How will Dingdong (DDL) fund its US$20 million share repurchase program?

The company will fund the repurchases using its existing cash balance, citing sufficient cash reserves and cash flow.

What methods will Dingdong (DDL) use to execute its share repurchases?

DDL may execute repurchases through open market transactions, private negotiations, block trades, or other legally permissible means.