Dingdong (Cayman) Limited has agreed to sell all shares of its subsidiary Dingdong Fresh Holding Limited, which holds substantially all of its China operations, to a Meituan subsidiary for cash consideration of US$717 million, plus up to US$280 million in additional cash transfers, subject to adjustments.
On successful closing and receipt of proceeds, the company intends to use not less than 90% of its post-closing cash balance, after costs and expenses, for share repurchase plans and/or dividends to shareholders. The deal remains subject to multiple conditions, including shareholder approval, anti-monopoly clearance in China, tax filings, completion of an overseas business carve-out, lender consents and the absence of material adverse changes.
The company cautions that there is no assurance the transaction will close or that any buybacks or dividends will occur, and urges shareholders and ADS holders to exercise caution in trading its securities.
Dingdong (Cayman) Limited entered into a definitive agreement to sell all shares of its British Virgin Islands subsidiary that holds substantially all of its China operations to a Meituan subsidiary for cash consideration of US$717 million, subject to post-closing adjustments.
Dingdong will retain its international business after a reorganization and plans to call an extraordinary general meeting for shareholders to approve the transaction. Closing depends on conditions including shareholder approval, antitrust clearance from China’s SAMR, completion of an overseas carve-out, tax filings, and no material adverse effect.
The deal includes a five-year non-compete and non-solicitation in the consumer fresh grocery e-commerce business in Greater China, a no‑shop clause, and tiered termination fees of up to US$150 million for certain failures to close. During the transition period, operating results of the China business will accrue to the buyer.
Dingdong (NYSE: DDL) reported third-quarter 2025 results, showing steady growth and continued profitability. Revenue rose 1.9% year over year to RMB6,662.4 million, driven by more orders from higher monthly transacting users and increased order frequency, partly offset by lower CPI prices in key categories. GMV edged up 0.1% to RMB7,273.2 million.
Profitability remained positive but moderated. Net income was RMB82.9 million with a 1.2% margin, while non-GAAP net income was RMB101.3 million with a 1.5% margin. This marks seven consecutive GAAP-profitable quarters and twelve on a non-GAAP basis. Income from operations was RMB59.3 million; non-GAAP income from operations was RMB77.7 million.
Cash trends stayed healthy with operating cash inflow of RMB144.4 million. Cash, cash equivalents and short-term investments totaled RMB3,908.2 million as of September 30, 2025, and management noted actual cash owned after short-term borrowings of RMB3.03 billion. The company aims to maintain scale year over year and achieve non-GAAP profits in the fourth quarter of 2025.
Dingdong (Cayman) Limited reported another profitable quarter for the three months ended June 30, 2025, with both growth and margins improving. Total revenues reached RMB5,975.9 million (US$834.2 million), up 6.7% year over year, driven mainly by more orders from a higher number of transacting users and increased order frequency. GMV rose 4.5% to RMB6,499.4 million (US$907.3 million), while total orders grew 5.5%.
GAAP net income increased 59.7% year over year to RMB107.2 million (US$15.0 million), the sixth straight quarter of profitability, with a net margin of 1.8%. Non-GAAP net income grew 23.9% to RMB127.8 million (US$17.8 million), with margin improving to 2.1%. The company generated RMB101.4 million (US$14.2 million) of net cash from operating activities, its eighth consecutive quarter of positive operating cash flow, and reported RMB3,974.2 million (US$554.8 million) in cash, restricted cash and short-term investments as of June 30, 2025.