Dingdong Posts Tenth Straight Quarter of Profit as Meituan Deal Looms

The company’s net income reached RMB 271.7 million, bolstered by a significant accounting adjustment: the cessation of depreciation and amortization on assets classified as held-for-sale. This specific treatment added RMB 199.1 million to the bottom line. Despite the ongoing divestment process, core business metrics remain resilient, driven by increased order frequency from loyal members and expanded market penetration in Eastern China.

Revenue for the quarter grew 8.6% year-over-year to RMB 6.49 billion. While domestic operations showed strength, the company’s overseas expansion saw a 36.2% revenue surge, reaching RMB 73.2 million. CEO Song Wang noted that the business entered a peak season in July, with daily GMV hitting record highs. Operational efficiency also improved, as fulfillment expenses dropped to 18.6% of total revenue, down from 21.7% in the same period last year.

Leadership changes accompanied the financial results. Senior Finance Director Zhou Chen has resigned for personal reasons, with Yikun Zhu, a company veteran with an extensive background in investment and finance, stepping in to oversee the firm’s financial affairs. The transaction with Meituan, first announced in February, remains subject to standard closing conditions, including clearance from the State Administration for Market Regulation.