China's Dingdong Q3 net income jumps 260% on asset accounting change
DDL•Dingdong's third-quarter revenue rose 10.8% year over year to RMB 7.38 billion, while net income climbed 259.6% to RMB 298.1 million. The increase was aided by the cessation of depreciation and amortization for assets of its China business, which is pending sale to Meituan.
1. Quarterly results
Dingdong reported third-quarter revenue of RMB 7.38 billion, up 10.8% year over year. Net income rose 259.6% to RMB 298.1 million, and adjusted net income was RMB 307.6 million.
2. Drivers and pending sale
The company said higher average monthly transacting users and increased order frequency drove revenue growth in China. Densification and new frontline fulfillment station openings in Eastern China contributed to core market growth. Net income also benefited from the cessation of depreciation and amortization for held-for-sale China business assets; the sale to Meituan is awaiting regulatory approval. Dingdong provided no specific guidance for upcoming quarters or the full year.
