Chinese grocery e-commerce company Dingdong reported a significant profit uplift amid higher revenues in the second fiscal quarter.

The New York-listed company raised net income by over 153 per cent to US$40 million. Net income in China soared 155 per cent, largely due to the cessation of depreciation or amortisation of long-lived assets classified as held for sale under US GAAP. Meanwhile, net loss for overseas business rose 166 per cent. 

In February, the company entered into a definitive agreement to divest its China business to Meituan. The transaction remains pending as of the latest announcement. 

Total revenues increased 8.6 per cent to $956.1 million, including an 8.3 per cent uplift in China and a 36.2 per cent increase overseas. Gross merchandise value (GMV) surged 11.8 per cent to $1.07 billion. 

CEO Song Wang said the company has maintained profitability under non-GAAP standards for 15 consecutive quarters and under GAAP standards for 10 consecutive quarters. It has also delivered year-over-year revenue growth for the 10th consecutive quarter.

Since July, the company’s business has entered peak season, with monthly GMV hitting a record high; during this period, single‑day GMV exceeded RMB 100 million multiple times and set a new record. 

Wang attributed the results to the growth in average monthly ordering users among loyal members and the increase in average monthly order frequency.