Dingdong Maicai, a Chinese fresh food e-commerce platform, announced on Monday that its board of directors had approved a stock repurchase plan, under which the company may repurchase up to $30 million of its shares over a designated period ending December 19, 2022.
The company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, either through block trades or other legal means, depending on market conditions and regulations.
Dingdong Maicai’s board of directors will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The company expects to fund the repurchases with its existing cash balance.
As of September 30, 2021, Dingdong Maicai’s cash, cash equivalents, restricted cash and short-term investments totaled around $1.1 billion.
Previously, Dingdong Maicai released its third quarter performance report as of September 30, 2021, showing total revenue of 6.2 billion yuan ($960.6 million) during the period, a year-on-year increase of 111%. Meanwhile, overall GMV increased by 107.7% year-on-year to 7.02 billion in the third quarter. Even in the relatively mature markets of the Yangtze River Delta region, the company’s GMV still increased by 64.8% year-on-year in the third quarter.
The grocery-based e-commerce platform’s net loss was 2.01 billion yuan in Q3, an increase of 142.65% compared with the net loss of 828.6 million yuan for the same period in 2020.