2021-06-30 Company Announcement

Dingdong Successfully Listed on NYSE, Marking the 9th IPO for VMS-Invested Companies this Year

Dingdong (Cayman) Limited (“Dingdong” or the “Company”, NYSE:DDL), a VMS invested company, has successfully completed its listing on the New York Stock Exchange on June 29, 2021 with a listing price of US$23.5 per ADS. Morgan Stanley, Credit Suisse and BofA Securities are the joint bookrunners and representatives of the underwriters. Dingdong will use the proceeds from IPO for market penetration and expansion, as well as investments in upstream procurement capabilities, technology and supply chain systems.

Established in 2017 in Shanghai, Dingdong is a leading 2C online grocery e-commerce company in China. It provides users and households with fresh produce, meat, seafood and other daily necessities directly through a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid. Dingdong embraces a user-centric philosophy and is committed to providing consumers a wide variety of quality products with speedy delivery services at attractive pricings. With a mission to “offer fresh groceries to every household as easy available as running water”, Dingdong’s total revenues tripled from RMB 3,880mil in 2019 to RMB 11,336mil in 2020, driven by a robust GMV growth.

As an investor of DingDong, we are delighted to witness the successful listing of the Company and are incredibly proud to see that the Company has such achievements in just four years. Vanessa Lee, Managing Director & Head of TMT and Consumer of VMS Group’s Private Equity Division, commented that “The fresh groceries industry is an enormous market processing high purchase frequency, low gross profit and high loss rate. Since the industry’s development in 2012 and after multiple rounds of innovations, the industry continues to develop and iterate to form a “the one who persists wins” environment. Changlin Liang, founder of Dingdong, has efficaciously grasped the Chinese consumers’ demand for high-quality products. Through various attempts of standardization and digital transformation, the Company enables and transforms the agricultural supply chain, from supply to end distribution. Mr Liang essentially revolutionizes the infrastructure development of the industry. Upstream farms and suppliers can now efficiently produce food closer to consumer needs and consumers can enjoy better quality of food. We are optimistic about Dingdong’s mission, business model and execution capabilities. We will continue to support its long-term development in order to benefit more consumers in China”.

China’s fresh groceries and daily necessities retail industry has experienced substantial growth in recent years, and is expected to continue to expand in the future. According to China Insights Consultancy, the size of China’s fresh groceries and daily necessities retail industry has grown at a CAGR of 7.2% from RMB 8.4 trillion in 2016 to RMB 11.1 trillion in 2020, and is forecasted to further grow at a CAGR of 6.5% to reach RMB 15.2 trillion by 2025. Spending in China continues to shift towards digital formats at an unprecedented speed and Dingdong’s mobile app and mini-program basically reshape consumers’ online shopping experience for groceries. We are optimistic about its technology, business model and potential, and will remain fully supportive of its rapid growth to benefit more users.

VMS Investment Fund II, LP participated in Dingdong’s series B4 and C1 rounds of financing in June 2020. This marks the ninth IPO for VMS-invested companies this year. We will continue to search for companies that are well-positioned to benefit from attractive industry trends for investments, to fulfill our commitment to generate superb return for our investors.

If you would like to hear the latest updates on the Firm and the Fund, please feel free to contact our Investor Relations team at IR@VMSIG.COM.

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