Dada Nexus Limited

Good morning, ladies and gentlemen, and thank you for standing by for DADA's Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded. I will now turn the meeting over to your host for today's call, Ms. Caroline Tong, Head of Investor Relations for DADA. Please proceed, Caroline.

Thank you, operator. Hello, everyone, and thank you for joining us today. Our third quarter 2020 earnings release was distributed earlier today and is available on our IR website, ir.imdata.cn, as well as on Global News Work Services. On the call today from Data, we have Mr. Philip Kwai, Chairman and Chief Executive Officer, Mr. Chun Yang, Co-Founder and the Chief Technology Officer, and Mr. Beck Chen, Chief Financial Officer. Mr. Kwai will talk about our operations and company highlights, followed by Mr. Chen, who will discuss the financials and the guidance. They will all be available to answer your questions during the Q&A session that follows. Before we begin, I would like to remind you that this conference call contains follow-up statements as defining the Section 21E of the Security Exchange Act of 1934 and the U.S. Security Litigation Reform Act of 1995. These follow-up statements are based upon management current expectations and current market and operating conditions. and relate to events that involve known or unknown risks, uncertainties, and other factors, all of which are difficult to predict and a matter of which are beyond the company's control. These risks may cause the company's actual results or performance to differ materially. Other information regarding these and other risks, uncertainties, or factors is included in the company's filing with the U.S. SEC. The company does not undertake any obligation or to update any forwarding statements as a result of new information, future events, or otherwise, except as required on the applicable law. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Quai. Please go ahead.

Thank you, Caroline, and thank you all for joining us today. We are pleased to report another strong set of results for the third quarter of 2020. Our total net revenue grew by 85% to $1.3 billion on a year-over-year basis. Our industry-leading position has been further strengthened with market share expansion and a widened gap compared with the second and the following players. According to iResearch, JDDJ maintains as the largest local on-demand retail platform in the China supermarket segment, with 24% market share in the first nine months of 2020. increased from 21% in 2019. DataNow maintains as the largest open on-demand delivery platform in China with 24% market share in the first nine months of 2020, increased from 19% market share in 2019. I'm very encouraged by our progress as we execute our strategy to penetrate into lower tier cities drive synergies between our two platforms, and continue to deliver on our mission to bring people everything on demand. I'll start with exciting highlights from this year's October 20th Supermarket Shopping Festival and Double 11's promotions, and then provide updates on the performance of our two platforms. And then back, we'll go into greater details about our financial and operating results. So let's begin. We hosted our sixth annual October 20th Supermarket Shopping Festival on DDDJ platform with active participation of retailer partners. The number of stores joined in this festival achieved historical records. For example, all stores of Walmart China and 120 stores covering all forms of Yonghui and more than 1,600 stores under the CR Vanguard's umbrella participated in the promotion. We were particularly pleased to see our efforts in lower tier cities pay off. During the October 10th promotions, our sales volume in the lower tier cities was 3.4 times more than that of the same period last year. In terms of our 2011 promotions, our DataNow platform covered more than 2,500 cities and the countries ensuring timely on-demand delivery for omni-channel promotions and it resulted in a new peak daily order volume record of over 10 million. There were over 100,000 stores participating in W11 promotion on CDBJ platform covering more than 1,200 cities and countries. GMV on JDDJ platform more than doubled on November 11th on the year-over-year basis. So both platforms, JDDJ and DataNow, achieved significant breakthroughs in terms of quality of partners, sales volumes, and overall performance. I will now give you some updates on our two platforms, JDDJ and DataNow. Let's start with JDDJ, China's leading local on-demand retail platform. Our fast growth during the quarter was driven by a number of factors. First, we continue to execute our growth strategy in terms of expansion in geographic coverage and category coverage. By leveraging the scale and the strengths of our retail partners and competitive advantages in terms of regional supply chain and branding, we newly entered 200 cities and countries during the quarter. At the end of the quarter, we now cover over 1,200 cities and countries, bringing more and more people everything on demand. In this Q3, GNV from lower-tier cities increased by over 170% year-over-year. We're also expanding our category coverage. For consumer electronics and smartphones, we have established partnerships with dozens of authorized retailers of Apple. and have launched exclusive online stores on DDDJ platform. The first iPhone 12 order on launching day was delivered to consumer within only 14 minutes. We will continue to digitize more smartphone brands, retail stores, and home appliance stores in the very near future. In terms of pharmaceuticals, JDDJ established partnership with more than 70 out of the top 100 drugstore chains in China, including all of the top 10 drugstore chains. For the fast-growing pet category, JDDJ covers a variety of subcategories, including food, toys, health care, and body care. We also established partnership with multiple well-known pet brands during the quarter as well. Second. We are enhancing our collaboration with retailers and brand owners. In terms of retailer partners, during the quarter, we established new partnerships with more than 20 leading supermarket chains, including those of the top 100 supermarket chains and original dominant players, such as Oya in Jilin Province, Zhenghua in Shandong Province, and Zhebei in Zhejiang Province. They're all local winners. JDDJ had worked with over two-thirds of the top 100 supermarket chains in China by the end of September, which is a further demonstration of our advantages as a pure platform. We only enable and empower our retailer partners and create value to them as a partner rather than competing with them. The overwhelming number of leading retailers on our JDDJ platform compared with other competitors also presents recognition from retailers. During the quarter, we also extended our strategic partnership with CR Vanguard in relation to omnichannel fulfillment, product assortment management, consumer insights, and marketing. During this quarter, our online marketing service revenue from brands continued to increase significantly by over 400% year-over-year. We extended strategic partnership agreements with leading brand partners, including PepsiCo, Nestle, Mars Weekly, and so on. We also continued to innovate marketing activities to create more values to brand partners. For example, our pioneered one-hour delivery for live streaming program has been very well received by more brands during this quarter. In addition, we partnered with brands to create innovative marketing activities to improve sales and marketing efficiencies. For example, Brand CP Day is a joint marketing promotion with brands. During the Brand CP Day of E. Lee and E. Hyde Carey, the sales doubled on the week-over-week basis. We're constantly developing innovative technology to empower retailers and brand partners. As of October 31st, 2020, Dada's Haibo omni-channel online retail operating system was adopted in over 1,500 large and medium-sized supermarket chain stores in China. We added new modules such as smart picking and a pack to optimize the order picking process, new category expansion assistant, and an open developer ecosystem module, which has been adopted by all merchants. Overall, our Hibor system enables merchants to efficiently integrate their offline systems and supports omnichannel execution while ensuring operation stabilities. Meanwhile, our CRM systems have been adopted by more than 35,000 stores compared to 30,000 stores as of end of Q2. In order to continue to empower our retailer partners and improve consumer satisfaction, we recently launched data cross-forcing picking service, also known as in Chinese. In addition to providing systematically recruiting, managing, and training services, data picking also delivers efficient tracking of picking quality and the personnel working status through the digital management of the entire process. We believe this will significantly improve the efficiencies of picking and the fulfillment process while reducing store personnel costs. We also deepened our collaboration with JD Retail on Woojin Tianzhe, the key omnichannel collaboration program. During the third quarter, the GMV of Woojin Tianzhe increased by over 470% on a quarter-over-quarter basis. Let's now move on to Dalai Now, the largest open on-demand delivery platform in China. First, I will touch on our 10 merchants business. We extended our collaboration with industry-leading catering, supermarkets, pharmaceuticals, and other chain brands, and upgraded our dedicated delivery services. The customized delivery service, also known as , dedicated delivery service served the leading chain restaurants, pharmaceuticals, and the fresh food chain retailers, And the revenue from our key account merchants increased by more than 200% year over year during the third quarter. And turning to the last delivery, we continue to benefit from enhanced synergies with JD Logistics as we further integrate our systems and delivery efficiencies. In addition to collaborating on delivery services with JD Logistics, We also expanded our partnership by launching pick-up service. The premium riders who have passed our training and events will be qualified to provide timely pick-up service for the requests on JD Logistics platforms. This value-add service will not only address challenges of frequent fluctuation of pick-up demands, based on the cross-sourcing model, but also significantly improve the user satisfaction based on the high quality services. So overall, we're very pleased with our progress during the quarter, and we think we have an exciting journey ahead as we execute our growth strategy. With that, I will now pass the call over to Baek Chien to go over our financial support for the quarter. Thank you.