Dada Nexus Limited

Good morning, ladies and gentlemen, and thank you for signing by for DADA's fourth quarter 2020 earnings conference call. At this time, all participants are in 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 our host for today's call, Ms. Caroline Dahl, Head of Investor Relations for DADA. Please proceed, Caroline.

Thank you, operators. Hello, everyone, and thank you for joining us today. Our fourth quarter 2020 earnings release was distributed earlier today and is available on our IR website at irmdata.cn, as well as on global newsreel services. On the call today from Data, we have Mr. Philip Kwai, Chairman and Chief Executive Officer, Mr. Jun Yang, Co-Founder and the Chief Technology Officer, and Mr. Back Chen, Chief Financial Officer. Mr. Kwai will talk about our operations and company highlights, followed by Mr. Chen, who will discuss the financials and guidance. They will all be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains following statements as to defining the Section 21E of the Securities Exchange Act of 1934 and the U.S. Privileged Securities Litigation Reform Act of 1995. These following statements are based upon management's 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. This risk may cause the company's actual results or performance to deform maturely. Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the US SEC. The company does not undertake any obligation to update any forwarding statement as a result of new information, future events, or otherwise, except as required under applicable law. It is now my pleasure to introduce our Chairman and Chief Executive Officer, Mr. Quai. Philip, please go ahead.

Thank you, Caroline, and thank you all for joining us today. We're very pleased to deliver another extraordinary quarter and outstanding physical year. Our total net revenue of 2020 reached $5.7 billion with 85% year-over-year growth rate. Our industry-leading position has been further strengthened with market share expansion and a widened gap with the second and the following players. According to iResearch, JDDJ continued to be China's largest local on-demand retail platform in 2020, with market share increasing to 25% from 21% in 2019. In the meantime, Dada now remains as the largest open on-demand delivery platform in China, with market share increasing to 25% from 19% in 2019. I will provide updates on the performance of our two platforms and in fact we will go into greater details about our financial and operating results. Let's first talk about JDDJ, China's leading local on-demand retail platform. JDDJ's fast growth in the fourth quarter was driven by four main factors. We have been constantly expanding our geographic coverage, especially in lower tier cities, and further diversified category coverage to provide more product offerings in more categories on demand. Leveraging on the leading and expandable supply chain advantages of our retail partners and our continuously growing retail partner base, we entered another 200 cities and counties during the quarter. At the end of 2020, we covered around 1400 cities and counties, bringing more and more people everything on demand. We believe there is still tremendous potential in lower tier cities. For example, GMV in lower tier cities increased by 150% year-over-year during this quarter. We also expand and enrich our category coverage with our mission to bring people everything on demand. During this quarter, we achieved breakthroughs in cosmetics while making great progress on consumer electronics and smartphones. In the cosmetics and personal care categories, we have established in-depth partnerships with Watson's, Manning's, Innisfree, and other beauty and personal care chains and brands. More than 3,400 beauty stores have now been listed on JDDJ. As for consumer electronics and smartphones, JDDJ established in-depth partnerships with Dixing Tong, JD Home Appliance Stores, and Avivo. Altogether, over 6,000 stores have been listed on the JDDJ platform. Second, we are continuously enhancing the cooperation with our retailer and brand partners. In terms of retailer partners, in this quarter, we've established partnerships with over 20 leading supermarket chains, such as Huangshan supermarket in Hubei province, and Deli department store in Anhui province, Wankelong in Zhejiang province, and Huihe supermarket in Shandong province, all among the top 100 supermarket chains and original dominant players in China. As of today, we have established partnerships with 71 of the top 100 supermarket chains in China. As we enable and empower retailers and create value for them as a partner rather than competing directly with them, the overwhelming number of leading retailers on our JDDJ platform compared with our competitors clearly demonstrate our competitive edge. Partnering with nationwide leading supermarket chains, JDDJ has launched brand new promotional campaigns called Super Merchant Day during this quarter. The new IP events will help retailers improve sales, expand customer base, and enhance brand influence. This initiative has achieved success in 12 cases. For example, During the first Super Merchant Days launched for Zhongbai Warehouse supermarket in the first weekend of December, their sales improved by more than 12 times over their regular weekend sales. In light of the exceptional results, we are rolling out this campaign to more leading supermarket chains. As you might recall, we launched the data picking cross-sourcing service for retailers in the third quarter to improve the efficiency of the picking and the fulfillment process. During Q4, data picking has provided omnichannel order picking service to more supermarket stores, increasing their picking efficiencies by 24% and lowering picking costs by 24% in some typical stores. We also expanded the number of pharmaceutical chains in the first quarter and have now established a partnership with more than 80 out of the top 100 pharmaceutical chains in China. In terms of brand partners, during this quarter, our online marketing service revenue from brands continued to gain momentum, increasing by around 300% year-over-year. We continue to innovate marketing activities to create more values for brand partners. During the 2012 promotional season, many leading brands, such as Yili, Mengnuo, Henan, and Fulingmen, increased their sales multiple times versus the same period of last year. To meet the surging demand in cosmetics, we launched a joint promotion program with Unilever and P&G during the 2011 festival. Sales were more than 10 times that of the same period of last year. During the quarter, JDDJ also extended its strategic cooperation with certain brand owners. For example, we established a live streaming collaboration agreement with Indeliver and deepened collaboration with Pepsi to launch joint marketing campaigns during the Chinese New Year promotion. And third, we continue to develop innovative knowledge to empower our retailers and brand partners As of the end of February, Dada's Haibo omnichannel online retail operating system has now been adopted by over 2,200 large and medium-sized supermarket chain stores in China. During the quarter, we added and upgraded modules in our Haibo system, For example, the new heatmap module provides the distribution of orders across communities within a particular delivery radius, which allows supermarket stores to launch targeted offline promotions and attract new customers more efficiently. We provided an omni-channel fulfillment solution that integrates warehousing, picking, and delivery in a systematic, digitized, and standardized fashion. which has significantly improved operating efficiencies and reduced cost. On average, our hybrid system increased the number of products promoted online by six times and promoted SKUs as a percentage of total online SKUs offered in the store, or twice, as it appears. Labor efficiencies for product management and promotion management increased by 10 times and 12 times, respectively. And accuracy rate of account reconciliation was boosted to 99.99%. Fourth, we deepened our collaboration with JD.com on Woojin Tianze, the key omnichannel collaboration program. We added more traffic entry points for Woojin Tianze. So now, in addition to search result page on JD app, this program can be accessed through the home page and the JD supermarket channel of JD.com. The Woojin Canada program was also expanded to more categories beyond groceries, such as consumer electronics and smartphones, parenting, personal care, and cosmetics, providing JD platform users with more product options for a one-hour delivery service. Finally, JD and JD DJ's Johnson the joint marketing efforts during shopping festivals, such as Double 11 and Double 12, as well as Albany Channel weekend promotions. So let's now move on to DataNow, the largest open on-demand delivery platform in China. So first, for our chain merchant business, we continue to collaborate with industry-leading supermarkets, pharmaceuticals and catering chains in the fourth quarter. Revenue from chain merchants in the fourth quarter increased by 130% year-over-year. One success story to highlight is Sam's Club. Three years ago, Dada now entered into a collaboration agreement with Sam's Club to provide intra-city delivery service, allowing Sam's Club members to enjoy a premium and convenient shopping experience. To date, our dedicated delivery service covered 100 SEMS Cloud warehouse and all of its omni-channel orders, including those from GDDJ, from the SEMS Cloud app, and the mini program. The average daily delivery orders volume per warehouse has now surged more than 10 times since initiating the partnership. And turning to the last mile delivery, we further extended our geographic coverage to more lower tier cities. At the end of 2020, we covered 2,700 cities and counties. So overall, we're pleased with our progress during the quarter and excited about the journey ahead as we execute our growth strategy. We look forward to generating sustainable long-term value for our shareholders as we navigate a new era in China's retail industry. With that, I will now pass the call over to Jack Chen to go over our financials for the quarter. Thank you.