Dada Nexus Limited

Good morning, ladies and gentlemen, and thank you for standing by for DADA's first quarter 2023 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'll now turn the meeting over for your host for today's call, Ms. Caroline Dong, Head of Investor Relations for DADA. Please proceed, Caroline. Thank you, Caroline.

Thank you, operator. Hello, everyone, and thank you for joining our first quarter 2023 earnings conference call. On the call today from Dada, we have Mr. Jeff Huijianhe, president, and Mr. Back Chen, CFO. Mr. He will talk about our operations and company highlights. Then Mr. Chen will discuss the financials and guidance. Please kindly note that during the Q&A session, Jeff will answer questions in Chinese and a consecutive translation will be provided. In case of added discrepancy between the original remarks and the translated version, statements in the original remarks should prevail. Before we begin, I'd like to remind you that this conference call contains following statements. Please refer to our latest safe harbor statement in the earnings price list on our IR website, which applies to this call. Also, during this call, we will discuss certain non-GAAP financial measures. Please also refer to our earnings price list, which contains a reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please note that, unless otherwise stated, all figures mentioned during our conference call are in R&B. It is now my pleasure to introduce our president, Mr. He. Jeff, please go ahead.

Thank you, Caroline. And thank you all for joining us today. During this, the first quarter of 2023, Dada Group continued to deliver strong revenue growth while significantly improving our operating efficiency. Our total net revenues increased by over 27, and our adjusted net loss margin narrowed by over 16 percentage points year-over-year. Our database presentation was an update on our dependent a collaboration with JD.com, following which I will share the operational highlights from our two platforms. That will then take you through the detailed financial results. We continue to deepen our collaboration with JD.com in several areas. During the first quarter, CME of Shocknow, a sales school, the unified brand for all on-demand retail services within the JD ecosystem increased by 60 year-over-year. In particular, GME for nearby or Fuzhintab maintained the latest year-over-year growth. This was determined by continued increase in nearby DAU, as well as a higher conversion rate during the page with designs that made the shopping experience more efficient. Regarding search results, we also recently launched price-based stock ratings. The tool then highlights the most competitively-priced products. Through this feature, we have boosted traffic conversion and enhanced shop miles appear among JD users. as a shopping channel with competitive price and the fastest viewer. Let's move on to the operational highlights for our two platforms, starting with JDTJ, the leading on-demand retail platform in China. In the first quarter, JDTJ maintained the level of GME growth that significantly outpaced the last dollar-per-million Our high-quality growth is affected by our close cooperation with and technology commitment to our retailers and brand partners. Let's start with JDTJ's expanded and strengthened efforts to empower retailers. In the supermarket category, in terms of our cooperation with top supermarket chains, We recently signed a new partnership, such as Zhengzhou Chinese, and now we established a partnership with over 19 of the top 100 supermarket chains in China. In addition, we continue to extend the cooperation with leading convenience store chains. With stores from top brands such as Mijia, and food. Recently launched on our platform, we will be able to meet consumers' needs across more diversified shopping scenarios. Knowledge in supermarkets, merchandise chains, and our consumer insights. We continue to launch various campaigns to drive sales. Together with our supermarket partners, we launched the Weekend One Cent Shopping campaign. The campaign is designed to boost our user awareness of JDTJ's attractive price product, offering through targeted promotion of specific SKUs. The U.N. has significantly improved its chain sales and user engagement levels. For example, at the end of March, JD.D.J. collaborated with 19 supermarkets chains to launch the one-cent fresh meat campaign in Beijing. In the U.N., GMO fresh meat products in Beijing increased by more than 60 year-on-year, more than 30 percentage points higher than the overall GME growth rating in Beijing. In addition, the seven-day repeated purchase rate of participating consumers was seven percentage points higher than that of the city-wide user base. We also made further progress in the consumer electronics and home appliance category. In the computer and access to knowledge subcategory, we recently partnered with smart learning device brands, such as Xiao Tiancai and Youthbook. In the first quarter, GME from computer and accelerator leads, the chance increased by nearly 200 year-on-year. In the home appliance subject category, we sign up leading home appliance brands such as Haier and Midi to onboard and promote their offline stores on JDTJ, offering Customers differentiated product selection and the convenient one-stop delivery and installation services. In the first quarter, GME from home appraisal returns grew by nearly 200 year-on-year. In the apparel category, we have successfully expanded into the infant and children's apparel segment, and recently partnered with leading brands such as Yunshi and Balabala. In the first quarter, GMO apparel category increased nearly six-fold year-on-year. In the home and furniture category, we achieved breakthroughs in segments, including 19 hardware accessories and software. For example, we recently established a partnership with Opel, Vore, and Sears. In the first quarter, GME for home and furniture machines increased nearly fourfold year-on-year. Let's move on to JDDJ's efforts to empower brands. We continue to penetrate the various FMCG segments, helping brands increase their sales through auto oil channels. Food and Just Fuel released and signed partnerships with confectionery brands such as Shock Day, daily brands such as Adobe Echo, and personal care brands such as Adolf. Next, I will touch on our efforts to empower both retailers and the brands through technology innovation and digital transformation. Firstly, on Haibo, our omnichannel auto operating system for retailers. Our high-boss system just crossed 10,000 milestones in the number of stores deployed. In the first quarter, we successfully expanded high-boss services to commodities retailers with further penetrating categories such as supermarkets, convenience stores, and mom-and-baby stores. We also continued to upgrade HIBOS features to help machines improve auto-operating efficiency. For example, we introduced the automatic product launch function to HIBOS operation model to help our partners onboard new products more efficiently. Machines that tested this new model was able to list new products more than AT faster. Moving next to data picking. Digitized in-store picking services for the sellers. We continue to strengthen our cooperation with leading supermarkets such as Walmart and Sunflash to meet their labor needs in a flexible and cost-efficient manner. I will now turn to Dada Now, China's leading local on-demand delivery platform. For business progress, let's start with our CA, or Chairman Chen's, business. Despite the impact of COVID outbreaks in January, we still managed to optimize our services' quality and the surge of fulfillment rate increased by three percentage points year on year in the first quarter. In the supermarket cake category, we continued to work closely with partners such as Walmart and Sam's Club. We also set up new partnerships with supermarket chains such as Arby's. In the restaurant and beverage cake category, Our revenue increased by more than 40 year-on-year, among which revenues from beverage chains more than double year-on-year. We continue to provide dedicated support to beverage cases, such as Mac and Coffee and Hattie, and sign up our other beverage brands, such as Miesje Binsen, and . SME and C2C business. Thanks to the product offerings for SMEs and the C2C order sources, the number of orders fulfilled increased by more than 40 year-on-year in the first quarter. Our UAE continued to improve significantly, driven by our refined pricing strategy and improved our dispatching efficiency. Moving on to our last-mile services, we continued to leverage our flexible crowdsourcing network to provide steady support to JD Logistics supplementing its own delivery fleet. In the Chinese New Year shopping festival, we saw a significant year-on-year increase in our average daily orders for 4G logistics. Lastly, an update on Dada Now's autonomous delivery services. we continued to maintain our leading position in autonomous delivery for supermarkets. At the end of March 2023, Dadao's autonomous delivery open platform had prepared more than 100,000 on-demand delivery orders for supermarkets. Dadao's operations Operational updates for the two platforms. We continue to make steady progress in terms of both top-line revenue growth and bottom-line improvement during the first quarter. We have built up significant momentum to start the year based on our enriched product offerings. penetration in key categories, and improved user experience. We will leverage our strong partnerships with retailers and brands, our flexible LIDAR network, and our dependent alliance with JD.com to capitalize on new opportunities in the quarters to come. I will now pass the call to back to go through our financial results for this question. Thank you.