Dada Nexus Limited

Good morning, ladies and gentlemen, and thank you for standing by for DADA's third 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 is being recorded. I will now turn the meeting over to your host for today's call, Ms. Caroline Dong, Head of Investor Relations for DADA. Please proceed, Caroline.

Thank you, Arbiter. Hello, everyone, and thank you for joining our first quarter 2023 earnings conference call. On the call today from data, 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 the consecutive translation will be provided. In case of any discrepancy between the original remarks and the translated version, statements in the original remarks should pre-vote. Before we begin, I'd like to remind you that this conference call contains flocking statements. Please refer to our latest Steve Harper Statement in the Earnings Press 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 Press List, which contains the reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please note that, unlike otherwise stated, all figures mentioned during this conference call are in RMB. It is now my pleasure to introduce our president, Mr. He. Jeff, please go ahead.

Thank you, Karen, and thank you all for joining us today. During the third quarter of 2023, data group was suspended, which impacted top-line growth and made further gains in operating efficiency. Our total revenues increased by 20, and adjust the net margin improved by 11 percentage points year-over-year. I will begin today's presentation with some updates on our cooperation with JD.com and our performance during the Double 11 Shopping Festival. Followed by our pricing highlights for our two platforms. I will then hand over to Bec, take you through our detailed financial results. First, let's discuss our cooperation with JD.com. In October, Dada Group and JD.com had an on-demand tele-industry conference. It seemed to help us within reach . And we had a five-year action plan in hosting consumption enable the tailors and create jobs. Specifically, in the next five years, JTBJ and Dada Lao M2 facilitated on-demand retail consumption of over 1 trillion RMB alone with our ecosystem partners. Share with the digital transformation of more than 2 million black and yellow stores. and they cumulatively create over 10 million flexible employee opportunities. This not only demonstrates our strong confidence in the potential of on-demand retail industry, but also our commitment in serving social responsibility. Getting.com and us will strengthen our base to achieve these goals. Next, I would like to provide some highlights from the results of the 2011 short inductive. For JDDJ, pick-pay GME reached an all-time high, and the GME throughout the promotion grew robustly, with multiple categories suggesting cheaper digit growth, including equal mom and baby products, home furnishing and convenience stores. For data now, orders were fulfilled on the peak day hit another record, high of 15 million. And the total order fulfilled reached 200 million during the promotion period. Let's move on to the operational highlights for our two platforms. Starting with JDDJ, the leading on demand retail platform in China. In the third quarter, we continue to strengthen and expand our partnerships with retailers and brands, and further enhance our capability in technology innovation. Starting with retailer of corporations, during this quarter, we continue to broaden and deepen our collaboration with retailers to enrich our product offerings. At the end of September, JDDJ has onboarded more than 400,000 retailer stores. In the supermarket category, we added more top supermarket chains to our platform and have now established partnerships with 93 out of the top 100 supermarket chains in China. After we log out, our delivery waiver campaigns include the majority of supermarkets across the country at the end of June 9. We saw a lot of increase in user engagement as evidenced by improvement in both retention the purchase frequency among our users in the supermarket category. We also made progress in our collaboration with major Canadian store chains, leading to GME generated by Canadian stores on our platform growing more than eight times year-on-year. consumer elections category. In the smartphone category, KDDJF participated in the launch of new Apple products for the fourth consecutive year. After the iPhone 15 series was officially launched for sale in September. Sales in the first two hours increased by 250 compared to the sales during iPhone 14W. In addition, Android brands such as Xiaomi, Oppo, and OnePlus was also left closed in the third quarter. For the computer and accessories specifically, GME increased by 60 year-on-year. This growth was attributable to our support for new brands, weekend marketing events, and our efforts to explore diverse shopping scenarios. Notably, brands such as Style, Xiao Tiancai, Genie experienced significant growth through during this quarter. We also continue to make progress in the home appliance and home furnishing category. In the home appliance subject category, we aim to serve diversified user needs by offering differentiated SKUs and compare them with B2C channels. offering constant experience of one-stop delivery and installation. In this quarter, we established new partnerships with major appliance brands such as Haixin and Changwei, and newly onboarded 8,000 home appliance stores on 12 platforms. As a result, GME of home appliances in China grew by 70 year-on-year. The home financing sector also saw a lot of growth, with GME increasing by nearly three times year-on-year. We established a new partnership with clients such as Li-Beng Shaoxing, achieving a breakthrough in our offering of painting services. In a parallel category, we recently signed a new partnership with a number of outdoor brands, including Sikaiqi, Pika, as well as underwear brands such as Dosevillian, Aimu, and Hongdou. luggage brands such as Moody. In the third quarter, GME of the apparel category increased more than five times year-on-year. For the liquor category, GME more than tripled year-on-year in the third quarter, driven by our continuous efforts to improve the supply of cold SKUs. Let's talk about JTTJ's progress on the pending cooperation with brands. As a pioneer and leader in auto marketing for brands, in September, we officially launched the Double 10 Billion Brands Plan, which aims to help more than 10 brands achieved sales of more than $1 billion and established a benchmark brand with sales of more than $10 billion on our platform in 2024. Our brand partner pool kept expanding. Recently, we formed partnerships with leading biogeo brands including Maotai and Yanghe. Being the first on-demand retail platform, they cooperated with. We also established a new partnership with select food brands, such as Yanjun Foods, and dairy brands, such as Liuchen and Jianai. We also continued to enhance our omni-channel outdoor marketing collaborations with brands, helping them reach users through multiple channels, both on and off JTBCS. Starting in September, we collaborated with brands such as Gui Ge, Aomiao, and Mijiajin to help them enhance the exposure while innovative offline campaigns such as dancing competitions. On the final day of the event in Shanghai, Hui Ge saw a remarkable 220 year-on-year increase in sales and a 58 increase in order volume.