Investment Rating - The investment rating for Dada Group (DADA US) is Neutral, with a target price adjusted to $1.40, indicating a potential downside of 10.8% from the current price of $1.57 [4][9]. Core Insights - The report highlights that Dada Group is experiencing short-term impacts from business adjustments, but the performance in JD's ecosystem is strong, laying a foundation for long-term growth [3][4]. - For Q3 2024, Dada Group reported revenues of 2.4 billion RMB, a year-on-year decline of 7%, which was better than market expectations. Dada Express saw a revenue increase of 39% due to higher delivery volumes from chain brands, while JD's same-day delivery revenue fell by 40% due to a decline in advertising revenue and reduced fulfillment service income [1][2][3]. Summary by Sections Q3 2024 Performance - Total revenue was 2.4 billion RMB, down 7% year-on-year, exceeding expectations by 3% [1]. - Dada Express revenue increased by 39% year-on-year, driven by increased delivery volumes from chain brands [2]. - JD's same-day delivery revenue decreased by 40%, attributed to a drop in advertising revenue and lower fulfillment service income [1][2]. Operational Highlights - JD's same-day delivery saw a 100%+ year-on-year increase in average monthly active users and order volume, with peak daily orders during the Double Eleven shopping festival [2]. - Dada Express completed orders and gross revenue increased by 36% and 33% year-on-year, respectively, due to improved pricing competitiveness and operational efficiency [2]. Outlook and Valuation - The report anticipates that adjustments in JD's same-day delivery business will continue until 2025, with uncertainties regarding revenue from marketing monetization impacting forecasts [3]. - The revenue forecast for 2025-2026 has been adjusted downwards primarily due to uncertainties in advertising monetization, leading to an expected loss of 430 million RMB in 2025 and 245 million RMB in 2026 [3][11].

Financial Data and Key Metrics Changes - In Q3 2024, the company reported accelerated high-quality growth, indicating a positive trend in financial performance [6]. Business Line Data and Key Metrics Changes - Specific details regarding the performance of different business lines were not provided in the available content [6]. Market Data and Key Metrics Changes - The content does not include specific market data or key metrics changes [6]. Company Strategy and Development Direction and Industry Competition - The company is focusing on high-quality growth, which suggests a strategic emphasis on sustainable and profitable expansion [6]. Management's Comments on Operating Environment and Future Outlook - Management highlighted the acceleration of growth in Q3 2024, reflecting confidence in the company's operational performance and market position [6]. Other Important Information - The conference call included a reminder about forward-looking statements and non-GAAP financial measures, indicating a focus on transparency and compliance [4]. Q&A Session Summary - The content does not provide specific questions and answers from the Q&A session [6].

Core Insights - Dada Nexus Limited reported a year-on-year growth in monthly transacting users and orders through the JD App, with both increasing by over 100% in Q3 2024, reflecting strong customer engagement and trust [2][6] - The company achieved a 46% year-over-year revenue increase for Dada NOW in the first nine months of 2024, driven by enhanced partnerships with chain merchants and improved delivery service quality [2][6] - Total net revenues for Q3 2024 were RMB 2,429.4 million, a decrease from RMB 2,621.8 million in Q3 2023, indicating challenges in certain revenue streams [3][6] Financial Performance - The net revenues generated from JD NOW decreased to RMB 930.2 million in Q3 2024 from RMB 1,540.3 million in Q3 2023, primarily due to a decline in online advertising and fulfillment services revenues [6][9] - Dada NOW's net revenues increased by 38.6% from RMB 1,081.6 million in Q3 2023 to RMB 1,499.2 million in Q3 2024, mainly attributed to a rise in order volume for intra-city delivery services [6][9] - Total costs and expenses for Q3 2024 were RMB 2,656.7 million, down from RMB 2,862.6 million in Q3 2023, reflecting improved operational efficiency [7][8] Loss Metrics - The loss from operations was RMB 226.8 million in Q3 2024, compared to RMB 210.5 million in Q3 2023, indicating ongoing challenges in achieving profitability [9][10] - The net loss for Q3 2024 was RMB 197.3 million, up from RMB 166.0 million in the same quarter of the previous year [9][10] - Non-GAAP net loss for Q3 2024 was RMB 59.4 million, compared to RMB 9.2 million in Q3 2023, highlighting the impact of operational challenges [10][26] Operational Highlights - The number of orders delivered in Q3 2024 was 477.7 million, with gross billings amounting to RMB 2,323.1 million, reflecting the scale of operations [11][11] - The company has implemented a "Riders' Children Care Program" to support the families of delivery riders, enhancing its social responsibility initiatives [12][13] - Dada has launched various rider care activities in nearly 70 cities, focusing on improving the well-being of riders and fostering community engagement [13][13]

Core Viewpoint - Dada Nexus Limited, a leading local on-demand retail and delivery platform in China, is set to release its unaudited financial results for Q3 2024 on November 13, 2024, after U.S. market close [1]. Group 1: Financial Results Announcement - The unaudited financial results for the third quarter ended September 30, 2024, will be announced on November 13, 2024 [1]. - A conference call to discuss the earnings will take place at 8:30 p.m. Eastern Time on the same day [2]. - Participants must register in advance for the conference call and will receive details including dial-in numbers and a unique access PIN [2]. Group 2: Company Overview - Dada Nexus Limited operates JD NOW, one of China's largest local on-demand retail platforms, and Dada Now, a leading local on-demand delivery platform [4]. - The two platforms are interconnected, with JD NOW increasing order volume for Dada Now, while Dada Now enhances the delivery experience for JD NOW participants [4].

Group 1 - Chinese stocks, including Dada Nexus, experienced a rally following a surprise 50-basis-point rate cut by the People's Bank of China, with Dada Nexus stock rising by 5% after an earlier gain of 15.5% [1] - The Shanghai Composite index surged by 8.1%, marking its best single-day performance since 2008, driven by traders positioning themselves ahead of a weeklong holiday and a positive response to a recent stimulus package [2] - The central bank's directive for banks to lower mortgage rates on existing home loans is aimed at supporting the struggling property market in China, further fueling the stock market rally [2] Group 2 - Dada Nexus specializes in on-demand retail and delivery services and has a close partnership with JD.com, which holds a majority stake in the company [2] - JD.com received a price-target increase from Citigroup, raising its target from $41 to $52, and maintains a buy rating, reflecting investor optimism about its growth potential [3] - The recent market rebound in China is seen as unpredictable, with concerns about the effectiveness of the stimulus package and ongoing economic weaknesses, suggesting that while exposure to China may be beneficial, a diversified portfolio is advisable [4]

Group 1 - Dada Nexus experienced a significant stock price increase of nearly 22% following the sale of shares by Walmart's subsidiary to JD.com, while the S&P 500 index remained flat during the same session [1] - Walmart's Global Pinnacle Corporation divested approximately 87.5 million ordinary shares and nearly 1.9 million American depositary shares (ADS) of Dada, representing over 9% of Dada's equity [2] - JD.com increased its majority stake in Dada to over 63% after the acquisition, indicating strong confidence in Dada's potential [2][3] Group 2 - The CEO of Walmart's China division, Christina Zhu, stepped down from Dada's Board of Directors immediately following the divestment [2] - The recent divestment by Walmart mirrors a previous sale of a similar stake in JD.com, suggesting a strategic shift in Walmart's approach to the Asian market [3] - JD.com's acquisition of Dada shares reflects its confidence in the growth prospects of the Chinese delivery market [3]

Investment Rating - The investment rating for Dada Group (DADA US) is Neutral [2][7]. Core Insights - The company's revenue for Q2 2024 was 2.35 billion RMB, a year-on-year decrease of 9.5%, with Dada Express revenue increasing by 47% due to higher delivery volumes from chain brands. JD Instant Delivery revenue fell by 44% due to a decline in advertising revenue and reduced fulfillment service income [1][5]. - The adjusted net loss for Q2 2024 was 140 million RMB, with a loss rate of 6%, which was better than Bloomberg's market expectation of a 200 million RMB loss [1][5]. - The operational cost ratio increased to 74% from 58% year-on-year, primarily due to rising rider costs from increased local delivery volumes [1][5]. Summary by Sections Financial Performance - For Q2 2024, total revenue was 2.35 billion RMB, down 10% from the previous quarter and down 9.5% year-on-year. Dada Express revenue was 1.44 billion RMB, up 47% year-on-year, while JD Instant Delivery revenue was 912 million RMB, down 44% year-on-year [5][6]. - The adjusted net profit margin for 2024 is projected to be approximately -7.4%, with an expected total loss of 710 million RMB [4][6]. Operational Highlights - JD Instant Delivery saw a 100%+ year-on-year increase in average monthly users and order volume, with peak daily orders reaching new highs. The user penetration rate in JD's ecosystem continues to improve [2][5]. - Dada Express completed orders and gross revenue increased by 21% and 23% year-on-year, respectively, as the company deepens partnerships with key accounts in the restaurant sector [2][5]. Outlook and Valuation - The company is expected to continue facing challenges in revenue growth due to adjustments in JD Instant Delivery's business model. Revenue is projected to decline by approximately 10% in Q3 2024, with Dada Express revenue expected to grow by 40% year-on-year [2][4]. - The target price has been adjusted down to 1.50 USD from 1.70 USD, reflecting a 13.6% potential upside from the current price of 1.32 USD [2][7].

Financial Data and Key Metrics Changes - Dada Group's total net revenues in Q2 2024 were RMB2.3 billion, with a year-on-year change primarily due to adjustments in the JD NOW business [5][24] - Non-GAAP net loss in Q2 was RMB142 million, improving sequentially by RMB53 million, with a non-GAAP net loss margin of 6.1%, narrowing by 1.8 percentage points [6][26] - Net revenues from JD NOW were RMB912 million, while Dada NOW revenues increased by 47% year-on-year to RMB1.4 billion [6][24] Business Line Data and Key Metrics Changes - JD NOW saw over 100% year-on-year growth in monthly transacting users and orders through the JD App [5] - Dada NOW's net revenues for the first half of 2024 increased by 51% year-on-year to RMB2.6 billion, driven by new customer expansion and increased penetration among existing partners [6][20] - The number of orders delivered by Dada NOW rose 21% year-on-year to 679 million in Q2 [19] Market Data and Key Metrics Changes - The average daily unique visitors through the JD App increased by over 70% year-on-year, with the user conversion rate up over 20% year-on-year [15] - The number of high-frequency users with the JD App channel increased by over 100% year-on-year [16] - JD NOW's average daily paid order volume increased by over 50% year-on-year in Q2 [17] Company Strategy and Development Direction - The company remains committed to high-quality growth, focusing on user experience and supply enhancement for JD NOW and Dada NOW [22] - Dada NOW is undergoing a brand upgrade to strengthen its image as a high-speed, high-quality delivery service provider [36] - The strategy includes deepening cooperation with JD.com to enhance user penetration and mindshare growth [47] Management's Comments on Operating Environment and Future Outlook - Management noted a stable recovery in consumer confidence, with online sales of physical goods growing by 6.4% year-on-year in Q2 [29] - The company anticipates that adjustments made earlier in the year will lead to sustainable high-quality growth in the long run [38] - Management expressed confidence in achieving breakeven and profitability in the long term, supported by strong growth in the restaurant and beverage sectors [46] Other Important Information - The company had RMB3.6 billion in cash and cash equivalents as of June 30, 2024, and had repurchased approximately USD9.8 million of ADSs as part of a USD 40 million share repurchase program [26] - The company has expanded its geographic coverage for JD NOW services nationwide, enhancing service availability for JD.com users [48] Q&A Session Summary Question: Update on consumer sentiment and competitive landscape - Management reported a stable recovery in consumer confidence, with online sales growth reflecting this trend [29] - JD NOW is gaining market share due to its integration with JD.com and expansion of high-quality supply [31] Question: User consumption patterns and pressure on take rates - Management noted that the supermarket category is stable, while non-supermarket categories are experiencing higher growth rates [40] - The company is actively collaborating with convenience store brands to meet consumer needs [39] Question: Financial guidance and cooperation with JD - Management indicated that JD NOW's GMV faced short-term challenges but is expected to improve with strategic adjustments [43] - The company aims to penetrate a significant portion of JD's user base, with ongoing efforts to enhance user experience [49]

Core Insights - Dada Nexus Limited reported its financial results for Q2 2024, highlighting a focus on user experience and high-quality development, with significant growth in user metrics and revenue from its JD NOW and Dada NOW platforms [2][3]. Financial Performance - Total net revenues for Q2 2024 were RMB 2,349.9 million, a decrease of 9.5% compared to RMB 2,596.8 million in Q2 2023 [3][5]. - JD NOW generated net revenues of RMB 912.4 million in Q2 2024, down from RMB 1,616.4 million in Q2 2023, primarily due to reduced online advertising and fulfillment service revenues [4][7]. - Dada NOW saw a revenue increase of 46.6% year-on-year, reaching RMB 1,437.5 million in Q2 2024, driven by higher order volumes from chain merchants [4][5]. Cost Structure - Total costs and expenses in Q2 2024 were RMB 2,667.0 million, down from RMB 2,804.1 million in Q2 2023 [5][6]. - Operations and support costs rose to RMB 1,735.7 million, attributed to increased rider costs due to higher order volumes [6]. - Selling and marketing expenses decreased to RMB 781.9 million, reflecting reduced promotional activities on the JD NOW platform [6]. Profitability Metrics - The company reported a loss from operations of RMB 310.5 million in Q2 2024, compared to a loss of RMB 197.0 million in Q2 2023 [7]. - Non-GAAP net loss was RMB 142.3 million in Q2 2024, a significant decline from a net income of RMB 8.4 million in Q2 2023 [7][28]. - Basic and diluted net loss per ordinary share was RMB 0.27 in Q2 2024, compared to RMB 0.15 in Q2 2023 [7][29]. Operational Highlights - The number of orders delivered increased to 679.2 million in Q2 2024, up from 562.8 million in Q2 2023 [9]. - Gross billings for on-demand delivery services reached RMB 3,008.0 million in Q2 2024, compared to RMB 2,446.9 million in Q2 2023 [9]. Strategic Initiatives - The company is committed to enhancing customer experience and sustainable growth, as indicated by its ongoing focus on high-quality development strategies [2][3]. - Dada has initiated a US$40 million share repurchase program, with approximately US$9.8 million repurchased as of June 30, 2024 [9]. ESG Efforts - Dada published its 2023 ESG Report, marking its third consecutive year of reporting on environmental, social, and governance practices [10]. - The company launched initiatives to promote green products and support delivery riders, including a partnership to provide free cold drinks and health products [11].

SHANGHAI, China, Aug. 20, 2024 (GLOBE NEWSWIRE) -- Dada Nexus Limited (NASDAQ: DADA, “Dada” or the “Company”), China’s leading local on-demand retail and delivery platform, today announced that the board of directors (the “Board”) has elected Mr. Kevin Qing Guo to become a director and a member of the compensation committee of the Board and succeed Mr. Ian Su Shan as the chairman of the Board, effective August 20, 2024. Mr. Ian Su Shan will continue to serve as a director of the Company and a member of the ...