Financial Performance - The company incurred net losses of RMB1,705.2 million, RMB2,471.1 million, and RMB2,008.0 million (US$291.1 million) in 2020, 2021, and 2022, respectively [69]. - Net cash used in operating activities was RMB1,108.2 million, RMB2,657.6 million, and RMB945.4 million (US$137.1 million) in 2020, 2021, and 2022, respectively [69]. - The company has identified a material weakness in internal control over financial reporting, which was fully remedied as of December 31, 2021, and no material weaknesses were identified for the fiscal year ended December 31, 2022 [190]. - The company has historically restated consolidated financial statements for prior periods due to material accounting errors, emphasizing the importance of effective internal controls [189]. Revenue Sources - In 2020, 2021, and 2022, 38.6%, 13.9%, and 20.3% of net revenues were derived from services provided to JD Group, respectively [72]. - In 2020, 2021, and 2022, 13.8%, 20.2%, and 21.6% of net revenues were derived from services provided to Walmart Group, respectively [72]. - The VIE contributed 0.2% of the company's revenues in 2022, highlighting the potential impact of regulatory changes on financial performance [200]. Competition and Market Position - The company faces intense competition in the local on-demand retail and delivery markets, with competitors like Ele.me, Meituan Dianping, and SF Rush [75]. - The company’s ability to achieve profitability depends on improving market position, expanding online platforms, and maintaining competitive pricing [71]. - The company has experienced rapid growth in key metrics such as the number of riders, active consumers, GMV, daily delivery orders, and peak day order volume, but future growth rates are uncertain due to potential market saturation and competition [84]. Operational Challenges - The company has a limited operating history, making it difficult to predict future revenues and budget for costs accurately [62]. - The company relies on independent contractors for delivery services, which may face legal challenges regarding their classification, potentially leading to significant additional expenses and operational changes [81][83]. - The company must cost-effectively attract and retain retailers and merchants to maintain its business operations, as failure to do so could adversely affect results [86][87]. - The company relies on third-party applications and services for key business functions, and any disruptions could materially affect operations and financial results [138]. Technology and Infrastructure - The company relies on a scalable technology infrastructure that includes various systems for order management, pricing, and rider management, which are critical for business success [122]. - Continuous improvement and adaptation of technology systems are necessary to remain competitive in the rapidly evolving on-demand retail and delivery industries [126]. - Disruptions to technology systems could significantly impact the availability of services and overall business performance [121]. Regulatory Environment - The company faces complex regulations regarding data privacy and cybersecurity, with potential legal liabilities arising from data breaches or failures to protect customer information [97][98]. - Compliance with evolving data protection laws in China requires significant resources, and any failure to meet these obligations could result in legal consequences [100][102]. - The company is subject to the Network Data Security Management Regulations, requiring cybersecurity reviews for activities affecting national security, including listing abroad if processing over one million users' personal information [104]. - The evolving PRC regulatory system for internet-related businesses may result in new regulations that could disrupt the company's business model [229]. Labor and Employment - The average wage in China has increased in recent years, and labor costs, including wages and employee benefits, are expected to continue rising, potentially impacting profitability if these costs cannot be passed on to customers [233]. - If riders on the platform are reclassified as employees rather than independent contractors, labor costs could increase significantly, adversely affecting business operations [233]. - The company is subject to stricter regulatory requirements regarding labor contracts and employee benefits, which may limit operational flexibility and increase costs [236]. Intellectual Property and Legal Risks - The company has faced trademark infringement claims, including a settlement for the Dada trademark, which may lead to future liabilities [171]. - The evolving nature of China's intellectual property laws poses risks of liability and penalties for potential infringements [173]. - The company faces challenges in protecting its intellectual property rights, which could adversely affect its competitive position [175]. Strategic Growth and Acquisitions - Strategic alliances and acquisitions may not yield expected benefits and could divert resources from existing operations [178]. - The company may pursue strategic acquisitions that complement its business, but compliance with PRC regulations could delay these transactions [249]. Economic and Geopolitical Factors - Economic uncertainties, including the impact of COVID-19 and geopolitical tensions, may adversely affect the company's financial condition and operations [186]. - Heightened tensions in international relations, particularly between the United States and China, may adversely impact the company's business, financial condition, and results of operations [187]. Shareholder and Ownership Structure - As of March 31, 2023, JD Group held 53.0% of the company's outstanding ordinary shares, giving it significant control over shareholder actions [194]. - Conflicts of interest may arise due to JD Group's controlling ownership, potentially affecting business decisions and opportunities [191]. - The significant concentration of share ownership may adversely affect the trading price of the company's ADSs due to perceived conflicts of interest [195].

[Form 6-K: Supplemental Submission Regarding HFCAA](index=1&type=section&id=Form%206-K%3A%20Supplemental%20Submission%20Pursuant%20to%20Item%2016I%28a%29%20of%20Form%2020-F) This submission addresses the company's identification as a Commission-Identified Issuer under HFCAA and details its ownership structure [Identification as a Commission-Identified Issuer](index=2&type=section&id=Identification%20as%20a%20Commission-Identified%20Issuer) The company was identified as a Commission-Identified Issuer under HFCAA due to its auditor, a determination later vacated by the PCAOB - The company was conclusively identified by the SEC as a Commission-Identified Issuer on **May 26, 2022**, pursuant to the HFCAA[3](index=3&type=chunk) - The identification was triggered by the use of an auditor, **Deloitte Touche Tohmatsu Certified Public Accountants LLP**, in a jurisdiction where the PCAOB could not conduct complete inspections until it vacated its determination in **December 2022**[3](index=3&type=chunk) [Ownership Structure and Control Analysis](index=2&type=section&id=Ownership%20Structure%20and%20Control%20Analysis) The company asserts it is not government-controlled, citing its ownership structure primarily by JD Group and Walmart Entities - The company is controlled by JD Group, which beneficially owned **53.0%** of its outstanding ordinary shares as of **March 31, 2023**[4](index=4&type=chunk) - To the company's knowledge, no shareholder other than JD Group Entities and Walmart Entities beneficially owned **5%** or more of its shares as of **March 31, 2023**[4](index=4&type=chunk) - The company is not aware of any Chinese governmental entity having the power to direct its management and policies[7](index=7&type=chunk) [JD Group Entities Ownership](index=3&type=section&id=JD%20Group%20Entities%20Ownership) JD Group, a Nasdaq and HKEX-listed entity, is Dada's controlling shareholder, with its stake expected to increase to approximately 53.9% JD Group Ownership Stake | Metric | Value | As of Date / Timeframe | | :--- | :--- | :--- | | Ownership Percentage | 53.0% | March 31, 2023 | | Ordinary Shares Owned | 543,315,362 | February 22, 2022 | | Expected Ownership % | ~53.9% | Post-transaction (Apr/May 2023) | - In April 2023, the company agreed to issue **18,927,876** new ordinary shares to JD Group in exchange for traffic support, which will increase JD Group's stake[5](index=5&type=chunk) - JD Group Entities are not believed to be owned or controlled by a governmental entity of China[6](index=6&type=chunk) [Walmart Entities Ownership](index=3&type=section&id=Walmart%20Entities%20Ownership) Walmart Entities, wholly owned by US-based Walmart Inc., held a 9.3% stake and are not government-controlled Walmart Entities Ownership Stake | Metric | Value | As of Date | | :--- | :--- | :--- | | Ownership Percentage | 9.3% | March 31, 2023 | | Ordinary Shares Owned | 94,981,280 | June 9, 2020 | - Walmart Entities are not owned or controlled by a governmental entity of China. Walmart Inc. is a Delaware company listed on the NYSE[6](index=6&type=chunk)

Dada Nexus Ltd (NASDAQ:DADA) Q4 2022 Earnings Conference Call March 8, 2023 8:30 PM ET Company Participants Caroline Dong - Head, IR Jeff Huijian He - President & Director Beck Chen - CFO Conference Call Participants Ronald Keung - Goldman Sachs Group Thomas Chong - Jefferies Alicia Yap - Citigroup Andre Chang - JPMorgan Chase & Co. Operator Good morning, ladies and gentlemen, and thank you for standing by for Dada's Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]. I will now turn the ...

Dada Nexus, Inc. (NASDAQ:DADA) Q3 2022 Earnings Conference Call November 17, 2022 8:30 PM ET Company Participants Caroline Dong - Head, IR Jeff Huijian - President & Director Beck Chen - CFO Conference Call Participants Ronald Keung - Goldman Sachs Thomas Chong - Jefferies Alicia Yap - Citi Ashley Xu - Crédit Suisse Andre Chang - JPMorgan Chase & Co. Operator Good morning, ladies and gentlemen, and thank you for standing by for Dada's Third Quarter 2022 Earnings Conference Call. [Operator Instructions]. I w ...

Dada Nexus Limited (NASDAQ:DADA) Q2 2022 Earnings Conference Call August 22, 2022 9:30 PM ET Company Participants Caroline Dong - Head of Investor Relations Philip Kuai - Chairman & Chief Executive Officer Beck Chen - Chief Financial Officer Jeff Huijian - President Conference Call Participants Ronald Keung - Goldman Sachs Thomas Chong - Jefferies Eddie Leung - Bank of America Merrill Lynch Alicia Yap - Citigroup Andre Chang - JPMorgan Wei Xiong - UBS Operator Good morning, ladies and gentlemen and thank yo ...

Financial Data and Key Metrics Changes - Dada Group reported a total net revenue of RMB 2 billion for Q1 2022, reflecting a pro forma revenue growth of 74% year-over-year [22] - Non-GAAP net loss attributable to ordinary shareholders was RMB 481 million, with a non-GAAP net loss margin of 24%, showing an improvement of about 30 percentage points year-over-year [25] - Cash, cash equivalents, restricted cash, and short-term investments totaled RMB 4.6 billion as of March 31, 2022 [25] Business Line Data and Key Metrics Changes - Net revenue from Dada Now was RMB 623 million, driven by increased order volume for intercity delivery services [22] - JDDJ's net revenues increased by 80% to RMB 1.4 billion, attributed to a rise in GMV, active consumers, and average order size [23] - The GMV of JDDJ's supermarket category accelerated year-over-year, with partnerships established with 86 out of the top 100 supermarket chains in China [11] Market Data and Key Metrics Changes - The number of annual active users on JDDJ increased by 47% year-over-year to 67.9 million [10] - The average daily GMV during the April 15th Intra-City Shopping Festival exceeded that of last year's Double 11 shopping festival [9] - The contribution of JD channels to Dada's GMV in Q1 was over 50% [40] Company Strategy and Development Direction - Dada Group is focused on compliant operations while driving sustainable business growth, particularly in the context of the platform economy [5] - The company is enhancing its cooperation with JD.com, improving product performance and brand marketing initiatives [38] - Dada is committed to expanding its geographic coverage and improving user experience through app design and operations [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but expressed confidence in the recovery of business operations [30] - The company anticipates that the competitive landscape will become more rational post-COVID, benefiting strong players in the market [38] - For Q2 2022, Dada expects total revenue between RMB 2.25 billion and RMB 2.35 billion, representing a pro forma growth rate of 59% to 66% [26] Other Important Information - Dada has implemented various support measures for riders and merchants during the pandemic, including subsidies and delivery capabilities [6] - The company has launched new marketing campaigns to promote products based on consumption trends, contributing to sales growth [14] Q&A Session Summary Question: Impact of COVID on business and growth expectations for JDDJ - Management noted that while COVID outbreaks have affected operations, they have been approved as a key company for daily supplies, and business is recovering quickly [29][30] Question: Long-term outlook post-COVID and competitive landscape changes - Management expects a more rational competitive environment post-COVID, with smaller competitors facing challenges, while basket sizes continue to grow [38] Question: Contribution of JD channels to GMV - JD channels contributed over 50% to Dada's GMV in Q1, with expectations for continued growth [40] Question: Unit economics for JDDJ and revenue trends - Management indicated that JDDJ is on track to achieve positive direct margins in Q2, with expectations for continued revenue growth [43][44] Question: Advertising yield and monetization rate outlook - Advertising revenue grew by 180% year-over-year, with expectations for continued growth in monetization rates [65][66]

Dada Nexus Limited (NASDAQ:DADA) Q4 2021 Earnings Conference Call March 8, 2022 8:00 PM ET Company Participants Caroline Dong - Head, Investor Relations Philip Kuai - Chairman & Chief Executive Officer Beck Chen - Chief Financial Officer Jun Yang - Co-Founder & Chief Technology Officer Conference Call Participants Ronald Keung - Goldman Sachs Eddie Leung - Bank of America Thomas Chong - Jefferies Alicia Yap - Citigroup Ashley Xu - Credit Suisse Andre Chang - JPMorgan Wei Fang - Morgan Stanley Wei Xiong - UB ...

Dada Nexus Limited (NASDAQ:DADA) Q3 2021 Earnings Conference Call November 23, 2021 8:00 PM ET Company Participants Caroline Dong - Head, Investor Relations Philip Kuai - Chairman and CEO Beck Chen - Chief Financial Officer Jun Yang - Co-Founder and CTO Conference Call Participants Ronald Keung - Goldman Sachs Eddie Leung - Bank of America Thomas Chong - Jefferies Alicia Yap - Citigroup Ashley Xu - Credit Suisse Wei Xiong - UBS Robin Leung - Daiwa Operator Good morning, ladies and gentlemen. Thank you for s ...