Financial Performance - Total net revenues for Q3 2021 reached RMB2,121.9 million (US$329.3 million), a 47.2% increase from RMB1,441.2 million in Q3 2020[2] - Total GMV for Q3 2021 was RMB2,572.9 million (US$399.3 million), representing a 41.0% increase from RMB1,824.7 million in Q3 2020[2] - Revenue from online product sales increased by 48.1% to RMB2,078.2 million (US$322.5 million) in Q3 2021[7] - The number of orders fulfilled reached 28.7 million in Q3 2021, a 34.4% increase from 21.4 million in Q3 2020[2] - Total net revenues for the three months ended September 30, 2021, were RMB 2,121,932, representing a 47.2% increase from RMB 1,441,187 in the same period of 2020[31] - Sales of products through online platforms reached RMB 2,078,226 for the three months ended September 30, 2021, up from RMB 1,402,868, indicating a growth of 48.3%[31] Profitability and Loss - Non-GAAP net loss attributable to ordinary shareholders was RMB886.5 million (US$137.6 million) for Q3 2021, compared to RMB469.9 million in Q3 2020[12] - The net loss for the three months ended September 30, 2021, was RMB 973,726, compared to a net loss of RMB 482,776 for the same period in 2020, reflecting an increase in losses of 102.0%[31] - Non-GAAP loss from operations for the three months ended September 30, 2021, was RMB 883,532, compared to RMB 476,036 for the same period in 2020, indicating a 85.5% increase[33] - The company reported a total cost and operating expenses of RMB 3,092,664 for the three months ended September 30, 2021, which is a 60.0% increase from RMB 1,930,147 in the same period of 2020[31] - The net loss per share attributable to ordinary shareholders for the three months ended September 30, 2021, was RMB (1.41), compared to RMB (6.06) for the same period in 2020[31] - The company incurred fulfillment expenses of RMB 637,869 for the three months ended September 30, 2021, up from RMB 396,166 in the same period of 2020, marking a 60.9% increase[31] Cash Flow and Liquidity - As of September 30, 2021, cash and cash equivalents totaled RMB2,479.5 million (US$384.8 million), up from RMB1,041.5 million at the end of 2020[14] - The total cash flow from operations for the nine months ended September 30, 2021, was RMB (3,017,324), compared to RMB (1,017,258) for the same period in 2020, indicating a significant increase in cash outflow[34] - Net cash used in operating activities for the three months ended September 30, 2021, was RMB (669,215), compared to RMB (388,521) for the same period in 2020, representing an increase of 72.3%[35] - Net cash used in investing activities decreased significantly to RMB (68,592) for the three months ended September 30, 2021, from RMB (795,015) in the same period of 2020, a reduction of 91.4%[35] - Net cash provided by financing activities turned negative at RMB (247,508) for the three months ended September 30, 2021, compared to a positive RMB 898,298 in the same period of 2020[35] - Cash, cash equivalents, and restricted cash at the end of the period for September 30, 2021, was RMB 2,348,329, up from RMB 930,068 at the end of the same period in 2020, reflecting an increase of 152.5%[35] Assets and Liabilities - Total current assets increased from RMB 1,449,423 thousand as of December 31, 2020, to RMB 3,086,905 thousand as of September 30, 2021, representing a growth of 113%[29] - Total liabilities increased from RMB 3,069,281 thousand to RMB 3,592,387 thousand, reflecting a rise of 17%[29] - The accumulated deficit grew from RMB (9,387,528) thousand to RMB (12,700,814) thousand, indicating a deterioration of 35%[29] - Total assets increased from RMB 2,162,762 thousand to RMB 4,157,469 thousand, marking a growth of 92%[29] - Accounts payable surged from RMB 1,088,431 thousand to RMB 1,651,732 thousand, a rise of 52%[29] - Operating lease right-of-use assets increased from RMB 469,644 thousand to RMB 736,785 thousand, reflecting a growth of 57%[29] Shareholder Equity - Total shareholders' equity improved from RMB (9,435,665) thousand to RMB 565,082 thousand, a significant turnaround[29] - Non-controlling interest was recorded at RMB 8,899 thousand as of September 30, 2021, indicating the presence of minority interests[29] - The weighted average number of ordinary shares for the three months ended September 30, 2021, was 688,715,943, compared to 101,664,001 for the same period in 2020[33] Future Outlook - The company expects Q4 2021 net revenues to be between RMB2,232 million and RMB2,315 million, indicating a year-over-year growth of approximately 35% to 40%[15]

Financial Data and Key Metrics Changes - In Q2 2021, total revenue reached RMB1.9 billion, a year-over-year increase of over 40% [7][17] - Gross profit was RMB141.9 million, a decrease of 50.6% from RMB286.9 million in Q2 2020, with a gross margin of 7.5% [19] - Net loss was RMB1,433.2 million in Q2 2021, compared to a net loss of RMB339.8 million in Q2 2020 [22] - Cash and cash equivalents as of June 30, 2021, were RMB3,427.3 million, up from RMB1,041.5 million at the end of 2020 [23] Business Line Data and Key Metrics Changes - The on-demand Distributed Mini Warehouse (DMW) business had an average order value of RMB96.1, leading the industry [10] - Revenue from paid membership programs grew by approximately 240% year-over-year [9] - The intelligent fresh market business has entered contracts to operate 58 markets in 15 cities, with 34 already operational [12] Market Data and Key Metrics Changes - The company reported a 35% year-over-year increase in the number of new transacting users [9] - The average delivery time per order was 37 minutes, with 625 self-operated DMWs across 16 cities [8] Company Strategy and Development Direction - The company aims to become a leader in the digitalization of China's neighborhood retail industry through its three business pillars: DMW, intelligent fresh markets, and Retail Cloud [15] - The strategy includes enhancing supply chain capabilities and focusing on quality growth in first and second-tier cities [27][39] - The Retail Cloud business is designed to empower local retailers in lower-tier cities, facilitating their digital transformation [13] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, expecting Q3 2021 net revenue to be between RMB2,020 million and RMB2,090 million, representing a year-over-year growth of approximately 40% to 45% [24] - The company is well-prepared to respond to increased demand and has received positive recognition from local governments for its efforts during COVID-19 [34] Other Important Information - The company has established collaborations with Tencent for its Retail Cloud business, enhancing its technological capabilities [14] - The company is focusing on improving its product mix and increasing the proportion of FMCG products to enhance gross margin [37] Q&A Session Summary Question: Impact of regulatory tightening on business models - Management noted that the neighborhood retail market is massive and digitalization is accelerating, which positions the company well for future growth despite regulatory pressures [27] Question: Growth outlook beyond Q3 guidance - Management indicated that they expect continued acceleration in revenue growth, driven by increased spending and improved supply chain capabilities [30] Question: Challenges and opportunities from COVID resurgence - Management highlighted that the COVID situation is under control, and the trend towards online shopping is benefiting their business [33] Question: Strategies to increase average order value (AOV) - Management emphasized the importance of product mix and fulfillment experience to maintain a high AOV [44] Question: Competitive edge in the SaaS business - Management outlined their unique approach to empower clients rather than centralizing customer data, which differentiates their Retail Cloud offering [53]

Financial Performance - Total net revenues for Q2 2021 reached RMB1,894.5 million (US$293.4 million), a 40.7% increase year-over-year from RMB1,346.0 million in Q2 2020[2] - Total GMV for Q2 2021 was RMB2,313.7 million (US$358.3 million), representing a 35.4% increase from RMB1,708.4 million in Q2 2020[2] - The number of orders fulfilled in Q2 2021 reached 23.8 million, a 32.2% increase from 18.0 million in Q2 2020[2] - Average price per order increased to RMB96.1 (US$14.9) in Q2 2021, up 2.6% from RMB93.7 in Q2 2020[2] - Gross profit for Q2 2021 was RMB141.9 million (US$22.0 million), a decrease of 50.6% from RMB286.9 million in Q2 2020[10] - Net loss for Q2 2021 was RMB1,433.2 million (US$222.0 million), compared to a net loss of RMB339.8 million in Q2 2020[13] - Total net revenues for the three months ended June 30, 2021, were RMB 1,894,480, representing a 40.7% increase from RMB 1,346,048 for the same period in 2020[33] - Net loss for the three months ended June 30, 2021, was RMB 1,433,249, compared to a net loss of RMB 339,817 for the same period in 2020, indicating a significant increase in losses[33] - The company reported a total cost and operating expenses of RMB 3,388,157 for the three months ended June 30, 2021, which is an increase of 101.5% from RMB 1,682,799 in the same period of 2020[33] Cash and Liquidity - Cash and cash equivalents as of June 30, 2021, totaled RMB3,427.3 million (US$530.8 million), up from RMB1,041.5 million at the end of 2020[15] - Cash, cash equivalents, and restricted cash at the end of the period for June 30, 2021, totaled RMB 3,329,328, compared to RMB 1,252,770 at the end of June 30, 2020, reflecting a 165.5% increase[38] - The cash balance at the end of the period for June 30, 2021, was RMB 3,329,328, which is significantly higher than the previous year's balance of RMB 1,252,770, marking a substantial growth[38] - Net cash used in operating activities for the three months ended June 30, 2021, was RMB (698,021), compared to RMB (518,993) for the same period in 2020, representing a 34.6% increase[38] - Net cash provided by financing activities for the six months ended June 30, 2021, was RMB 3,768,944, up from RMB 1,480,683 in the same period of 2020, indicating a 154.5% increase[38] - The net cash used in operating activities for the six months ended June 30, 2021, was RMB (1,287,568), compared to RMB (745,622) for the same period in 2020, indicating a 72.5% increase[38] Operational Metrics - As of June 30, 2021, the company operated 625 Distributed Mini Warehouses (DMWs) across 16 cities, covering 208,283 square meters, an 11.0% year-over-year increase[5] - Fulfillment expenses for Q2 2021 were RMB541.0 million (US$83.8 million), reflecting an increase due to higher order fulfillment and operational enhancements[11] - The company incurred fulfillment expenses of RMB 540,990 for the three months ended June 30, 2021, which is an increase of 58.2% from RMB 342,202 in the same period of 2020[33] Shareholder Information - The company reported a total of 86,383,174 Class A ordinary shares outstanding as of June 30, 2021, compared to 75,555,520 as of December 31, 2020[31] - The weighted average number of ordinary shares used in calculating loss per share increased to 141,586,134 for the three months ended June 30, 2021, from 96,894,953 in the same period of 2020[36] - The net loss per share attributable to ordinary shareholders for the three months ended June 30, 2021, was RMB (11.29), compared to RMB (4.83) for the same period in 2020[36] Future Outlook - The company expects Q3 2021 net revenues to be between RMB2,020 million and RMB2,090 million, indicating a year-over-year growth of approximately 40% to 45%[17] - The company has not provided specific forward-looking guidance or projections in this announcement[28] - The company plans to continue expanding its market presence and investing in technology and content development to enhance operational efficiency and customer experience[35] Balance Sheet Highlights - As of June 30, 2021, total assets increased to RMB 4,900,445, up from RMB 2,162,762 as of December 31, 2020, representing a growth of approximately 126%[31] - Total current liabilities increased to RMB 3,151,571 from RMB 2,897,848, reflecting a rise of approximately 9%[31] - The accumulated deficit grew from RMB (9,387,528) to RMB (11,727,146), indicating an increase in losses of about 25%[31] - Total shareholders' equity shifted from a deficit of RMB (9,435,665) to a positive equity of RMB 1,443,601, showing a significant turnaround[31] - Operating lease liabilities, current, increased to RMB 322,444 from RMB 252,740, which is an increase of approximately 28%[31] - Long-term investments rose to RMB 62,776 from RMB 48,472, reflecting an increase of about 29%[31] - The total current assets reached RMB 3,902,297, up from RMB 1,449,423, representing an increase of approximately 170%[31] Non-GAAP Measures - Non-GAAP loss from operations for the three months ended June 30, 2021, was RMB 880,239, compared to RMB 322,360 for the same period in 2020, highlighting a worsening operational performance[36] - Share-based compensation expenses for the three months ended June 30, 2021, amounted to RMB 613,438, significantly higher than RMB 14,391 for the same period in 2020, indicating increased investment in employee incentives[36]