Missfresh(MF) - 2021 Q2 - Quarterly Report

Financial Performance - Total net revenues for Q2 2021 reached RMB1,894.5 million (US$293.4 million), a 40.7$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$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$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]