2023-03-24 08:39Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 219,954,948, representing a 22.8% increase from RMB 179,127,997 in 2021[4] - Adjusted EBITDA for the year was RMB 9,724,589, compared to a loss of RMB 9,694,076 in the previous year[4] - The company reported a net loss of RMB 6,685,323 for the year, an improvement from a loss of RMB 23,536,198 in 2021[4] - The adjusted net profit for the year was RMB 2,827,245, compared to a loss of RMB 15,571,500 in the previous year[4] - The company’s operating loss for the year was RMB 5,820,448, significantly reduced from RMB 23,127,199 in 2021[4] - The adjusted EBITDA margin improved to 4.4% for the year, compared to a negative margin in the previous year[4] - The company achieved an adjusted EBITDA of RMB 9.7 billion and a net adjusted profit of RMB 2.8 billion in 2022, marking a turnaround from losses[13] - The total loss for the year was RMB 6.7 billion in 2022, compared to a loss of RMB 23.5 billion in 2021[68] - The company reported a basic and diluted loss per share of RMB 1.09, improving from RMB 3.90 in the previous year[76] Revenue Breakdown - Revenue from core local business for the three months ended December 31, 2022, was RMB 43,472,664, up 17.4% year-over-year[6] - Revenue from delivery services for the year was RMB 70,063,908, contributing significantly to total revenue[8] - Core local business revenue increased by 17.4% year-over-year from RMB 37 billion in Q4 2021 to RMB 43.5 billion in Q4 2022[24] - New business revenue surged by 39.3% from RMB 42.5 billion in 2021 to RMB 59.2 billion in 2022, primarily due to the expansion of retail operations[56] - New business segment revenue grew by 33.4% year-on-year to RMB 16.7 billion in Q4 2022, with operating losses narrowing by 32.0% to RMB 6.4 billion[17] User Engagement and Transactions - The company reported a significant increase in user engagement metrics, with a notable rise in active users across its platforms[3] - The number of transaction users decreased by 1.8% to 677.9 million, while the number of active merchants increased by 5.1% to 9.3 million[10] - Instant delivery transaction volume for 2022 reached 17,670.2 million, a 14.0% increase from 15,501.3 million in 2021[12] - The average annual transaction frequency per transaction user increased by 14.1% to 40.8 transactions[10] - Daily peak order volume for food delivery exceeded 60 million orders in 2022, driven by increased demand during the pandemic[14] Cost and Expenses - Cost of sales increased from RMB 37.54 billion in Q4 2021 to RMB 43.2 billion in Q4 2022, with the percentage of revenue decreasing from 75.8% to 71.8%[26] - Selling and marketing expenses decreased from RMB 11.24 billion in Q4 2021 to RMB 10.77 billion in Q4 2022, with the percentage of revenue dropping from 22.7% to 17.9%[27] - R&D expenses increased from RMB 4.58 billion in Q4 2021 to RMB 5.24 billion in Q4 2022, while the percentage of revenue decreased from 9.3% to 8.7%[27] - Employee benefits expenses for 2022 were RMB 41,619,666 thousand, compared to RMB 34,767,852 thousand in 2021, reflecting an increase of approximately 19.5%[88] Cash Flow and Investments - Cash and cash equivalents, along with short-term investments, totaled RMB 202 billion and RMB 919 billion, respectively, as of December 31, 2022[13] - Net cash flow from operating activities was RMB 11,411,448, a recovery from a negative cash flow of RMB 4,011,457 in the previous year[72] - The company incurred a net cash outflow from investing activities of RMB 14,713,569, primarily due to investments in financial products and property, plant, and equipment[72] - The net cash outflow from financing activities was RMB 9,990,201, mainly attributed to repayment of borrowings and lease liabilities[75] Assets and Liabilities - Total assets as of December 31, 2022, increased to RMB 244,481,192 thousand, up from RMB 240,653,269 thousand in 2021, representing a growth of approximately 1.1%[78] - Current liabilities rose to RMB 76,430,097 thousand, compared to 68,592,957 thousand in 2021, indicating an increase of approximately 12.7%[79] - The company’s total equity as of December 31, 2022, was RMB 128,705,717 thousand, up from RMB 125,556,762 thousand in 2021, marking a growth of about 1.7%[79] - The company’s long-term borrowings decreased significantly to RMB 1,548,967 thousand from RMB 12,219,667 thousand, indicating a reduction of approximately 87.3%[79] Corporate Governance - The company adopted new accounting standards effective January 1, 2022, but these did not have a significant financial impact on the consolidated financial statements[84] - The company has adopted the corporate governance code as a basis for its governance practices, ensuring compliance with all applicable provisions as of December 31, 2022[99] - The board believes that having the same person serve as both Chairman and CEO ensures effective internal leadership and strategic planning[99] - The company will continue to review its governance practices to ensure compliance with the latest corporate governance code[99] Future Outlook - The company plans to expand its market presence and invest in new technologies to drive future growth[3] - The company plans to continue expanding its product offerings beyond dining to include fresh produce, daily necessities, and pharmaceuticals in 2023[19] - The company aims to enhance its logistics network and utilize advanced technologies like autonomous delivery vehicles and drones to improve operational efficiency[19] - The announcement includes forward-looking statements based on current information and expectations, which may not be realized due to various risks and uncertainties[102]