Dada(US:DADA)2021-09-08 06:12Financial Data and Key Metrics Changes - Total net revenue increased to RMB 1.5 billion, with a pro forma revenue growth of 81% year-over-year [22][23] - Non-GAAP net loss attributable to ordinary shareholders was RMB 549 million, compared to RMB 319 million in Q2 last year [25] - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 4.7 billion as of June 30, 2021 [25] Business Line Data and Key Metrics Changes - Net revenues from Dada Now were RMB 594 million, with a pro forma growth rate of 81% year-over-year [23] - Total net revenues from JDDJ increased by 81% to RMB 881 million, driven by an increase in GMV and active consumers [23] - Online marketing revenue from brand partners increased by over 110% year-over-year [13] Market Data and Key Metrics Changes - The number of active consumers increased by around 50% year-over-year to 51.3 million [9] - The GMV from the JD one-hour shopping service grew by 90% quarter-over-quarter [30] - Offline retail still accounts for 76.3% of consumer goods sold in the first half of the year [10] Company Strategy and Development Direction - The company aims to support the healthy development of China's real economy and promote domestic circulation [6][7] - Focus on digital transformation and enhancing the O2O (online-to-offline) experience for retailers [11] - Plans to deepen cooperation with JD Group to enhance on-demand delivery services and expand into new categories [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term competitiveness of the company amid evolving regulatory environments [7][8] - The company anticipates continued growth in the Dada Now business, expecting triple-digit growth in the second half of the year [61] - Management noted that the COVID-19 pandemic has led to increased online ordering habits among consumers, which is expected to benefit the company in the long term [42][43] Other Important Information - The company has launched a data autonomous delivery open platform to enhance operational efficiency [20] - The Haibo system has been adopted by over 4,300 retail chain stores, demonstrating significant growth [15] - The company is preparing for the implementation of work-related injury insurance for riders, with an estimated incremental cost of RMB 0.04 per order [63] Q&A Session Summary Question: Updates on cooperation with JD and expansion plans - Management highlighted strengthened partnership with JD, with significant growth in GMV from JD's one-hour shopping service and plans for further expansion [30][31] Question: JDDJ growth expectations and seasonality - Management expects JDDJ growth to accelerate in the second half, with Q4 anticipated to outperform Q3 due to seasonal factors [32] Question: Rider cost trends and implications - Management noted that rider costs have increased due to higher order volumes, but the cost per order remains stable [36][37] Question: Impact of COVID-19 on business - Management reported that COVID-19 has led to increased online ordering, benefiting the company, and does not expect significant negative impacts from recent floods [42][44] Question: Community group platform demand and competitive landscape - Management indicated that tighter regulations on community group buying platforms may lead to increased demand for supermarket retail partners [48][49] Question: Autonomous delivery cost savings and pricing structure - Management expects autonomous delivery to significantly reduce costs in the long term, with ongoing trials showing positive customer experiences [52][54]