Q2 2023 Dada Nexus Ltd Earnings Call
Speaker 1: Good morning ladies and gentlemen and thank you for standing by for DADA's second quarter 2023 earnings conference call.
At this time, all participants are in listen-only mode.
After the management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded.
I will now turn the meeting over to your host for today's call, Ms Caroline Dong, Head of Investor Relations for DADA. Please proceed Caroline.
Thank you operators. Hello everyone and thank you for joining our second quarter, 2020-2023 earnings conference call. On the call today from Dada, we have Mr. Jeff He, President and Mr. Beck Chen, CFO .
Mr. Hu will talk about our operations in the company highlights. Then Mr. Chen will discuss the financials and guidance. Please kindly note that during the Q&A session, Jeff will answer questions in Chinese and the consecutive translation will be provided. In case of any discrepancy between the original marks and the translated...
Also, during this call, we will discuss some non-GAAP financial measures. Please also refer to our express list, which contains a reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please know that, unlike otherwise stated, all figures mentioned during this conference call are in RMB.
It is now my pleasure to introduce our president, Mr. Hu. Yes, please go ahead.
Thank you, Karen, and thank you all for joining us today.
in the second quarter of 2023.
BADA group continues to do a strong, phenomenal growth with significant growth in function or operational efficiency.
Our total net number is increased by 23 year-old year. We also achieved an important milestone in this quarter, by the voting of first-year-old first-year adjusted net income.
Thanks to more than 17 percentage points improvement in our adjusted math margin.
I will begin today's presentation by discussing our cooperation with J.D.
Bon appétit!
operating high is for.....
I will hand it back to you.
We will take you through our detailed financial results.
This is the update on Dada's collaboration with JD.com.
Please change your branding and values among JD.com users.
We recently unified the discipline of our on-demand retail services across...
or touchpoints on JZ-APP.
That's Xiao Si Da in Chinese and shop now.
In particular,
So nearby our food in tap was blended shall see that
And XiaoXu.tech has been added to search results for products offered by our mix.
Let's end the panel.
This unified plan identifies...
emphasize our ability to deliver products within one hour.
And we believe that if we are significantly enhanced auto mind share among chat users.
At the same time...
We also want to enhance JTTJ's offerings by attractive prices.
You may request JJ's,"owsky Law flight strategy."
In this quarter, we utilize the price-based star-lating tool and work with machines to further improve the price compatibility.
of Xiao Su Da products. So far, we have achieved 10% increase in the product.
in the proportion of high-start products was much.
For the Xiao Zou Da tab, which was previously known as Nearby or Fudging tab.
Jeannie was encrypted.
Cheers!
Thank you.
Yeah, oh yeah.
This impressive growth was shown by exposure and quick slow optimization.
which helped the Xiao Xi Da tab double its DAU, as well as improvement in intervention rate and LH-bust value.
Let's move on to the operational highlights for our two platforms.
Start with JDDJ.
China's meeting on demand at the third platform.
In the second quarter, JT DJ made further progress.
in the teller and the brand the corporations.
and the technology empowerment.
We continue to broaden and deepen collaboration with the talents to enrich our product offerings.
during this quarter.
Did you get copy to the way to modern?
300,000 annual activity details goes at the end of June .
tasting
in the ship as a calculator.
Based on the list of top.
100 Supermarket Chances in China released by CCFAE.
Chansi in China released by CCFA in June .
We now have established partnerships with 92 out of the top 100 supermarket chains.
in June .
The girl with the supermarket in my chance JDDD launch that deliver free They were campaign in 10 key cities to improve our user experience
use that.
This is what
34% higher user growth rate
and 2% is point higher.
15 days repeated but just late.
There are the cities.
He is an encouraging child. We are not allowed.
to do a fair way to benefit to major supermarket chains across the country.
We have always focused on helping Macan achieve better efficiency through platform tools, such as long-lasting Macan specific membership features.
but a low chance to attract and manage their own members online.
the function notably increases the self-efficiency.
with all the convention of members.
more than 20% is a point higher than that of non-members.
Am I on my chest?
I have adopted the membership tool.
members already contributed to that
60 percent.
of their total journey in June .
In addition to a large supermarket chance,
We have also the MITRE UNOSC major can run in the school tents.
We further strengthen the occupation with JTE Conventing Store.
We are forming new partnerships.
Punishing sleaze.
Your smile and other leading trends.
Total GME's generalities by convenience store go by nearby three times a year. The second quarter.
We also made good progress in consumer electronics.
That's all we do, sir.
qua.
In the Smartphone category,
Traveling by fast, the driver on top often has to do pricing in the second quarter.
Let's GME our Apple products on our platform to study.
While other brands such as Xiaomi continue to see GME growth several times year-on-year, I think the best way to finance andbrate new prices are in the market here in consider the Consulting, Terratable &
In the computer and Excel, these subcategories.
GM increased by more than
17 year on year.
and the brands such as Xiao Qiantai, Kudad Hsing hundred and the
Oh, I achieved a significantly close.
Moving next to the home appliance and the finishing category.
which laugh out quickly.
The home appliance kept subject to maintain the left close.
Nìrìtáb?t jiàn mìyèo ngyè.
We continue doing mutual offerings of air conditioners and other major home appliances.
and establish partnerships with kitchen appliance brands such as Fungtai.
The camouflage shot- Glenando
Is GME increasing more than...
Forefold, year on year.
In particular,
We are seeing significant growth in the sales of electronic lock products.
Thanks to the wide range of maintenance on our platform and our 3T2O4 high quality delivery in the inspiration Celsius within 4 hours.
In addition
We set up a new partnership with Sanitary
fixture brands such as Cooler and the whole textile brands such as Fauna.
We also continue to expand our offerings in the liquid category.
onboarding more than 5,000 new stores during this quarter.
As a result...
DME increases more than four times year on year.
Next, let's move on to JDDS efforts to expand the deep end cooperation with brands.
Thank you.
Still good andRIka
We embarked on new partnerships with rice and cooking all your friends.
such as Xi Yigao Qian, and the mom and the baby prince, s Scalez.
Da wang, xin yao pu.
We currently have auto-marketed panels with about 300 leading domestic and international brands.
In terms of branding campaigns, we continue the defense collaboration with brands to promote susan han m Ground
Help brands with users who...
multiple times.
Dous largest & Office Ellis
For example, in early May, we collaborated with Jidea to launch the
planned on campus.
campaign to promote these new products.
This child more than...
In 17...
present month-on-month increase in GDS sales on JPDJ.
In addition,
So the collaboration with Jadida
Come.
We have further optimized that process.
by which we cooperate with brands on exchanges that will tighten the source.
at present.
We have conducted the source exchange with more than
Twenty brands including, Moon filter woochanh Dulhui and Rais we
Achieving win-win for both sites.
Next.
I'd like to talk about our efforts to empower both retailers and the blindsill technology innovation.
That's the end of June .
bees shapes Using groups like
for the tellers.
in about
Lean.
the force across more than 300 of the Taylor Tents.
In the second quarter.
We launched the consumer-aware assistant function in the hydro system.
which enables my chance to automatically apply to consumer reviews across multiple channels and provides an almost noveal checking.
Storonating, monotony, and other functions.
This capability is in power.
customer services and improve our user experience.
A chance using this feature can generate automated replies to our positive and negative reviews.
which can
60 higher efficiency at hand in less
at handing less favorable ones.
I will also begin to explore collaboration with plants.
We recently launched a series of brand promotion tools on the Hybor system to help brands conduct either marketing or product strategy studios.
marketing and promotions on the chance that own sales channels.
thereby helping branding improve exposure and vaccination.
I will allow town to die down low
China's leading local on demand at the labor platform.
The second quote, Dada Mo continues to provide a massive amount of flexible working opportunities.
This quarterly active noise has increased by
through the bathroom all
So if you yeah, oh, yeah
in terms of business progress.
Let's start with our K or Chen by Chen's business.
In the second photo.
Our annual flow on demand at the U.S. services took came a chance.
It increased by more than 20 year on year.
Next, we increase the output density and sufficient the light of sapphires.
I will close profit for other improve the security That is the condition you need to.
50 cents, lemonade.
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For female, the load has increased to 88%.
Thanks to our optimized slider feeder structure and refined operations.
in the Supermarket Care category.
Longing includes nearly 20 year-on-year.
We recently established a new partnership with Frustral.
or HOMA and access to come up with a chance.
frequencies, different language. Is better. You that knowledge. Okay, that?
We continue to increase the penetration in our panel in the Science Store.
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constructing quarter in a 10-year-on-year language closure of more than 500.
We also recently formed a new partnership with Starbridge.
false.
Regarding our patients, we stay in local life sources.
We continue to actively support the nationwide layout of the used food delivery business.
by providing cost-efficient and reliable on-demand delivery services across the nation.
and reliable on demand to deliver services across the nation.
Welcome to our SME and the C2C produce.
The number of SME and C2C errors fulfilled in the second quarter increased by 50 year-on-year.
This course was drawn by our continued adaptation into low-tiles computing.
and our extension into additional traffic addition channels and the businesses and others.
Must be. And update our mask mail sources.
In the second quarter, we maintain the steady close in the lambda of it.
for further orders despite the higher pace in the year of the GOPR deal.
for college or operation updates for the two platforms.
to LAPA.
We continue to post the strong financial results.
Connected the dial first there were positive adjustments at the outcomes.
at the same time.
We stay committed to the joy and the digitalization of retailers and brands.
and create on demand shopping experience to consumers.
and provide flexible employment opportunities to riders.
We will seek to build on this momentum in the photons.
ahead as we work to create substantial values for our shareholders.
I will pass the quality back.
to go through our finances.
Thank you.
Thanks, Jeff. And before we go over the numbers, just a few housekeeping items in advance. We believe year-over-year comparisons are the most useful way to judge our performance. Therefore, all percentage changes I'm going to give will be on year-over-year basis.
and all figures are in remain B unless otherwise are noted.
Our total net revenue in the second quarter increased by 23% to $2.8 billion.
Net revenues from data now increased by 20% to 980 million, mainly driven by the increases in order volume of intercity delivery service to chain merchants.
Near revenues from ADDJ.
increased by 25% to 1.8 million, mainly due to the increase in GME. The increase in online marketing service revenue as a result of the increasing promotional activities also contributed to the revenue growth of JDDJ.
Moving over to the expenses side, operations and support costs were $1.7 billion. Increase was primarily due to an increase in rider costs as a result of increasing auto volume for intercity delivery services provided to various chain merchants.
Setting the marketing expenses decreased to $1.1 billion primarily due to a decrease in advertising and marketing expenses and a decrease in incentives to JDDJ consumers.
Our G&A expenses decreased to 56 million as a result of our expense control measures and decreased our share-based compensation expenses.
R&D expenses decreased to 102 minutes mainly due to the lower R&D personal costs as we enhanced operating efficiency.
I want to get net income.
Atticible to ordinary shareholders of Dada was 8 million, marking the first quarter in our operating history to turn profitable.
Then gap net margin was
0.3 percent, improving by more than 17 percentage points year over year.
As of June 30, 2023, we had $3.9 billion in cash, cash equivalents, restricted cash, and short-term investments.
In terms of the outlook for the third quarter of 2023, we expect total revenue to be between 2.8 billion and 3.0 billion, representing a year-over-year growth rate of 18% to 26%.
This concludes our prepared remarks.
Operator, we are now ready to begin the Q&A session. Thank you.
Thank you. If you wish to ask a question please press star 1 on your telephone and wait for your name to be announced.
If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question.
Your first question comes from Ronald King from Goldman Sachs. Please go ahead.
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How do we see our third quarter growth outlook company with your revenue guidance with the underlying GMV expectations and into just probably the second half in this current macro environment? And then second, we wonder if the union economics turn around, how much of those were contributed from a lower rider cost? And so can you share how?
Yes, thanks for the question, Ronald. So before Jeff, I may just review some financial numbers and then Jeff can answer the Marco question. So about the second question, yes, we are seeing the year-over-year rider cost decline.
because the number one factor is we have optimized our algorithm. Number two is we have very robust growth for the number of orders delivered for data now.
a platform. Number three is just like, um,
Jeff mentioned in the earlier prepared remarks, our quarterly active riders is growing by 30% year over year. So the rider supply is sufficient and we believe which will help us to further optimize.
the rider cost. And the GMV would be that for the reporting GMV metrics for the second half of this year, we are expecting like more than, still expecting more than 20% year-over-year growth in the second half.
I'll leave it to Jeff for the macro question. OK. What's the title of that section?
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In terms of macro, the economy and consumption was in modest recovery in the first half of this year. Can we expect uncertainties in consumption recovery in the second half?
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In addition, we are pleased to see the new policies and measures that are supportive of private sector growth and investment.
Hopefully, the gradual restoration of private corporate confidence and the high quality development of the private economy will lead to more job creation and sustained consumer income growth.
which will contribute to the further unleash of consumption power.
we will remain patient in further enriching our offerings and optimizing our user experience.
Which we firmly believe will bear fruit in the long run.
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There is some imbalance in the pace of recovery between different types of consumption. The strong rebound in service consumption in the first half has affected the demand for physical goods to some extent and OTO is no exception. The overall consumer confidence in the market is very high. The market is very low and the market is very low. The market is very low and the market is very low. Heading into the summer, we've seen extraordinarily strong travel demand and in an environment where the overall consumer confidence has yet to fully recover, that may take some water share.
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That said, consumer migration towards more convenient and efficient shopping is a secular trend.ota online
continues to evolve and more local supplies become available online, the O2O penetration rate will further trend up to double digits.
Thank you for your attention.
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From our perspective, in Q2, JDBJ recorded over 20% GMV growth year-over-year, despite a relatively high base in the year-over-year period and continuous optimization in our pulse drop and micro Percentoom susceptibility ratio.
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Thank you for your attention.
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In terms of our collaboration with JD.com, since we depend on partnership, Xiao Shi Da has become our primary user acquisition channel. Currently, the penetration among JD users has steadily rose to mid-high single digits.
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Thank you for your attention.
Thank you.
Thank you for your attention.
We will increase our acquisition and retention efficiency through enriching the supply of attractively priced products, waiving delivery fees.
And in July , and so far in August , we've seen a better user retention.
Thank you.
Thank you.
Thank you. Your next question comes from Thomas Chong from Jefferies. Please go ahead.
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Thanks, management, for taking my questions. My question and congratulations on reaching profitability in the second quarter. I have two questions. My first question is about the peak rate trend as well as the direct margin outlook in the second half.
What are the growth drivers and how should we think about the momentum for online advertising in the second half of the year?
And my next question is about JDDJ Product Mix. Can management share about the product mix in Q2 as well as the trend in the coming quarters as well as the AOV for the year? Thank you.
Thank you, Thomas. Let me answer the financial question.
In terms of the tick rate and direct margin of JDJ and Q2, the tick rate is 9.9% and the direct margin is 1.8%.
as percentage of GME. And for the outlook for the second half of this year, we expect that the ESpedawn
Overall, monetization rate will still maintain stable and grow healthily. And we are still targeting to grow our air conversion level above like 2 to 3 percent for the second half of this year.
and the main ghost driver for the TechRate will be still...
and driven by the online marketing services provided to brand partners. While maybe some of it will be more prudent on that, but still we will keep to grow this part.
as the main driver for our optimization of the surge margin level.
as the main driver for our optimization of the surge margin level. In terms of the
product mix. So for second quarter, our overall supermassive contribution is 45% of the GME. And just like at sitting up and standing up for another
As mentioned in the earlier prepared remarks, our different other physical merchandise categories like a smartphone category is...
computer and accessories categories, home and the home furnishing categories, home appliance categories, liquor categories. So all those categories is growing by several times on a year-over-year basis. So we expect for the second half of this year, all these new categories could come.
to more to overall GME and the
to overall GME and GME max.
So in terms of the...
and average all the value metric.
All right.
for the second half
So for the second half...
Let's see. The overall AOV of the platform is.
260 RMB.
and a 6-T R&D.
We are still targeting to maintain the overall marketplace AOV and maybe still will grow the AOV for the second half. But in terms of the supermarket categories, we are still targeting to maintain the overall market AOV.
It's like 190 RMB. So maybe there will be some, for example, like preferential iterate fee waiver to some of the customers. So for the second half, we expect that the AOV of supermarket will be offering an AOVesome for this kind of an!! Also we welcome clicking Chessunct keeps making sure there's another 18 months allowed JJ Merry's
and is stable on Q-on-Q level. Thank you.
Thank you. Your next question comes from Alicia Yap from Citigroup. Please go ahead.
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So my question is to follow up on the category demand shift. Obviously, the non-FMCG has been growing very well. Can management give a little bit more color in terms of the behavior shift, especially, I think, in terms of the demand shift?
management mentioned about the big appliance seems to be one of the important drivers. If you can share about the percentage of GMB coming out from the big appliance, home appliance specifically. And the second question is on the online advertising.
given the macro continue to remain weak, what are the brand willingness in terms of their ad budget spend on our platform? Thank you.
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Thank you for your question. In terms of the category mix of consumer electronics and home appliances, we believe the contribution will further go up in a second half.
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The growth driver for the consumer electronics category will be the brand who will introduce several new models in the second half, including from Xiaomi, Huawei, and Apple.
Thank you for your attention.
In terms of major home appliances, the GMV for this category will remain on the fast growth trajectory driven by our further enriched product supply and the service of integrated delivery and installation.
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However, the mix of major home appliances and total GMV is only in the single digit.
Thank you.
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And to answer the second question about the online marketing services revenue in the second quarter, our commission and online marketing services revenue. Combined grew over 30% year over year, many driven by the growth and all marketing. Light.
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You asked about a brand potentially cutting their ad budget in the macro environment. However, we are seeing that our revenue from brands are increasing since OTO has become the fastest growing sales channel in China.
And another driver for our online marketing...
service revenue is the increase in our advertiser base. We are now collaborating with about 300 buyers in auto online marketing.
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And in addition, the revenue growth, the growth driver for online marketing services.
And in addition, the revenue growth, the growth driver for online marketing services.
our capability to innovate our product and technology and marketing.
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In Q3, we will launch a key ad product, which will further drive our ad revenue growth. In the testing period, we are seeing very encouraging results from the new products.
Thank you. Thank you. Your next question comes from Li Zhang from Bank of America Securities. Go ahead.
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Thank you for taking my question and congrats on the profit breakeven and follow this. Can you share with us the second half of the full year margin trend?
Secondly, I want to have some updates on our cooperation with JD group. Any new initiatives you can share and if I may, may I follow up on the GMOA contribution from JD across different channels? Thank you. I want to be clear, this is a calculated split again. Okay.
Okay, thank you for the question. So for the, for the, for the, for the first question, so.
For the second half of this year, we will still balance the growth rate of our top line, especially the growth rate of JDDJ, despite of the growth rate of JDDJ.
right now the current macro outlook in China. So we have balanced the growth rate and the improvement of the profitability of the bottom line, so.
And this is just the first quarter for us to break even. So, of course, we don't expect it to grow the bottom line. Profitability and margin are very quickly in a very short term, especially under the current macro.
economic outlook. So we still will grow stably and grow the bottom line in a healthy way. And we will also balance the top-line growth because if you don't have any top-line growth, your quarter, your half-line growth is a safe consulting generate.
profitability in the long term will be also negatively impacted. And for the same question, so I will leave to Jeff for the cooperation with JD.
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Thank you.
We just touched a little bit upon our cooperation with JEDI.com just now that I'll summarize a few key initiatives now.
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First, we unified our brand identity under Jia Shida and we've seen an improvement in user conversion.
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For instance, the conversion rate in the Zhang Shida path is now 20% higher after we change the name to Zhang Shida from city names. This compliment on the
Thank you for your attention.
Secondly, we improved the price competitiveness of RSR-SHDAR products by leveraging our price-based star rating system.
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As of the end of Q2, the number of high-style products or the products with high competitiveness in pricing grew eightfold sequentially, and the average exposure per item increased by more than 10%. andback then.
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For example, we recently again working with the front-end warehouse business unit and we are providing the on-demand delivery service for all of its orders and we've seen an increase in JD's contribution in side-on-off. We are also providing the on-demand delivery service for all of its orders and we've seen an increase in side-on-off.
an older volume.
We will continue to both testify with our required OoT and carefully consult with the Thank you.
A stable source of orders is very beneficial to our business stability and profits as well as long-term development.
Thank you for your questions.
And the GME contribution from JD in Q2 is 67%. And we are expecting the penetration from JD will be further enhanced in the second half.
Thank you. Your next question comes from Andre Chang from JP Morgan. Please go ahead.
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Let me just explain my question here. So with all the questions on cooperation with JD group, I'd like to ask a question about other customers, namely Douyin. Douyin's food delivery business seems to have limited...
some updates about the cooperation as well as the outlook here. Thank you.
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Thank you for your question. We recently launched its food delivery service in more cities and we have actively supported its geographic expansion. However, the business is still in the early days with limited number of merchants on board.
Therefore, the incremental orders is not significant yet to pay a business. Until our knowledge, Celine's contribution to our peers is similarly insubstantial now.
Well would beyond our Su part in unitition that Chinese issued some on the income.
Thank you for your attention.
But you DISE on that, it gets something SH hicle, for you can how one the fucus on the you, the musical institutions, hunches at the. You can pass cent coconctly nothing.
Unlike certain peers, they're pursuing profitable out-of-volume growth on the growing platform.
Thanks to our edge and cost efficiency service quality and network coverage, we are highly confident in gaining a meaningful market share on in the longer term.
oknow, when did the COUR you know, I mind you, why it should happen in.
So when you J ER that you can Trans Act, value that youp for.
Our Data Now business not only fulfills Doyin's food delivery orders, but also the one-hour delivery orders offering Doyin's e-commerce segment.
Don we honest take quite take should up me that take conion representation to.
Similarly, the contribution from the E-commerce team.
segment is not significant to our business.
Thank you.
Thank you.
Thank you. Your next question comes from Waze Young from UBS. Please go ahead.
Lt. Gen. Zhang, cosine chief clinical team, who has a relatively narrow doubled goal in the video and it'sies had been lost recently with
Thank you, management, for taking my questions. Just two follow-ups. First is on the longer-term margin trend. How should we think about the margin expansion pace in the next few years? And if we look at JDDJ and DataNow separately, how should we think about the margin trend for each of the segments and their contribution to the longer-term margin improvement?
And second, just very quickly, how should we think about the revenue outlook for data now in the second half? Thank you. OK, thanks for the question, Hsien Wei. So for the long-term margin outlook, we have some really interesting comments that
We actually didn't change the long-term margin outlook. So separately, JDJ is a local version of e-commerce marketplace. So an S percentage of GME would be that the long-term margin should be 3%.
of the GME, operating margin, and also for the now businesses. So for example, like the chamber change at the rate of the netes, in Q2 our unit economics is about $0.50 on B.
after tax. So generally the gross margin is above, after tax is above 5%. So we still expected to grow the gross margin at least like to 10% in a three-year timeframe. and we
believe that as compared to other express and logistic companies we believe is totally achievable. And in terms of the data analysis, second half shows upload trash watergy bl". Also, here is an example from hell Luna
we are confident that they will keep to grow above, at least above 20% on year-over-year basis.
Thank you.
Thank you, management.
Thank you. There are no further questions at this time. I'll now hand back to Ms. Caroline Dong for closing remarks.
Thank you, operator. In closing, on behalf of Dada's management team, we'd like to thank you for your participation in today's call. If you require any further information, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call. Thank you. This does conclude the call.
Good morning ladies and gentlemen and thank you for standing by for Dada's second quarter 2023 earnings conference call.
At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded.
I will now turn the meeting over to your host for today's call, Ms. Caroline Dong, Head of Investor Relations for DADA. Please proceed, Caroline. Hello, everyone, and thank you for joining our second quarter of the 2020-2023 earnings conference call. On the call today from DADA, we have Mr. Jeff He, President of DADA.
and Mr. Bakchan, CFO . Mr. Ho will talk about our operations in the complaint highlights. Then Mr. Chen will discuss the financials and guidance. Please kindly note that during the Q&A session, Jeff will answer questions in Chinese and the consecutive translation will be provided.
In case of any discrepancy between the original remarks and the translated version, statements in the original remarks should prevail. Before we begin, I'd like to remind you that this conference call contains working statements. Please refer to our latest safe harbor statement in the earnings press list on our IRY site.
which applies to this call. Also, during this call, we will discuss some non-GAAP financial measures. Please also refer to our earnings press list, which contains a reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please know that, unlike otherwise stated, all figures mentioned during this conference call are in RMB.
It is now my pleasure to introduce our president, Mr. Hu. Jeff, please go ahead. Thank you Karen, and thank you all for joining us today. In the second quarter of 2023, the president of the United States of America, Mr. Hu, was elected to the United States Senate.
BADA group continues to produce strong level of growth with significant increase in operation efficiency. Our total net netness increased by 23 year – year.
We also achieved an important milestone in this quarter. By recording our first positive adjustment in time.
Thanks to a more than 17 percentage points improvement in our adjusted math margin.
I will begin today's presentation by discussing our cooperation with J.D.E.com.
followed by operational highlights for our
I will then hand over to Beck who will take you through our detailed financial results. This slide will send updates on DAADOT's collaboration with JD.com.
This changes our branding awareness among JD.com users. We recently unified the display line of our on-demand retail services across all touchpoints on JD's APP.
S. Xiao Si Da in Chinese and shop now.
in Chinese and shop now. In particular,
The nearby or fusion tap was landed shall see that
And the XiaoSuda tag has been added to search results for products offered by our mix.
Let's mention the partners this unified plan that identified
emphasize our ability to deliver products within one hour.
And we believe that if we are significantly enhanced auto mind share among
So we believe that we have significantly enhanced auto mind share among jet users. At the same time, we believe that we have significantly enhanced auto mind share among jet users.
We also want to enhance JT-Djest's offerings by attracting prices. We now wish JT's everyday low price strategy.