Q3 2023 Dada Nexus Ltd Earnings Call

November 15, 2023

Good morning, nitrogen gentlemen, and thank you for standing by for Dod Us third quarter towards wage rate earnings conference call.

At this time all participants are in a listen only mode.

After the management's prepared remarks, there'll be a question and answer session.

As a reminder, today's conference is being recorded.

I'll now turn the meeting over to your Hartsville today's call. This is Caroline Dong He doesn't Mr Relations for data. Please proceed Carolyn.

Thank you operator.

Hello, everyone and thank you for joining our third quarter 2023 earnings conference call on the call today from <unk>, we have Mr. Jack Lithia, well practically and Mr. Chen CFO.

He said well, we don't talk about our operations and company highlights then Mr. Chen will discuss the financials and guidance at least candidly I know that you know when they can.

Our next session. Jack will also question in Chinese and then consecutive translation will be provided.

In case of any discrepancy between the original remarks, and the release and the translated version.

Eight months email original remarks should prevail.

Before we begin I'd like to remind you that this conference call contains forward looking statements. Please refer to our latest the safe Harbor statement in the earnings press lists all of our IR website, which applies to this call.

Also during this call we will discuss certain non-GAAP financial measures. Please also refer to our earnings press release, which contains a reconciliation of non-GAAP measures to comparable GAAP measures.

Finally, please note that a light otherwise stated all figures mentioned during this conference call are in RMB.

It is now my pleasure to introduce our practice.

Yeah Yeah.

Yeah. Please go ahead.

Thank you Gary.

Thank you all for joining us today.

Yeah, that's that's quite well.

How do you see that that Google since then.

Repurchase popcorn close and another there's a good.

Okay TD frequency.

Our total leverage increased by 20.

And Justin that much even through the pipe.

Yeah, one percentage points year over.

Oh yeah.

I'll, let begin today's presentation with loose a peso.

Completion with JD com.

Our performance through the tablet.

The shopping basket.

What are the operating highlights of our two platforms.

I'll, let Dan and I'll go back.

Uh huh.

Thank you so our detailed financial results.

Of course.

Yes, Scott.

Jackie Dot com.

In October.

Got that group and it didn't all come hasn't.

And on demand than to tell you.

That's conference soon.

But that is the reason.

In each well.

Well, let's see what's out of them.

And we had the effect you're actually playing close to consumption.

Pillows and to create the jobs.

But particularly in the next five years.

Did you get that back on all of them.

And to facilitate the on demand consumption of all once again.

And with our ecosystem partners.

So that with the digital transformation of more than two move in back end.

A lot of stores.

And they cumulatively created over 10 million that's volume opportunities.

This not only demonstrates our strong confidence unit potential demanded Italian that's true.

But also our commitment.

So many social responsibility.

Does it all come in the us with Janssen a base seem to assure this goes.

Yes.

I'd like to provide highlights from the south of it probably doesn't suffer with us too.

Well Jbt's yeah.

H M. The leach pad.

All time high.

In the <unk> through all of the promotional grew robustly.

It's multiple telcos that Justin keyboard, which is close.

Including recall.

Mom and baby products.

On foundation and the convenience stores.

With that I'll now.

The other one but they are.

I'm not going to call them.

Hi, all.

15 million.

And the total auto repair that niche.

200, and median during the promotion period.

That's more onto the operational highlights for our who's got home.

Starting with what we do here.

The leading on demand at retail performance in China.

In the third quarter.

We continue to strengthen and expand our partnerships with lip palettes and advance.

And the subway and homestyle booties and technology innovation.

Having reached the Perl our completion.

During this quarter, we continue to broaden and deepen our cooperation with the tell us too.

<unk> product offerings.

Okay.

September.

Did he do there has on boarded more than 400000 independent stores.

Yeah.

The silver market, particularly.

We added more top supermarkets attempts to our platform.

And they have long established a partnership with Nike.

Thank you Sir also have their top 100.

Supermarket attempts in China.

After all it's all to do off the labor content and go to a majority of our supermarkets across the country.

Your line.

We saw lots of an increase.

User engagement.

Evidenced by improvements in both retention leap and the <unk>.

Purchase frequency among our U S S supermarket pet food.

We also made progress.

<unk>.

Colonial in the stores.

<unk>.

Moving to Germany, German niches of bank in London.

C stores.

I'll go in more than eight times, Yeah, Oh, yeah.

More on the consumer electronics.

So carefully.

We've got some my phone subsidies tend to hit we began participating in the launch of the new Apple products for the fourth.

Since that time.

Yeah.

After the iPhone 15 serious was officially launched their first sale in September.

Yes.

First the two hours.

Increased by 250 compare that to the chess game.

IPhone.

Or can.

In addition.

And just one such as Xiaomi and oneplus.

So a lot that goes into third quarter.

For the computer and.

Excessive.

So, particularly.

<unk> increased at a time.

60 year on year.

This growth was attributable to.

Our support for new brands.

Can they must be lens.

And our efforts to explore that Leslie showcase in animals.

Notably one such as thou.

Shall turn time.

G E.

We experienced significant that those should.

During this quarter.

We also continued to make progress.

The home appliance and home furnishing category.

In the home of Pines sub fifth politically.

<unk> sat with diversified USA news offering.

A T. The skus and the comparator is equal to the channels.

Offerings enhance the experience of one stop to be about.

And the installation.

In this quarter.

We've established a new partnership with <unk>.

Our parents dance.

Such as hygiene and the summary.

And the newly on boarded.

8000, the hunger scores on 12 per phone.

That's a result.

Our home appliance Chan school with a bias.

70 year on year.

The home furnishing sector. We also saw a left to close.

With <unk>, increasing by nearly three times year on year.

We established a new partnerships with clients such as <unk>.

Fashion.

And sure enough that's all in our offering.

10070.

In the apparel category.

We recently signed a new partnership with Swiss and bank of outdoor plants.

The good news about XI XI Cook.

That's the way I was under way our plans.

Such as possible at high noon and the home depot.

And does it luggage brands such as maybe.

In the third quarter.

Of that pile of cash the increase in more than five times year on year.

For the live call Kathy.

Yeah.

Do you mean more than tripled year on year.

In the third quarter.

Driven by our continuous efforts to improve the supply of core skus.

Next.

That's talked about JBT just process.

Depending correlation with brands.

It is a pioneer and a leader in Ottawa Maxine for plants.

In September.

We officially launched it there.

Sampled 10 billion pounds.

Which aims to have a more than 10 plants.

Sales of more than 1 billion.

And they establish a benchmark.

Benchmark plants, which are sales of more than $10 billion on our platform.

When countries.

Sure.

Okay.

Our blended panel.

<unk> kept the spending.

Recently, we formed a partnership with lithium biofuel plants.

The maritime and the young.

Yeah.

The first on demand in the tail platform safe quality. Please.

We also established a new partnership with slack for the plants.

So I guess with the engine pools.

And that is brands, such as Lipton and that yeah.

We also continued to enhance our omnichannel ultra mushroom cooperations with plans.

Nothing beats yours is through my people are tenants, both on and off the kidney disease.

Starting in September.

These cover ITW.

Such as quickly Oh, Yeah, and let me back in.

To help them enhance the exposure.

Wow.

In the late Q offline campaigns, such as sunscreen.

Ken can pepsi competitions.

On the final day of the U N. They use in Shanghai.

Hey, good muscle.

200 tonnes a year on year increase yourselves.

And 68, an increase of an order or whatever.

Yes.

I'd like to talk about our technology in a way she efforts.

Well the pillows.

Our omnichannel ultra operating system and higher growth continues to play an important below.

The Indian rupee.

Efficiency.

At the end of September.

Hi, Bob had been deployed in nearly.

Paul the saga in the stores.

We released them the upgrade of the hydro systems, which are lifestyle store taking.

Function to support the additional business with Pseudomonas.

And Mike you went through the counting more nutrition to suit.

You bet.

Athletes and magic.

Panic, the merchants, who use that is a piece of function.

Nike My job is well taken.

Our Beaumont right.

Power plants.

With further upgrades within our masking technology.

In September we will reduce that equal.

The first step through the lower Muscatine, Iowa plants.

Plants use on demand at the tail investing.

We can improve there must be efficiency.

Repeat dosing class Ultralow Omnichannel data and then sales.

Courthouse Lance.

It's a marketing opportunities that I believe that intense of boats.

Consumer demand and their supplier status.

So as to make my TV campaigns more effective.

That person.

Consistent has been adopted by 10 plants in catalysts such as <unk>.

Consumer electronics in the past and awareness.

And as appliance I use Stefan neutral solution to a managed market activities.

The conversion rate of increase was led by Paul put some put some teeth.

And Oh, each new customer acquisition costs that decrease with time.

37%.

I read aloud tend to buy them all.

Can I ask maybe local on demand could you give a platform.

In the third quarter.

We continue that we extend our purity capacity.

This quarter, the actual either good or bad on our platform increasing more than.

Hunting year on year.

Our first step discuss our care.

I'll turn my chance visits.

In the third quarter.

The cost of labor.

Melanie upfront.

And when demand that deliver associates, who came a chance.

Another issue that pool pump.

<unk> five year on year.

In particular.

One with them.

<unk> continued to grow after the fact.

Hi, Barbara.

Double digit delayed.

In addition.

And the next time the kids category.

We look to them to form the new partnerships with less than the chance such as Gio, John and his team.

Whereas tencent cooperation with lithium plants, among our existing panels.

Moving onto our SME and synchronous citizens.

Thanks for a wider.

Now to our associates.

<unk>.

The landlord assembly and see to see others for three other than the third quarter.

They buy a 40 year on year.

Yeah.

Lastly, and update the owned by downloads autonomous Dsos.

We continue to consider things like.

What did you mean, it's not just that it's hard unless you do a platform called Super markets in China.

Debate.

Not on us pretty much deliver open.

Open platform.

For more than two.

200 <unk>.

On demand that you or others for supermarkets.

That concludes our operational updates for our two platforms.

So a laptop.

We can deal with another strong quarter of financial results.

We started that goes through in melanoma and.

The communities tend to year on year improvement that you are putting on.

The long risk get the continuous improvement in business performance.

Our model also creates unique social value.

Therefore, we are sad for us.

Have your plans of London.

Consumption digitalization and his employment.

Which is in line with our strategy to realize healthy growth.

You know what they are in the community.

Cause cause.

15.

Consumers tell us brand owners.

The lighthouse.

We will continue to explore that is Jackie just to start with.

Suspended it depends of course shareholders.

I will now pass the call over to Pat to go through our balanced financial results.

Thank you.

Okay.

Thanks, Jeff.

Before we go over the numbers just a few housekeeping items seeing events, we believe year over year comparisons are the most useful way to judge our performance. Therefore, essentially the changes I'm going to it will it be.

On a year over year basis, and all figures are U.

Unless otherwise noted.

The total net revenue in the third quarter increased by 20% to $2 9 billion.

That's revenues front I don't know increased by 29% to $1 1 billion, mainly driven by increases in order volume of interest.

He never races services to chain machines.

Revenues from J D D J increased by 16% to $1 8 billion.

Mainly due to the increase in G&A, increasing online marketing services revenue as a result of the increasing promotional activities also contributed to the revenue growth of J D. D G moving.

Moving over to the expenses side operations and support costs what you.

The increase was primarily due to an increase in <unk> costs as a result of increasing order volume for intra city delivery services provided to various chambers <unk>.

Selling and marketing expenses decreased to two 1 billion, primarily due to a decrease in advertising and the marketing expenses and a decrease in incentives.

Moving to the DJ consumers.

G&A expense <unk> expenses decreased to 10 9 million as a result of decreased amortization of Phineus cooperation agreement and the non competes commitments related to the acquisition of J D. D. J E T.

On T 16, which was substantially amortized as of June 30th 20th century Street.

And reduce the share based compensation expenses as well as efficient expense control measures.

R&D expenses decreased to two.

94 million, mainly due to lower right.

Personnel cost as we enhance our.

Our accretion efficiencies.

non-GAAP net loss attributable to ordinary shareholders of <unk>.

It was 9 million a significant improvement compared with the loss of 217 million in the third quarter of 192, non-GAAP net loss margin was 20.

3%, improving by 11 percentage points year over year.

As of September 30th tons, you're talking history, we had $4 4 billion annual cash cash equivalents.

<unk> cash and short term investments, achieving an increase as compared with the balance as of the end of 'twenty two.

In terms of the outlook for the first of all there are plenty of tons history. We expect total revenue to be between Threep at in the industry <unk> 3 billion, representing a year over year growth rates of 12% to.

20.

3%.

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 one on your telephone and wait for your name to be announced.

If you wish to come to your request Please press star two.

If you're on a speaker phone please pick up the handset to ask a question.

Your first question comes from Ronald <unk> with Goldman Sachs. Please go ahead.

Okay. Thank you.

For taking my question and thank you, Jeff Beck and Caroline.

So my first question is on how we're seeing that.

Recent trends of growth in singles day, and based on your <unk> guidance, the sequential sorry slower year on year growth.

Do we see what are the drivers of our growth and how should we think about next year.

Along the consumption trends.

Discretionary for on demand products.

And then my second question is on our cooperation with J D.

The J D.

Rebalancing kind of traffic that 10 billion subsidy program and three P. Just how how it has the cooperation bean and.

Do we do we see any change in our trial.

The J D traffic allocation to ourselves and any updates on the cooperation.

Let me translate myself, she said Juanita now Royal Yeah. Good he went D and Oh sure Danny strongly that Shin Kong, Oh, you're kind of thinking through the critical sung Jong.

That's why you see it in a woman in Canada, a selfie Uh huh I owe them and they are doing.

They are you should pay someday, though wonder Mike hundred bombing yet right.

South America et cetera.

Our 2019, helman granting donut shape.

No I think Don T and you bought a put on that you said, how Trump I'll call lumpy some are not.

Nah train three walkman cleansing don't give me a little confused here.

Sure.

Okay.

Uh huh.

But two tenths of thousands of volunteer playing music.

We shall see.

The lesson here nice voice as it goes on to each of those so I hope I think a few months.

Yeah.

So just on Keystone CIT I saw something with us.

So passenger cars.

Uh huh.

So we assumed a chance anybody bad like Hana so good to me.

So I said that we're sensitive.

To shelter future shoot up.

You see you know, we wont corner right Hooper Holmes and Dr pool, which also can eat chicken instead of just a sharp if you see there's a chance.

Yeah honestly within that suite, you can either sheets.

Sure.

We said that.

Thank you for your question Ronald how fast.

You are.

Update on the overall performance.

Double 11 shopping festival as we all know, it's a quite long and that starting from mid to late October and running all the way through Oh.

November.

During the first two or three weeks of October.

Brown sand.

The consumer electronics categories were softer side.

Two factors.

An increase in online.

After the war and travelling demand.

Factset purchasing frequency supermarket tactically does that make sense and be.

Demand for Sun.

Smartphone brands was not as strong as we had expected.

Now, let's take a closer look when she can melamine candela. Thanks.

So maybe you could sort of sometime.

Inside of Tulsa team there.

Thank you Ed.

Such us with self Sudhakar said excuses when she hasn't missed with that so good.

That sounds good.

Knowing that.

After all.

During the double 11 shopping festival.

However, we've seen a decent recovery and growth rate.

Actually all supermarkets category.

Primarily thanks to our athletes and prioritizing value on their customers' savings on top of our convenience of one hour delivery that we provide.

Oh, sorry.

Thank you and our meals at home.

Do you see that flowing through.

So this applies also to meet with you.

It's worth it to the tender.

On the peak day of November 11.

We made a historic.

Thanks Ruth.

Especially if we are we've seen decent growth for the supermarket category.

Well, who own kwanza shelf like Hon.

When we gave ourselves is absolutely critical to them.

Once we got to look at the surface.

So it's hanging wanting more than take the south central and that's required some choppy.

Sure.

We shall between Houston and ship it.

Super Super.

Okay.

Overall, the consumption markets recovering.

In two different categories, however, spending and services, including timing and accommodation entertainment and tourism continue to outpace.

Spending in physical goods. In addition, the need for on demand retail is less prominent and outdoor fabulous foodservice consumption.

Your next question comes out that's either surface ships.

And then I think you said century nickel cool with it yet.

The overall.

The central.

So you can say about so let's take a look at.

So Hudson Bay.

Neither of these trends, we will continue to focus on consolidating our strengths on the supply side and optimizing the user experience.

To position ourselves for the increase and <unk> penetration in the long term.

And about which we are highly optimistic.

You can change our retention Alicia Richard the GT the kitchens.

Some good Tucson to the Cheese award, which is a central pool, two essentials without that you can pull to do so.

It's embedded in the system.

To provide you with an update on our cooperation with JD com.

J D D J and I don't know continue to strengthen our cooperation with <unk> during the quarter.

Starting with J D D J.

First we continued to penetrate and easier interface with the number of accounts should I use this quarter.

Core tax increasing by close to 40% year over year.

Let me tell you around Samsung we call you said that you will tender that debuted on local funding in order to ship without too much into the Chinese and Korean not much out.

<unk> 2019 to agenda item <unk>.

And then Jim sometimes unusual times and G suite.

So that's something that you kind of articulate what the timing on the program.

Our traffic growth on J D.

And outpacing our user growth as we gained access to new and viewpoints on the JD App for example.

Lbs feature is now being gradually integrated into that 10 billion subsidy.

Flash sales channels, which enables our merchants to generate incremental exposure.

So social if I'm in merchant ship.

Tim mentioned that tourists, it's essentially on par with MTV <unk> didn't do that you don't change it.

Two on teaching them with you and of course Johan Shelley.

Apart from the incremental touch point with gains.

We're making progress in the existing.

User interfaces.

So the search readout for example, easily J D Dot com has been testing.

Archived audio products and categories, including fresh produce and heavy and bulky items, so as to enhance user experience while improving efficiency.

So that takes money on when we shared with you maintaining in Tempe team.

<unk> I don't know who you are.

People material, which ends up being.

Sure. So if you teach them again, Judy wants you couldn't get the T cell.

And then in terms of that path.

Previously known as pioneer foods.

<unk>.

We have refined the page design the data with Daddies project development team to drive significant growth.

Same time, we are pushing forward the continuous increase in conversion rate and it will be.

Oh, what a capital question gimbal that can get you to both of them had $1 <unk>.

To use the solution.

Now I'd like to share some observations and thoughts.

The impact of this changing algorithm.

J D E J platform.

No I'm, just asking ourselves the opportunity to move the showpiece of TV Youtube assumption.

So you tell me the people before him.

<unk> news or something in their usage.

It seems to me the Choctaw.

Sure I'll take time can you talk or central <unk>.

We continue to learn from that.

Cupid appeal heart function such as this we will use a slide that habit.

I believe so should our service not only provide JD users with high quality products and faster delivery.

If a competitive price.

This stemmed from our retail partners strength and the supply chain.

<unk> is able to provide a better user experience and all three dimension itself.

And services.

As a result, we believe that these new traffic allocation mechanism will benefit started off well in the long term.

So that's something that's happening now.

Go to Youtube.

We saw something that.

Youll see us with feet on the chip.

I need to listen to them and that's what he said so that's on the season.

Oh sure does advantage in terms of product quality and diversity.

As well as delivery Speediness is self evident so I would like to elaborate more on the price competitiveness of Orange Amsterdam Dallas.

So I'll, let you answer it sounds as that change on the podium.

Two times do jewelry, that's hung out at the moment they've.

They've got to do this over the caution is asking for something.

All of this potential sanction to Hollywood and transition to production.

So the years of experience.

And offline retail attain merchants, we are cooperating with usually have already built strong supply chain capabilities.

Which enable retirement you provide consumers with competitive process.

In particular and put our categories, such as fresh burgers and heavy and bulky items just mentioned.

Uh huh.

Jim do some deals.

To ensure that she felt.

The central idea of a cheaper sand per CRD, this or something like that.

Switching from EMC.

<unk> excuse me, Sean just wanted to ask where do you think.

But the question sorry.

So it's about Super League as shoppers, so that people think about Chile.

[noise]. In addition, conducting hotel business on top of their existing offline stores require will require little incremental rental and personal personnel costs well they tell us.

Given that lower selling expense ratio.

Significant room for our retail partners to offer lower prices and so on.

Should our channel and to provide our consumers with a more value for money items.

<unk> was kind of.

Shang isn't demand cheaply detailed family life.

So that I can do social programs.

We launched two sessions with you soon.

<unk>, reaching social program left really teach them about Lucy.

Looking at our operational results.

J D began to emphasize the pricing factor in March alright exposure J D sections out have maintained remarkable growth.

Non core in Q3, the daily average such exposure.

Supermarkets category increased by 50%.

Well take our membership Association show.

<unk>, how should we chalk assumption.

So this year, we see that that essentially yourself.

Okay.

So that's one piece in Q T cell phone, but he got it.

In addition, the percentage of how a price competitive product.

Okay.

Ah stay to add about 30% during the November 11 shopping festival.

Many of the overall competitiveness of our products.

Thank you for your question.

Yeah.

The next question comes from Thomas Chong with Jefferies. Please go ahead.

Hi, Good morning, Thanks management for taking my questions.

First question is about J D D J.

Non mix.

So can management share about the takeaway and the expense ratio for different items and on that front, how should we think about it.

Do the economics as we go into Chinese wonderful what are the drivers behind.

And my second question is about.

The old to all opportunities.

In China.

As we mentioned in the prepared remarks, the market size is huge but on the other hand.

We also see.

The competitive landscape.

He is also quite intense as well so just wanted to get some thoughts from management about how we think about the landscape and trying to turn a fault.

And on that front.

What is the long term.

That margin.

Expecting.

In.

In the coming years.

Thank you.

Especially on the challenges that you win.

The carbon tissue Kuan Yew J P D J D E.

Right.

Bhutan.

Tricia you don't hold a woman.

Our scheme in GCE Jade our unit economics.

Gotcha.

A light of unsung compound rate.

Rachel.

Gotcha.

What's your current issue Kwan huge go hungry.

A woman combo.

On demand ultra all jakafi quietly chic of facial and body goodbye.

Well, meaning guy doing man.

So a competition that you've got kind of a pause.

Yeah.

You know how stable the challenge that you have direct margin.

Same type of TPI cause he can be definitely something fishy.

Thank you Tomas so this is.

Yes, your first question.

Jeff can take the second question so.

In terms of the monetization of J D P. J in Q3.

The monetization rate was increased to 10% in.

In Q3, which is the first time, we pass through like the 10% threshold.

Historically.

And at the same time.

In our consumer incentives was.

Further decreased to three 3%, which is either like decreasing juncture basis or year over year basis.

Thanks Pam.

<unk> cost.

Including rider costs packing costs was four 7% which is.

Decreased on a year over year basis, while increased Jiangsu.

Is it could it be cost seasonality summer campaign.

Campaign.

And in terms of the.

For example in that country attentive for immediate driver is still we will keep to increased commissions on our marketing and manufacturing of rate and then at the same time.

We will further.

Decrease our.

Consumer incentives.

Spencers and also operating costs.

Side to further enhance our.

Dirksen marching along year over year basis.

And also in terms of the last question. Your second question in terms of the long term margin. So basically as we have talked about previously so J D. J is could be.

And that netted to two like the traditional E Commerce platform, which is just a localized version so.

In terms of like the appreciating.

Operation profit again, Jamie generated through the platform. So we are a marketplace model neutral platform model. So it should be targeted as a 3% as a percentage of <unk> is our.

Operating non-GAAP operating profit for J D J.

Thank you Paul.

Okay.

I said the other way.

She's not sooner than that.

No.

So that's a good.

And daughter internal economic impact that you're seeing.

Congrats on a familiar to me isn't that sees a hernia, but to their financial needs.

Well, thank you Jason.

<unk> syndrome collusion message, we call without it.

And then just real quick.

Since I could see that youll see the need.

Two quick questions.

Now I'd like to share some thoughts on your second question about the competitive landscape.

That's more leading internet companies are prioritizing.

<unk> retail business speaks off its great potential and we believe the industry can easily accommodate different players to grow vibrantly and their respective areas of strength.

Cumulative catch IBM saw some gaps where they can achieve chairman so you'll see units within them.

I think what the EU.

And the pipeline that you need to see students with some of the simple with the fulfillment.

What's your thoughts in terms of anytime she can reduce impact.

So it sounds healthy manner.

So that what I mean by challenging that sends out that's the message.

Especially <unk> stopping the total neutral zone.

Rachel.

So if we could squeeze your assortments issue in this quarter Q2.

So J D J, firstly, our strengths and extensive partnership with pay merchants remains rock solid.

This is a result of our positioning as an open end mutual platform as well as our accumulated know how and expertise and empower and retailers.

Various systems and services.

Mentions ecosystem with no. It is hard to replicate and short time other platforms.

And supermarket category.

<unk> on boarded 93 out of the top 100 tanks in China.

In addition in categories, such as smartphones and mom and baby.

We've also teamed up with most of the leading chain retailers in China.

This abundance of high quality supply and is the basis for us to continuously attract and retain users.

Additional new two new ships with simple Timna, we don't put the Chengdu.

So if we don't find them.

Mitchell Pinheiro chooses to assist that Susan.

So play on acquisitions with a shoe too.

So.

Whichever mutations, which agenda situations in ICU Schindler.

$2 million for Tim mentioned or mutual goals future.

So is that something you announced the opinion sort of the thing that comes out of the yard Shaw.

Interim Chongqing Tianjin millions of ports on our tissue.

So the increased <unk>.

These are big townships of Genpact delivered so that $2 million.

<unk> told you it's about changing that.

Secondly, we enjoy huge potential in penetrating more of Jd's gives us.

Currently internet companies are focusing on cultivating the mindset for LNG demand retail among our own user base.

Which means limited head on competition among one another.

This is Peter.

<unk> purposeful shop has with demand higher merchandise quality and the delivery speed I believe its more efficient for us to convert them into on demand retail consumers and we remain confident in.

In penetrating 50% of their J D user base in the long run.

That's the one that says when something from other tissues.

Nutrisystem Couto assumes in terms of where you need it.

So Chen Tong secrets issue that's ended up.

Johann look with just tribute to focus on the Saudi Tivo content carbon agenda, let me.

It turns out that you use if you take what's your sense of should I shouldn't.

This is Jamie.

Poussaint tuition kimpton since.

Sure So Ken Caldeira credentials, Brooklyn, cognizant, when chunks of the tongue shortness of cheaper under you move that needle.

And thirdly on top.

Market share gains.

Value of sustainable growth by balancing growth and profitability.

Through a combination of efforts in optimizing subsidies improving delivery efficiency and increasing online marketing monetization.

Perfect ability of J D. D. J has improved significantly in the past few quarters to near breakeven.

In the long run we also believe that <unk> has higher profitability potential compared with other players that are significantly higher <unk> and online marketing monetization rate.

Thank you.

She didn't deteriorate.

Thank you.

Okay Sir.

Yeah.

Your next question comes from Alicia Yap with Citi. Please go ahead.

Hi.

By any chance you think there are some other tier one.

Now going to igo sure sounds good team is Oh go ahead Changyou fought out people sure sure you find that Shan Shan <unk> doses, how should you think no club.

T E C. H took a sheet sure that you've got.

Falcon.

<unk>.

Do you see.

Now what im telling you that uses all quite a strong Shuja hall, so got how sure Glenn Sage how should you think you've made a huge show.

You see I mean, we definitely want to go city, you got Lucky and I Hope you don't go once you know it sounds odd when you calculate your T shirts at the end of the trial, but when conduct your thoughts about Q2 tissues ship Ah shall Jonathan Bush also uhm ammonia <unk> Santiago you can shoot Shaw Oh, no it doesn't.

So at the time that Shan Shan Shan English T J C no somewhat.

Cause you to England to shelf, what I'll I'll check one in Shanxi Zhejiang.

So glad she saw that I'm not sure.

Paul can you find yourself thanks.

Thanks for taking my questions. My first question is a follow up on our management comment regarding the supermarket and the electronics category before to think I think the first three weeks of October and then taking those things rebound and so just wondering what is the demand trend post single state.

Is that you're expecting for supermarket and non supermarket category and then second question is on the cost of riders.

So can I understand the increase in the cost of writers is related to.

These intra city delivery is it anything related depending on the type of the chain merchants that you're servicing.

And which specific order demand during these tweaking that resulted in the higher rider cost do we expect a higher rider cost into <unk> given it is a promotional season and potentially coda later thank you.

Thank you Alicia solicit academia gesture.

Two questions. So for the first question. So it's just like the weekend. So we finished like everybody and then campaign so still there isn't it.

I don't think there is enough time for us to evaluate like that just three days.

Details to give you some color I'll comment for the post pandemic campaigns.

And.

So in terms of the second question. So about the right account so in terms of the <unk>.

<unk>.

One of the rider costs, yes, it's increase either on Q on Q level or year over year cost overall.

Overall, and it's still growing robustly, especially our.

And I know it is growing by 29%, but within which allow key accounts and assets growing by five percentage.

We have discussed before so.

So this is just the cost overall and yes, it's growing in terms of like the.

The unit cost.

Kurt.

The level of occurred.

Jimmy level basically.

<unk>.

Efficient and safe.

Year over year basis.

In Q3, basically because usually it's next to.

The summer season so.

It takes more to recruit and retain riders compared to springtime or.

Like the autumn season.

So in Q4, we believe.

Year over year basis, our price.

Our unit cost.

For the riders will decrease on a year over year basis.

Okay.

Okay. Thank you you bet.

The next question comes from <unk>, Zhang with Bank of America. Please go ahead.

Oh, Hi, My Name's, Doug that's a hospital is all of that Oh.

Can you go one pieces outweigh all woman kitchen, and gorgeous about you can say that Manhattan chunky thought Oh, it's all quite Oh, taking Chico, yeah, Gwen had bilateral Wilmington south.

Now I have long ago, and he said, it's always hard to say how that what makes oce, yeah completely I cannot go check out ship almost all of it.

Oh sure breakdowns in Guangxi and things like.

That woman, that's all got support or should I go about yourself, what you said.

Oh Gee, that's not about that.

Thank you.

That's for taking my question My first question.

Regarding the impact from our pro were nowhere, that's correct quote off of a spread anyway to RMB.

In Q3, and can you share more color all day.

I can tell I noticed that that we have just cut all of a sudden.

So anyway, they paid the Lamborghini double the allowance. Okay. You gave us all a mole sauce on how on your momentum regarding lifestyle anymore without thank you.

Oh, that's great.

Kitty narrower window 10 user.

This is Jim.

And we keep them full guy that's a subscription mode.

Yes, Hi, this is <unk>.

To conclude that Houston.

So could end up at 600.

<unk> won a bias in Tulsa to listen.

And bent on Friday advantage here.

I'm not.

So that's happened yet.

With that Sylvia familiar to you Sunil.

Put under funding.

We don't do.

Thank you for your question.

The end of July delivery fee waiver campaign has hovered ethically supermarket orders.

And after that we've found.

Post conversion rates and repeat purchase rates increased.

<unk> remained largely stable.

Specifically and August comparator with July the overall conversion rate of our supermarkets category improved by over 10% and then next month retention rate also increased by over 10%.

It will be was substantially unchanged.

Do you think she's format, that's whole suite that G&A to essentially say.

Okay.

And at <unk> Castle.

So I think Tony.

Chinese made some thoughtful and critical link with the tungsten that's useful.

And therefore, thanks to the initiative.

Year over year growth.

Deanna.

In the supermarket category accelerated in the third quarter of 293 compared with <unk>.

Second quarter.

And the program will be a long term initiative to prove improve user experience.

So we didn't come into the tenure so European telethon that includes an institution without debit CGM, albeit it yourself with that Vishal.

And in terms of their P&L impact since the cost of delivery fee waiver is shared by us and our merchant partners. The impact on the direct margin of J D. D. J is and that's what it sounds hips and manageable for us.

Ah report from BMO EMEA chips.

The important thing to say that there's a huge shift.

So some of what should I say, that's something you know about.

That's at least how soot sensing chassis <unk>.

So I can most impact takes you the total tonnes to the components of growth.

This will remain so.

Thank you Maria.

Yes, we do.

We will hit that <unk>, so some of the other two.

Yes.

This is Tim cope with their cellphone now proven silicon Glen as you sort of talk about that one.

Southeast sequence reports and Delta <unk> agenda.

To answer your second question about large streaming yes, we've taken out the rising popularity of live streaming during the singles day promotion that just ended.

J D D J and launched multiple live streaming events, together with merchants and brands and categories, including supermarkets consumer electronics and home appliances.

This was the first time.

That's our frontline professional teams are engaged with three tenants are engaging with consumers to offer them value for money products deliverable within one hour and we did see initial results with some sessions, attracting total viewers exceeding $1 million.

Total CMV transacted via live streaming agreement more than tenfold versus June 18th promotion.

I think <unk> got some on the full moon iPad essentials.

So the mobile core yields in the U S.

Since deploying the other second harvest CFO.

And that's something that you would assume it would appear that.

No no no.

To your question it sounds I think Toyota tundra.

On behalf of Tim Poole Tibor.

We will keep weakened Canadian that sells tobacco, which again.

Overall, we are still in exploration stage for the live streaming business, we plan to further optimize stone protest and enhanced our product capability.

Integrate lbs with live streaming and.

In the future. We were also going to encourage local merchants on our platform to host regular live streaming session. So as to provide argues that there's more immersive on demand shopping experience.

Thanks for your question.

Okay.

Our next question comes from weighs on with UBS. Please go ahead.

Hey, Glenn Saldanha Guy He's got all the T map natural channel was onshore dollars agile Regina studio gentleman that I know the shallow zones, who should be you'll know that quite a mcdonald's shuffle teaching institutions I suppose you do ammonia, which you should not put homes also showed jaco that they'll have with somebody enhance I Wonder you said you do come in anywhere near the Chartwell.

I Hope you have a housekeeping question in Chicago and I'm not sure. Your line is open and how much actually that you do that you know GMB mix, how it will be that you all know how gratifying.

My first question is that we see that in our revenue growth is outgrowing our J D. D day. This quarter do we expect that trend to continue in the fourth quarter of next year and also that's but that the revenue mix shift how would that impact our margin outlook in the fourth quarter next year as well and secondly, just housekeeping question can management share the agenda.

And it'll be trend in this quarter. Thank you.

Okay.

Okay. So.

The first question. So basically we expect steel to platforms will grow.

Using similar speed in the following quarters or next year. So for the second question about Jamie mix. So.

The broader superpower categories as comp.

Accounting for close to 50% of the Jimmy amount, while it <unk> account for 40% of the total Jamie amount.

And in terms of the average order value so.

In Q3.

There will be years like.

100 and.

I'm, sorry, Joe and John.

Amit.

This is the update for Q3 thank.

Thank you.

Yeah.

Hey, Gateway has come to the end of our Q&A session I will now hand, it back to Ms. Caroline Dong for closing remarks.

Thank you operator in closing on behalf of that as a management team we would like to thank you for the physician participation in today's call. If you require any further information please feel free to reach out for US directly. Thank you for joining US today. This concludes the call.

That does conclude our conference for today. Thank you for participating you may now disconnect.

Yeah.

Okay.

Yeah.

Okay.

[noise].

Okay.

[noise].

Okay.

[music].

Good morning, ladies and gentlemen, and thank you for standing by for <unk> third quarter 2023 earnings Conference call.

At this time all participants are in a listen only mode.

After the management's prepared remarks, there'll be a question and answer session.

As a reminder, today's conference is being recorded.

I'll now turn the meeting over to your host for today's call Ms. Caroline Dong Tito Investor Relations for data. Please proceed Carolyn.

Thank you operator, Hello, everyone and thank you for joining our third quarter 2023 earnings conference call on the call today from data, we have Mr. Jack <unk>, President and Mr. Chen CFO.

Mr. Hoh will talk about our operations and company highlights then Mr. Chen will discuss the financials and guidance.

Please carefully know that during the Q&A session. Jennifer will answer your question in Chinese and then consecutive translation will be provided.

In case of any discrepancy can be our regional remark and the relay and the translated version statements ACL original remarks should playful.

Before we begin I'd like to remind you that this conference call contains forward looking statements. Please refer to our latest the safe Harbor statement in the earnings press release on our IR website, which applies to this call.

Please know that alight otherwise stated all figures mentioned during this conference call are in RMB.

It is now my pleasure to introduce our president.

Jeff. Please go ahead.

Thank you Gary and thank you all for joining us today.

The third quarter.

<unk>.

Okay.

Global sustain this.

Impressive top line growth and modest gains.

<unk> operating efficiency.

Our total revenues increased by 20%.

And adjusted net margin improved by.

Yeah, one percentage points, yes.

Yes.

I'll, let begin today's presentation with updates.

Cooperation with JD com.

And our performance to the tablet 11 shopping festival.

Further by our pacing highlights for our two platforms.

I will definitely go to back.

Back.

Thank you through our detailed financial results.

Chris.

Scott.

<unk> Dot com.

In October.

Got that drop in the turbine dot com had an on demand at the <unk> conference.

And that coupled with the reason.

With that one.

And we had the effect at some things in both fuel consumption and neighborhood of pellets and accretive jobs.

Particularly in the next five years.

It is easier in the back on all improved facility to on demand consumption.

Once again.

And now with our ecosystem partners.

So that was a digital transformation of more than two move in back end.

<unk> staff.

And accumulatively create or 10 million flexible new core opportunities.

This not only demonstrates our strong confidence unit potential of on demand that would tell you that is true.

But also our commitment.

So and in social responsibility.

So I think they'll come into us with Janssen.

To achieve these goals.

Yes.

I'd like to provide highlights from the result of WWE shop with us.

Well give you detail.

<unk>.

All time high.

In the T&D throughout the promotion grew robustly.

With multiple telcos that Justin keyboard, which is gross.

Including new crop.

Mom and baby products.

Installation and the convenience stores.

With that I'll now.

Further on the peak day and knock on the Codell.

Hi, all.

15 million.

And the total auto repair that listed.

200, and median during the promotion period.

With more onto the operational highlights for our two stephane.

Starting with what we do here.

Video on demand platform in China.

In the third quarter.

We continue to strengthen and expand our partnerships with select pallets and advance.

And further enhanced our capabilities and technology innovation.

Having recently Taylor Corporation.

During this quarter, we continue to broaden and deepen our cooperation with tell us.

With our product offerings.

Okay.

September.

Good evening Dear has on boarded more than 400000 independent stores.

In the silver market politically.

We added a more top supermarket tends to our platform.

And to have low debt.

Partnerships with Nike.

<unk> out of the top 100.

Supermarket with Tencent in China.

After we launch.

Also the labor content and put a majority of sugar markets across the country at the end of July.

We saw lots of an increase.

User engagement.

Evidenced by the improvement in both retention loop and the purchase frequency among our USS supermarket tested.

We also made progress in our cooperation with <unk>.

Laser colonial in the stores.

The attendance.

Moving to Germany, Germany is a bank in London.

C stores.

On growing more than eight times year on year.

Q3 2023 Dada Nexus Ltd Earnings Call

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