Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Registration Statement | false |
Document Shell Company Report | false |
Document Type | 20-F |
Document Annual Report | true |
Document Transition Report | false |
Document Period End Date | Dec. 31, 2021 |
Entity File Number | 001-39305 |
Entity Registrant Name | Dada Nexus Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 22/F, Oriental Fisherman’s Wharf |
Entity Address, Address Line Two | No. 1088 Yangshupu Road |
Entity Address, Address Line Three | Yangpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200082 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 927,776,552 |
Entity Central Index Key | 0001793862 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
ICFR Auditor Attestation Flag | true |
Auditor Name | Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Auditor Firm ID | 1113 |
Auditor Location | Shanghai, the People's Republic of China |
Ordinary shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary shares, par valueUS$0.0001 per share* |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
American depositary shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares (each ADS represents four of our ordinary shares, par value US$0.0001 per share) |
Trading Symbol | DADA |
Security Exchange Name | NASDAQ |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | 22/F, Oriental Fisherman’s Wharf |
Entity Address, Address Line Two | No. 1088 Yangshupu Road |
Entity Address, Address Line Three | Yangpu District |
Entity Address, City or Town | Shanghai |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 200082 |
Contact Personnel Name | Beck Zhaoming Chen |
Contact Personnel Email Address | ir@imdada.cn |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 512,830 | $ 80,474 | ¥ 5,461,264 |
Restricted cash | 58,020 | 9,105 | 59,791 |
Short-term investments | 1,193,909 | 187,350 | 770,000 |
Accounts receivable, net of allowance for credit losses of nil as of December 31, 2020 and 2021 | 352,324 | 55,288 | 403,584 |
Inventories, net | 6,344 | 996 | 5,410 |
Amount due from related parties | 840,667 | 131,919 | 646,341 |
Prepayments and other current assets | 479,017 | 75,168 | 175,592 |
Total current assets | 3,443,111 | 540,300 | 7,521,982 |
Property and equipment, net | 37,555 | 5,893 | 39,640 |
Goodwill | 957,605 | 150,269 | 957,605 |
Intangible assets, net | 332,317 | 52,148 | 507,964 |
Operating lease right-of-use assets | 76,811 | 12,053 | 107,120 |
Long-term time deposits | 400,000 | 62,769 | 400,000 |
Other non-current assets | 33,181 | 5,207 | 12,715 |
Total non-current assets | 1,837,469 | 288,339 | 2,025,044 |
TOTAL ASSETS | 5,280,580 | 828,639 | 9,547,026 |
Current liabilities (including amounts of the consolidated VIE without recourse to the Company. See Note 2.2): | |||
Short-term loan | 100,000 | 15,692 | 600,000 |
Accounts payable | 9,800 | 1,538 | 13,846 |
Notes payable | 170,000 | ||
Payable to riders and drivers | 580,983 | 91,169 | 717,496 |
Amount due to related parties | 71,760 | 11,261 | 52,918 |
Accrued expenses and other current liabilities | 620,406 | 97,355 | 814,991 |
Operating lease liabilities | 35,759 | 5,611 | 41,737 |
Total current liabilities | 1,418,708 | 222,626 | 2,410,988 |
Deferred tax liabilities | 27,000 | 4,237 | 38,558 |
Non-current operating lease liabilities | 46,243 | 7,257 | 69,525 |
Total non-current liabilities | 73,243 | 11,494 | 108,083 |
TOTAL LIABILITIES | 1,491,951 | 234,120 | 2,519,071 |
Commitments and contingencies | |||
SHAREHOLDERS' EQUITY | |||
Ordinary shares (US$0.0001 par value, 2,000,000,000 and 2,000,000,000 shares authorized, 941,450,185 and 955,876,116 shares issued, 941,450,185 and 927,776,552 shares outstanding as of December 31, 2020 and 2021, respectively) | 633 | 99 | 639 |
Additional paid-in capital | 15,714,015 | 2,465,872 | 16,442,721 |
Accumulated deficit | (11,816,229) | (1,854,224) | (9,345,102) |
Accumulated other comprehensive loss | (109,790) | (17,228) | (70,303) |
TOTAL SHAREHOLDERS' EQUITY | 3,788,629 | 594,519 | 7,027,955 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | ¥ 5,280,580 | $ 828,639 | ¥ 9,547,026 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, net of allowance for doubtful accounts | ¥ | ¥ 0 | ¥ 0 |
Ordinary shares, shares authorized | 2,000,000,000 | 2,000,000,000 |
Ordinary shares, shares issued | 955,876,116 | 941,450,185 |
Ordinary shares, shares outstanding | 927,776,552 | 927,776,552 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||
Net revenues (including related party revenues of RMB1,967,723, RMB3,008,947 and RMB2,339,013 for the years ended December 31, 2019, 2020 and 2021, respectively) | ¥ 6,866,262 | $ 1,077,466 | ¥ 5,739,989 | ¥ 3,099,698 |
Costs and expenses | ||||
Operations and support | (5,139,102) | (806,437) | (4,721,311) | (2,845,872) |
Selling and marketing | (3,427,909) | (537,914) | (1,848,730) | (1,414,540) |
General and administrative | (400,397) | (62,831) | (498,826) | (281,376) |
Research and development | (573,949) | (90,065) | (428,849) | (333,844) |
Other operating expenses | (60,326) | (9,467) | (67,137) | (49,669) |
Total costs and expenses | (9,601,683) | (1,506,714) | (7,564,853) | (4,925,301) |
Other operating income | 156,714 | 24,592 | 60,779 | 75,884 |
Loss from operations | (2,578,707) | (404,656) | (1,764,085) | (1,749,719) |
Other income (expenses) | ||||
Interest income | 110,954 | 17,411 | 65,596 | 84,276 |
Interest expenses | (13,806) | (2,166) | (11,830) | |
Foreign exchange loss | (1,126) | (177) | (13,370) | |
Total other income | 96,022 | 15,068 | 53,766 | 70,906 |
Loss before income tax benefits | (2,482,685) | (389,588) | (1,710,319) | (1,678,813) |
Income tax benefits | 11,558 | 1,814 | 5,143 | 9,032 |
Net loss | (2,471,127) | (387,774) | (1,705,176) | (1,669,781) |
Accretion of convertible redeemable preferred shares | ¥ | (375,649) | (795,015) | ||
Net loss available to ordinary shareholders of Dada Nexus Limited | ¥ (2,471,127) | $ (387,774) | ¥ (2,080,825) | ¥ (2,464,796) |
Net loss per ordinary share: | ||||
Basic | (per share) | ¥ (2.60) | $ (0.41) | ¥ (3.12) | ¥ (6.80) |
Diluted | (per share) | ¥ (2.60) | $ (0.41) | ¥ (3.12) | ¥ (6.80) |
Weighted average shares used in calculating net loss per ordinary share: | ||||
Basic | 950,697,557 | 950,697,557 | 667,844,843 | 362,644,898 |
Diluted | 950,697,557 | 950,697,557 | 667,844,843 | 362,644,898 |
Net loss | ¥ (2,471,127) | $ (387,774) | ¥ (1,705,176) | ¥ (1,669,781) |
Other comprehensive loss | ||||
Foreign currency translation adjustments, net of tax of nil | (39,487) | (6,196) | (209,963) | (446) |
Total comprehensive loss | ¥ (2,510,614) | $ (393,970) | ¥ (1,915,139) | ¥ (1,670,227) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | |||
Related party revenues | ¥ 2,339,013 | ¥ 3,008,947 | ¥ 1,967,723 |
Foreign currency translation adjustments, tax value | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Ordinary sharesCNY (¥)shares | Additional paid-in capitalCNY (¥) | Subscription receivablesCNY (¥) | Accumulated deficitCNY (¥) | Accumulated other comprehensive income (loss)CNY (¥) | CNY (¥) | USD ($) |
Beginning balance at Dec. 31, 2018 | ¥ 232 | ¥ 1,052,954 | ¥ (35) | ¥ (5,970,145) | ¥ 140,106 | ¥ (4,776,888) | |
Beginning balance (in shares) at Dec. 31, 2018 | shares | 362,197,963 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of ordinary shares for vested restricted share units | ¥ 5 | (5) | |||||
Issuance of ordinary shares for vested restricted share units (in shares) | shares | 7,092,666 | ||||||
Share-based compensation | 51,168 | 51,168 | |||||
Net loss | (1,669,781) | (1,669,781) | |||||
Accretion of convertible redeemable preferred shares | (795,015) | (795,015) | |||||
Foreign currency translation adjustments | (446) | (446) | |||||
Ending balance at Dec. 31, 2019 | ¥ 237 | 309,102 | (35) | (7,639,926) | 139,660 | (7,190,962) | |
Ending balance (in shares) at Dec. 31, 2019 | shares | 369,290,629 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 360,078 | 360,078 | |||||
Net loss | (1,705,176) | (1,705,176) | |||||
Accretion of convertible redeemable preferred shares | (375,649) | (375,649) | |||||
Foreign currency translation adjustments | (209,963) | (209,963) | |||||
Issuance of ordinary shares for public offerings, net of issuance costs of RMB 39,316 | ¥ 87 | 5,173,926 | 5,174,013 | ||||
Issuance of ordinary shares for public offerings, net of issuance costs of RMB 39,316 (in shares) | shares | 125,491,548 | ||||||
Conversion of preferred shares upon completion of initial public offering ("IPO") | ¥ 311 | 10,968,364 | 10,968,675 | ||||
Conversion of preferred shares upon completion of initial public offering ("IPO") (in shares) | shares | 439,646,388 | ||||||
Share issued for exercise of stock options and vest of restricted share units | ¥ 4 | 6,900 | 6,904 | ||||
Share issued for exercise of stock options and vest of restricted share units (in shares) | shares | 7,021,620 | ||||||
Collection of subscription receivable | ¥ 35 | 35 | |||||
Ending balance at Dec. 31, 2020 | ¥ 639 | 16,442,721 | (9,345,102) | (70,303) | 7,027,955 | ||
Ending balance (in shares) at Dec. 31, 2020 | shares | 941,450,185 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 207,943 | 207,943 | |||||
Net loss | (2,471,127) | (2,471,127) | $ (387,774) | ||||
Foreign currency translation adjustments | (39,487) | (39,487) | (6,196) | ||||
Share issued for exercise of stock options and vest of restricted share units | ¥ 12 | 31,742 | 31,754 | ||||
Share issued for exercise of stock options and vest of restricted share units (in shares) | shares | 14,425,931 | ||||||
Repurchase of ordinary shares | ¥ (18) | (968,391) | (968,409) | ||||
Repurchase of ordinary shares (in shares) | shares | (28,099,564) | ||||||
Ending balance at Dec. 31, 2021 | ¥ 633 | ¥ 15,714,015 | ¥ (11,816,229) | ¥ (109,790) | ¥ 3,788,629 | $ 594,519 | |
Ending balance (in shares) at Dec. 31, 2021 | shares | 927,776,552 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
Issuance cost | ¥ 38,821 |
Ordinary shares | |
Issuance cost | ¥ 39,316 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (2,471,127) | $ (387,774) | ¥ (1,705,176) | ¥ (1,669,781) |
Adjustments to reconcile net loss to net cash used in operating activities | ||||
Depreciation and amortization | 192,567 | 30,218 | 201,272 | 215,664 |
Share-based compensation | 207,943 | 32,631 | 360,078 | 51,168 |
Loss (gain) from disposal of property and equipment | (133) | (20) | 82 | (1,442) |
Valuation allowance for inventories | 176 | 28 | 413 | |
Foreign exchange loss | 1,126 | 177 | 13,370 | |
Reversal for doubtful accounts | (316) | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 51,260 | 8,044 | (365,350) | (7,574) |
Inventories, net | (1,561) | (245) | (1,937) | 4,001 |
Amount due from related parties | (194,326) | (30,494) | (337,659) | (149,319) |
Prepayments and other current assets | (65,491) | (10,277) | (84,995) | (3,261) |
Operating lease right-of-use assets | 30,309 | 4,756 | 17,890 | |
Other non-current assets | (20,467) | (3,212) | (6,785) | 187 |
Accounts payable | (4,046) | (635) | 3,922 | 1,262 |
Notes payable | (170,000) | (26,677) | 170,000 | |
Amount due to related parties | 18,842 | 2,957 | (29,882) | 28,498 |
Payable to riders and drivers | (136,513) | (21,422) | 336,155 | 101,244 |
Accrued expenses and other current liabilities | (55,321) | (8,681) | 357,773 | 127,493 |
Deferred tax liabilities | (11,558) | (1,814) | (5,143) | (9,032) |
Operating lease liabilities | (29,260) | (4,592) | (18,865) | |
Net cash used in operating activities | (2,657,580) | (417,032) | (1,108,207) | (1,297,838) |
Cash flows from investing activities: | ||||
Proceeds from disposal of short-term investments | 2,439,391 | 382,794 | 7,313,119 | 4,444,043 |
Purchase of short-term investments | (2,871,407) | (450,586) | (7,119,080) | (4,680,033) |
Purchase of long-term time deposits | (400,000) | |||
Purchase of property and equipment and intangible assets | (16,880) | (2,649) | (23,890) | (31,762) |
Proceeds from disposal of property and equipment | 166 | 26 | 94 | 292 |
Loan provided to third party companies (see Note 5) | (446,223) | (70,022) | ||
Loan settled by third party companies (see Note 5) | 208,290 | 32,685 | ||
Net cash used in investing activities | (686,663) | (107,752) | (229,757) | (267,460) |
Cash flows from financing activities: | ||||
Proceeds from short-term loan | 100,000 | 15,692 | 600,000 | |
Repayment of short-term loan | (600,000) | (94,153) | ||
Proceeds from public offerings, net of issuance costs paid of RMB 38,821 | 5,174,508 | |||
Proceeds from exercise of share options | 31,754 | 4,983 | 6,904 | |
Repurchase of ordinary shares | (968,409) | (151,965) | ||
Proceeds from (payment of) stock sold on behalf of employees | (117,850) | (18,493) | 110,103 | |
Proceeds from subscription receivable | 35 | |||
Net cash provided by (used in) financing activities | (1,554,505) | (243,936) | 5,891,550 | |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (51,457) | (8,075) | (188,664) | (22,575) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (4,950,205) | (776,795) | 4,364,922 | (1,587,873) |
Cash and cash equivalents and restricted cash, beginning of the year | 5,521,055 | 866,374 | 1,156,133 | 2,744,006 |
Cash and cash equivalents and restricted cash, end of the year | ¥ 570,850 | $ 89,579 | ¥ 5,521,055 | ¥ 1,156,133 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
Cash and cash equivalents | ¥ 512,830 | ¥ 5,461,264 | $ 80,474 | ||
Restricted cash | 58,020 | 59,791 | 9,105 | ||
Total cash, cash equivalents, and restricted cash | 570,850 | 5,521,055 | ¥ 1,156,133 | $ 89,579 | |
Supplemental disclosure for cash flow information | |||||
Cash paid for interest | 5,013 | $ 787 | 21,718 | ||
Supplemental disclosure of non-cash investing and financing activities: | |||||
Accretion of convertible redeemable preferred shares | 375,649 | 795,015 | |||
Payables related to property and equipment | ¥ (655) | $ (103) | (1,321) | ¥ (8,852) | |
Issuance cost | ¥ 38,821 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS Dada Nexus Limited (the "Company") was incorporated under the laws of the Cayman Islands on July 8, 2014. The Company through its wholly-owned subsidiaries, variable interest entity ("VIE") and VIE’s subsidiaries (collectively, the "Group") primarily provides delivery service and marketplace service to its customers through its mobile platforms, websites and mini programs. The Group’s principal operations and geographic markets are in the People’s Republic of China ("PRC"). As of December 31, 2021, the Company’s major subsidiaries and consolidated VIEs are as follows: Percentage of direct or indirect Place of Date of incorporation / economic Name of Company incorporation acquisition ownership Principal activities Subsidiaries Dada Group (HK) Limited ("Dada HK") Hong Kong July 24, 2014 100 % Investment holding Dada Glory Network Technology (Shanghai) Co., Ltd. ("Dada Glory") PRC November 7, 2014 100 % Providing services in connection with on-demand delivery platform ("Dada Now") Shanghai JD Daojia Yuanxin Information Technology Co., Ltd. ("Shanghai JDDJ") PRC April 26, 2016 100 % Providing services in connection with on-demand retail platform ("JDDJ") VIE Shanghai Qusheng Internet Technology Co. Ltd. ("Shanghai Qusheng") PRC July 2, 2014 100 % Holding value-added telecommunications services license of Dada Now and maintaining Dada Now website VIE's Subsidiary Shanghai JD Daojia Youheng E-Commerce Information Technology Co., Ltd. ("JDDJ Youheng") PRC December 3, 2015 100 % Holding value-added telecommunications services license of JDDJ and maintaining JDDJ website |
PRINCIPAL ACCOUNTING POLICIES
PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
PRINCIPAL ACCOUNTING POLICIES | |
PRINCIPAL ACCOUNTING POLICIES | 2. PRINCIPAL ACCOUNTING POLICIES 2.1 Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for the years presented. 2.2 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries in which it has a controlling financial interest. The results of the subsidiaries, VIE and VIE’s subsidiaries are consolidated from the date on which the Company obtained control and continue to be consolidated until the date that such control ceases. All intercompany balances and transactions between the Group, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated in consolidation. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements In order to comply with the PRC laws and regulations which prohibit or restrict foreign control of companies involved in provision of internet content and other restricted businesses, the Group operates its websites and other restricted businesses in the PRC through Shanghai Qusheng, whose equity interests are held by certain management members and shareholders of the Group ("Nominee Shareholders"), and its wholly-owned subsidiary, JDDJ Youheng. On November 14, 2014, Dada Glory entered into a series of contractual agreements with Shanghai Qusheng and its shareholders, which were amended subsequently primarily for change of nominee shareholders. The following is a summary of the agreements which allow Dada Glory to exercise effective control over Shanghai Qusheng: Share Pledge Agreements Pursuant to the share pledge agreements, each of the shareholders of the VIE has pledged the security interest in their respective equity interests in the VIE, representing 100% equity interests in the VIE in aggregate to Dada Glory, to guarantee performance by the shareholders of their obligations under the powers of attorney, the exclusive business cooperation agreement and the exclusive option agreement, as well as the performance by the VIE of its obligations under the exclusive business cooperation agreement and the exclusive option agreement. In the event of a breach by the VIE or any of its shareholders of contractual obligations under these contractual arrangements, Dada Glory, as pledgee, will have the right to take possession of and dispose of the pledged equity interests in the VIE and will have priority in receiving the proceeds from such disposal. The shareholders of the VIE also covenant that, without the prior written consent of Dada Glory, they shall not transfer or agree to other’s transfer of the pledged equity interests, create or allow any new pledge or any other encumbrance on the pledged equity interests. The equity interest pledge agreement will remain effective until the contractual obligations are fully fulfilled and terminated. During the equity pledge period, Dada Glory is entitled to all dividends and other distributions generated by the VIE. Exclusive Business Cooperation Agreement Pursuant to the exclusive business cooperation agreement between Dada Glory and the VIE, Dada Glory has the exclusive right to provide the VIE with complete business support and technical and consulting services, including but not limited to technical services, network support, business consultations, intellectual property licenses, equipment or leasing, marketing consultancy, system integration, product research and development, and system maintenance. Without Dada Glory’s prior written consent, the VIE may not accept any consultations and/or services regarding the matters contemplated by this agreement provided by any third party during the term of the agreement. The VIE agrees to pay Dada Glory service fees at an amount equals to 100% of the net income generated by the VIE, which should be paid on a monthly basis. Dada Glory has the exclusive ownership of all he intellectual property rights created as a result of the performance of the exclusive business cooperation agreement. To guarantee the VIE’s performance of its obligations thereunder, the shareholders of the VIE have pledged all of their equity interests in the VIE to Dada Glory pursuant to the share pledge agreement. The exclusive business cooperation agreement has an initial term of 10 years and shall be extended if confirmed in writing by Dada Glory prior to the expiration. The extended term shall be determined by Dada Glory, and the VIE shall accept such extended term unconditionally. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued Exclusive Option Agreements Pursuant to the exclusive option agreements, each of the shareholders of the VIE has irrevocably granted Dada Glory, or any person designated by Dada Glory, an exclusive option to purchase all or part of its equity interests in the VIE. Dada Glory may exercise such options at a price equal to the lowest price as permitted by applicable PRC laws at the time of transfer of equity. The VIE and the shareholders of the VIE covenant that, without Dada Glory’s prior written consent, they will not, among other things, (i) supplement, change or amend the VIE’s articles of association and bylaws, (ii) increase or decrease the VIE’s registered capital or change its structure of registered capital, (iii) create any pledge or encumbrance on their equity interests in the VIE, other than those created under the equity interest pledge agreement, (iv) sell, transfer, mortgage, or dispose of their legal or beneficial interests in and any assets of the VIE and any legal or beneficial interests, (v) enter into any material contract by the VIE, except in the ordinary course of business, or (vi) merge or consolidate the VIE with any other entity. The exclusive option agreement has an initial term of ten years, and at the end of the initial term shall be renewed for a further term as specified by Dada Glory or terminated by Dada Glory in its sole discretion. Powers of Attorney Pursuant to the power of attorney, each of the shareholders of the VIE has executed a power of attorney to irrevocably authorize Dada Glory, or any person designated by Dada Glory, to act as its attorney-in-fact to exercise all of its rights as a shareholder of the VIE, including, but not limited to, the right to propose, convene and attend shareholders’ meetings, (ii) vote on any resolution on behalf of the shareholders that require the shareholders to vote under PRC law and the VIE’s articles of association, such as the sale, transfer, pledge and disposal of all or part of a shareholder’s equity interest in the VIE, and designate and appoint the VIE’s legal representative, director, supervisor, chief executive officer and other senior management members on behalf of the shareholders. The powers of attorney will remain effective until such shareholder ceases to be a shareholder of the VIE or otherwise instructed by Dada Glory. U.S. GAAP provides guidance on the identification of VIE and financial reporting for entities over which control is achieved through means other than voting interests. The Group evaluates each of its interests in an entity to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affect the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. The irrevocable powers of attorney described above have conveyed all shareholder rights held by the VIE’s shareholders to Dada Glory, including the right to appoint board members who nominate the general managers of the VIE to conduct day-to-day management of the VIE’s businesses, and to approve significant transactions of the VIE. The exclusive option agreements provide Dada Glory with a substantive kick-out right of the VIE shareholders through an exclusive option to purchase all or any part of the shareholders’ equity interest in the VIE at the lowest price permitted under the PRC laws then in effect. In addition, through the exclusive business cooperation agreement, Dada Glory has established the right to receive benefits from the VIE that could potentially be significant to the VIE, and through the share pledge agreement, Dada Glory has, in substance, an obligation to absorb losses of the VIE that could potentially be significant to the VIE. As these contractual arrangements allow the Group to effectively control the VIE and to derive substantially all of the economic benefits from it, the Group has consolidated the VIE. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued Risks in relation to the VIE structure The Company believes that the contractual arrangements amongst Dada Glory, Shanghai Qusheng and their respective shareholders are in compliance with PRC law and are legally enforceable. The shareholders of Shanghai Qusheng are also shareholders of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, Shanghai Qusheng and their shareholders may fail to take certain actions required for the Company’s business or to follow the Company’s instructions despite their contractual obligations to do so. Furthermore, if Shanghai Qusheng or their shareholders do not act in the best interests of the Company under the contractual arrangements and any dispute relating to these contractual arrangements remains unresolved, the Company will have to enforce its rights under these contractual arrangements through the operations of PRC law and courts and therefore will be subject to uncertainties in the PRC legal system. All of these contractual arrangements are governed by PRC law and provided for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements, which may make it difficult to exert effective control over Shanghai Qusheng, and its ability to conduct the Company’s business may be adversely affected. The following amounts and balances of the consolidated VIE were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 512 3,961 Accounts receivable, net 367 760 Amount due from related parties 1,956 476 Prepayments and other current assets 6,851 3,287 Property and equipment, net 461 245 Intangible assets, net 12,774 10,938 Operating lease right-of-use assets 2,255 791 Other non-current assets — 93 Total assets 25,176 20,551 Payable to riders and drivers 1,313 404 Amount due to related parties 32 32 Accrued expenses and other current liabilities 13,885 12,542 Operating lease liabilities 830 192 Non-current operating lease liabilities 1,053 412 Total liabilities 17,113 13,582 Years ended December 31, 2019 2020 2021 RMB RMB RMB Net Revenues 3,183 3,293 13,104 Net loss (38,674) (49,741) (58,641) Net cash provided by operating activities 14,612 535 4,308 Net cash used in investing activities (14,604) (59) (859) 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued The VIE contributed approximately 0.1%, 0.1% and 0.2% of the Group’s consolidated net revenues for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2020 and 2021, the VIE accounted for approximately 0.3% and 0.4% of the consolidated total assets, and approximately 0.7% and 0.9% of the consolidated total liabilities, respectively. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE. However, if the VIE was ever to need financial support, the Group or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE or entrustment loans to the VIE. The Group believes that there are no assets held in the consolidated VIE that can be used only to settle obligations of the VIE, except for paid-in capital, additional paid-in capital ("APIC") and the PRC statutory reserves. As the consolidated VIE is incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Group for any of the liabilities of the consolidated VIE. Relevant PRC laws and regulations restrict the VIE from transferring a portion of their net assets, equivalent to the balance of their paid-in capital, APIC and PRC statutory reserve, to the Group in the form of loans and advances or cash dividends. 2.3 Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. 2.4 Functional currency and foreign currency translation The Group uses Renminbi ("RMB") as its reporting currency. The functional currency of the Company is the United States dollar ("US$" or "USD"). The functional currency of the Company’s subsidiaries, VIE and VIE’s subsidiaries is RMB or USD as determined based on the economic facts and circumstances. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the comprehensive loss. Assets and liabilities of the Company and its subsidiaries with functional currency other than RMB are translated into RMB at fiscal year-end exchange rates. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Income and expense items are translated at average exchange rates during the fiscal year. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as accumulated other comprehensive loss. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.5 Convenience translation The Group’s business is primarily conducted in China and almost all of its revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the then current exchange rates, for the convenience of the readers. Translations of balances in the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.3726 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2021, or at any other rate. 2.6 Cash and cash equivalents Cash and cash equivalents primarily consist of cash on hand and cash in bank which is highly liquid and unrestricted as to withdrawal and use. 2.7 Restricted cash The Group’s restricted cash mainly represents cash received from consumers and reserved in bank supervised accounts for payments to retailers on the on-demand retail platform. 2.8 Short-term investments Short-term investments include (i) wealth management products with variable interest rates that the Group expects to receive all the principles and will mature within one year; (ii) time deposits with original maturities longer than three months but less than one year. The Group classifies its investments in wealth management products as held-to-maturity securities, as the Group has the positive intent and ability to hold those securities to maturity. All wealth management products' maturity dates are within one year. The gains recognized from wealth management products recorded in interest income in consolidated statements of operations and comprehensive loss are RMB 6,928 , RMB 7,855 , and RMB 14,524 for the years ended December 31, 2019, 2020 and 2021, respectively. 2.9 Accounts receivable, net Accounts receivable mainly consists of amount due from the Group's customers, which is recorded net of allowance for credit losses.On January 1, 2021, the Group adopted Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326") using the modified retrospective transition method. ASC 326 replaces the incurred loss impairment model with a forward-looking current expected credit loss ("CECL") methodology, which results in more timely recognition of credit losses. The Group has developed a CECL model based on historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, and other factors that may affect its ability to collect from customers. The cumulative effect from the adoption as of January 1, 2021 was immaterial to the consolidated financial statements. 2.10 Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost or market value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is determined based upon factors such as historical and forecasted consumer demand, and promotional environment. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.11 Property and equipment, net Property and equipment is stated at cost less accumulated depreciation and impairment. Property and equipment is depreciated at rates sufficient to write off its costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Category Estimated useful lives Computer equipment 3 years Office facilities 3-5 years Vehicles 8 years Software 3-5 years Leasehold improvement Over the shorter of the expected useful life or the lease term Repairs and maintenance costs are charged to operating expenses as incurred, whereas the costs of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the other operating income or expenses of consolidated statements of operations and comprehensive loss. 2.12 Intangible assets, net Intangible assets purchased are recognized and measured at cost upon acquisition. The Group's intangible assets primarily comprise of business cooperation agreement ("BCA"), non-compete commitment ("NCC"), technology, trademark and domain name arising from the Group's acquisition of JDDJ business from JD.com, Inc. ("JD") in 2016, which are recognized and measured at fair value based on a valuation upon acquisition. Following the initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The identifiable intangible assets acquired are amortized on a straight-line basis over the respective useful lives as follows: Category Amortization Years BCA 7 NCC 7 Technology 3.7 Trademark and Domain Name 9-9.7 2.13 Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisition of JDDJ business from JD occurred in 2016 and there is no change to the carrying amount of goodwill as of December 31, 2020 and 2021. Goodwill is not amortized but is reviewed at least annually for impairment or earlier, if any indication of impairment exists. In evaluation of goodwill impairment, the Group performs a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the Group compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. The Group has determined it has only one reporting unit and applied quantitative assessment in its annual goodwill impairment analysis as of December 31 of each year. No goodwill impairment was recorded for 2019, 2020 and 2021 as the fair value of the reporting unit significantly exceeded its carrying value at each assessment date. 2. PRINCIPAL ACCOUNTING POLICIES – continued 2.13 Goodwill – continued Application of a goodwill impairment test in quantitative analysis requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. 2.14 Fair value measurement Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it transacts and considers assumptions that market participants use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.15 Revenue recognition The Group derives its revenues principally from merchants’, individual senders’ and retailers’ use of the Group’s core platforms in connection with on-demand retail platform services and on-demand delivery services. Revenue is stated net of value added tax, discounts and return allowances. Services The Group arranges for on-demand delivery services to be provided through Dada Now platform where it assists the customer, a merchant or an individual sender, in finding a rider to complete a delivery requested by the customer. The Group concludes that it acts as an agent in these transactions as it is not responsible for fulfilling the promise to provide the delivery services, nor does the Group have the ability to control the related services. The Group does not have the ability to control the services provided by riders due to the following: (i) the Group does not pre-purchase or otherwise obtain control of the riders’ services prior to their transfer to the customers; (ii) the Group does not guarantee an order could be taken by a rider; (iii) the Group cannot direct the riders to accept, decline or disregard a transaction request and (iv) the Group’s platform services do not include the delivery services provided to the customers by the riders. The service fee earned by the Group is the difference between the amount paid by the customer based on an upfront quoted fare and the amount earned by the rider based on expected delivery time, distance and other factors, which are both fixed at the time a transaction is entered into with a customer. The Group may record a loss from a transaction when an upfront quoted fare offered to the customer is less than the amount the Group is committed to paying to the rider. The revenue is recognized on a net basis at the point of delivery of merchandise. The loss on this type of transactions is recorded in operations and support costs in the consolidated statements of operations and comprehensive loss, as it is not related to any other current, previous or future transactions with the customer and in substance, is an expense paid to the rider. The losses included in operations and support costs were RMB96,131, RMB76,989 and RMB95,281 for the years ended December 31, 2019, 2020 and 2021, respectively. The Group provides on-demand retail platform services on JDDJ platform. The service revenues primarily consist of commission fees charged to retailers for participating in the Group’s online marketplace, where the Group acts as an agent and its performance obligation is to facilitate the retailers’ online sales of their goods and services through JDDJ. The Group is not primarily obligated to the consumers, does not take inventory risk, and does not have latitude over pricing of the merchandise. Upon successful sales, the Group charges the retailer a fixed rate commission fee based on the sales amount. Commission fee revenues are recognized on a net basis at the point of delivery of merchandise. In addition, the Group fulfills the delivery needs of retailers on JDDJ and other business customers on Dada Now by utilizing the Group’s network of registered riders on Dada Now. Under this type of services, the Group enters into agreements with retailers and other business customers, which enforce the Group’s acceptance of all the related delivery requests at the prices stipulated in the agreements. The Group has determined that it acts as the principal in these transactions as the Group is primarily responsible for the delivery of merchandise and has the ability to control the related services. The Group has the ability to control the services provided by riders as it is responsible for and guarantees identifying and directing riders that meet the quality criteria stipulated in the agreements to complete the deliveries requested by retailers or other business customers. Additionally, the Group has ultimate control over the amounts charged to the customers. Although in this type of services, the riders still have the ability to accept, decline or disregard a delivery assignment, it is the Group’s responsibility to find a replacement and complete the delivery timely. Revenues resulting from these services are recognized on a gross basis at a fixed rate or a pre-determined amount for each completed delivery, with the amounts paid to the riders recorded in operations and support costs. From September 2020, the Group started to engage truckers to provide freight services to logistics companies or merchants on Dada Now. The Group has determined that it acts as the principal in these freight transactions as it has the ability to control the freight services provided by truckers and primarily responsible for the freight services. The related revenue is included in service revenue under Dada Now as presented in the following table of disaggregation of revenues. The Group also provides online marketing services to brand owners and other business customers on JDDJ platform. Revenue is recognized when service is rendered. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.15 Revenue recognition – continued Other services provided by the Group comprise packaging services provided to retailers on JDDJ, and front-end warehouses services. Revenue is recognized when service is rendered. Goods Sales The Group operates its own e-commerce business and sells delivery equipment and other merchandise on Dada Now. The Group also sells merchandise through unmanned retail shelves. Revenue is recognized on a gross basis as the Group is acting as a principal in these transactions, is responsible for fulfilling the promise to provide the specified merchandise and also has pricing discretion. The Group recognizes revenues net of discounts and return allowances when the goods are delivered to the customers. Incentive programs Customer incentives The Group offers various incentive programs to merchants, individual senders and business customers in the form of coupons or volume-based discounts that are recorded as reduction of revenue as the Group does not receive a distinct good or service in consideration. Rider incentives The Group offers various incentive programs to riders, primarily in the form of volume-based incentives. The riders are not the Group's customers as they do not pay for their use of the Group's platform in any form. Therefore, for transactions where the Group acts as an agent and recognizes revenue on a net basis, the related rider incentives are recorded as a reduction of revenue. The incentive amount in excess of the related revenue is included in operations and support costs. For transactions where the Group acts as a principal and recognizes revenue on a gross basis, the related rider incentives are included in operations and support costs. For the years ended December 31, 2019, 2020 and 2021, incentives to riders recorded in operations and support costs were RMB192,243, RMB143,916 and RMB88,494, respectively, including incentives attributable to transactions where the Group acts as the principal of RMB158,763, RMB114,229 and RMB64,261, respectively. Consumer incentives The consumer incentives are offered to promote the Group's platform or brand owners' products in the form of promotion coupon on JDDJ, which are valid only during a limited period of time. These incentives are provided at the Group's discretion and are not contractually required by the retailers or brand owners. These incentives also do not reduce the overall pricing of the services provided by the Group. As the Group has no performance obligation to consumers, who are not the Group's customers,consume |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 3. FAIR VALUE MEASUREMENTS The Group's financial instruments mainly include cash and cash equivalent, restricted cash, short-term investments, accounts receivable, prepayments and other current assets, amount due from and due to related parties, long-term time deposit, accounts payable, short-term loan, payable to riders and drivers, and notes payable. The carrying amounts of short-term financial instruments approximate their fair value due to their short-term nature. The carrying values of long-term time deposits approximate their fair values as their interest rates are comparable to the prevailing interest rates in the market. Certain non-financial assets are measured at fair value on a nonrecurring basis, including property and equipment, operating lease right-of-use assets, goodwill and intangible assets and they are recorded at fair value only when impairment is recognized by applying unobservable inputs such as forecasted financial performance and discount rate to the discounted cash flow valuation methodology. During the years ended December 31, 2019, 2020 and 2021, the Group did not recognize any impairment of property and equipment . |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS As of December 31, 2020 2021 RMB RMB Wealth management products 470,000 568,909 Time deposits 300,000 625,000 Total 770,000 1,193,909 |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 5. PREPAYMENTS AND OTHER CURRENT ASSETS As of December 31, 2020 2021 RMB RMB Loan provided to third party companies (1) — 237,933 VAT receivable 32,031 133,050 Funds receivable from third party mobile and online payment platforms 51,370 49,310 Advance to suppliers mainly for cloud computing service 32,120 25,667 Interest receivable related to bank deposits and wealth management products 27,168 24,779 Deposits mainly for lease of premises 3,676 5,799 Prepaid interest expense 10,082 1,095 Other receivables 19,145 1,384 Prepayments and other current assets 175,592 479,017 Notes: (1) In 2021, the Group made available to third party companies a one- year revolving credit facility of up to RMB 300,000 . The annualized interest rate is 4.5% . |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 6. PROPERTY AND EQUIPMENT, NET Property and equipment and the accumulated depreciation are as follows: As of December 31, 2020 2021 RMB RMB Office facilities 4,864 5,260 Software 15,871 18,720 Computer equipment 10,492 15,551 Vehicles 1,186 1,873 Leasehold improvement 46,513 55,548 Total cost 78,926 96,952 Less: Accumulated depreciation (39,286) (59,397) Property and equipment, net 39,640 37,555 Depreciation expenses related to property and equipment were RMB17,189 and RMB18,826 for the years ended December 31, 2020 and 2021, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 7. INTANGIBLE ASSETS, NET Gross carrying amount, accumulated amortization and net book value of the intangible assets are as follows: As of December 31, 2020 2021 RMB RMB BCA 437,003 427,010 NCC 544,018 531,579 Trademark and domain name 339,471 340,053 Technology 96,000 96,000 Less: Accumulated amortization (908,528) (1,062,325) Intangible assets, net 507,964 332,317 Amortization expenses related to intangible assets were RMB184,083 and RMB173,741 for the years ended December 31,2020 and 2021, respectively. 7. INTANGIBLE ASSETS, NET - continued The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows: Future Amortization Expense RMB For the years ending December 31, 2022 174,844 2023 81,660 2024 35,114 2025 35,107 2026 and thereafter 5,592 Total 332,317 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2021 | |
OPERATING LEASES | |
OPERATING LEASES | 8. OPERATING LEASES For the years ended December 31, 2019, 2020 and 2021, the Group incurred operating lease costs amounting to RMB58,713, RMB47,915 (excluding RMB13,548 for short-term leases not capitalized as ROU assets) and RMB50,537 (excluding RMB9,256 for short-term leases not capitalized as ROU assets), respectively. Supplemental cash flow information related to operating leases included in operating lease assets and liabilities was as follows: Years Ended December 31, 2020 2021 RMB RMB Cash payments for amounts included in measurement of liabilities 48,890 49,864 New operating lease assets obtained in exchange for operating lease liabilities 24,688 18,744 ROU modification due to early surrender — (3,154) Lease liability modification due to early surrender — 2,778 As of December 31, 2020 and 2021, the Group's operating leases had a weighted average remaining lease term of 3.1 and 2.5 years and a weighted average discount rate of 4.8% and 4.8%, respectively. Future lease payments under operating leases, excluding short-term leases not capitalized, as of December 31, 2020 and December 31, 2021 were as follows: As of December 31, 2020 2021 RMB RMB Within one year 46,050 38,669 Within a period of more than one year but not more than two years 31,381 28,694 Within a period of more than two year but not more than three years 23,813 19,498 Within a period of more than three year but not more than four years 18,607 — Total future lease payments 119,851 86,861 Less: imputed interest 8,589 4,859 Total lease liability balance 111,262 82,002 Less: Current operating lease liabilities 41,737 35,759 Long-term operating lease liabilities 69,525 46,243 The future lease payments for short-term leases not capitalized as ROU assets were RMB2,327 and RMB3,620 as of December 31, 2020 and December 31, 2021, which will be paid within one year. |
SHORT-TERM LOAN
SHORT-TERM LOAN | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM LOAN | |
SHORT-TERM LOAN | 9. SHORT-TERM LOAN As of December 31, 2020 2021 RMB RMB Short-term bank borrowing 600,000 100,000 The Group borrowed a short-term loan of RMB100,000 as of December 31, 2021. The interest rate is 2.75%. The borrowing has a maturity of one year and is collateralized by RMB100,000 of time deposit. The interest expense incurred for the above mentioned loans for the year ended December 31, 2020 and 2021 amounted to RMB11,830 and RMB13,806, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2020 2021 RMB RMB Salaries and welfare payables 111,344 170,813 Payables to retailers on JDDJ (1) 168,484 143,268 Accrued marketing expenses for JDDJ 73,313 106,307 Advance for online marketing services 24,816 48,518 Deposits from retailers and outsourced agencies 44,751 39,423 Advance for delivery service (2) 29,604 23,894 Professional fee payable 15,108 23,520 Proceeds payable to employees in connection with their sale of ordinary shares 110,103 9,592 Tax payables 205,303 12,693 Others 32,165 42,378 Total 814,991 620,406 Notes: (1) Payables to retailers on JDDJ represent cash collected on behalf of retailers for goods sold through JDDJ. (2) Advance for delivery service represents the prepayments for on-demand delivery services. The amount is refundable if no service is provided. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION In February 2015, the Group adopted the 2015 Incentive Compensation Plan ("2015 Plan"), which permits the granting of share options, restricted share units and other equity incentives to employees, directors and consultants of the Group. The 2015 plan administrator is the Group’s board of directors. The board may also authorize one or more of the Group’s officers to grant awards under the plan. The Group has authorized 61,605,996 ordinary shares for issuance under the 2015 Plan. The options expire in ten years from the date of grant. In June 2020, the Group adopted the 2020 Incentive Compensation Plan ("2020 Plan"), which permits the granting of share options, restricted share units and other equity incentives to employees, directors and consultants of the Group. The 2020 plan administrator is the Group's board of directors. The board may also authorize one or more of the Group's officers to grant awards under the plan. The Group has initially authorized 45,765,386 ordinary shares, plus an annual increase on the first day of each year during the ten 11. SHARE-BASED COMPENSATION - continued Share option Under the 2015 Plan and 2020 Plan, options granted to employees vest upon satisfaction of a service condition, which is generally satisfied over four years. Additionally, the 2015 Plan includes a condition where employees can only exercise vested options upon the occurrence of the Company's ordinary shares becoming listed securities, which substantially creates a performance condition ("IPO Condition") that had not been met prior to the Company's IPO. Therefore, the stock compensation expenses related to those options were not recognized until June 5, 2020. The Group recognized RMB131,344 and RMB52,569 of stock-based compensation expenses for the year ended December 31, 2020 and 2021, respectively. The Group did not Under the 2015 Plan, options granted to non-employees are also subject to a four-year service period and the IPO condition. Therefore, the Group did not The Group adopted ASU 2018-07 on January 1, 2019 and the stock-based compensation expense for non-employee grants for which a measurement date had not been established was remeasured based on the estimated fair value of the Company's ordinary share of US$2.26 on January 1, 2019. In determining the fair value of the stock options, the binomial option pricing model was applied. The key assumptions used to determine the fair value of the options at the respective grant dates in 2019 and 2020 were as follows: As of December 31, 2019 2020 RMB RMB Expected volatility 37%~40 % 37%~41 % Risk-free interest rate (per annum) 2.4%~3.6 % 1.7%~2.3 % Exercise multiples 2.2 2.2 Expected dividend yield 0.00 % 0.00 % Fair value of underlying ordinary shares US$2.26~3.87 US$4.08~5.79 Fair value of share option US$1.59~3.14 US$3.32~5.03 The Group estimated expected volatility by reference to the historical price volatilities of ordinary shares of comparable companies over a period close to the contract term of the options. The Group estimated the risk - 11. SHARE-BASED COMPENSATION - continued Share option - continued The following table summarized the Group’s share option activities under the Option Plans: Weighted Weighted Average Weighted Average Remaining Average Aggregate Number Exercise Contract Life Grant Date Intrinsic of Options Price (years) Fair Value Value US$ US$ US$ Outstanding at January 1, 2021 36,579,248 0.37 5.63 1.13 318,660 Exercised (11,798,979) 0.28 0.63 Forfeited (1,121,620) 0.80 3.59 Outstanding at December 31, 2021 23,658,649 0.50 5.45 1.69 52,644 Expect to vest at December 31, 2021 5,091,956 0.80 7.96 3.42 39,106 Exercisable at December 31, 2021 18,566,693 0.39 4.51 1.03 13,538 As of December 31, 2021, there was RMB81,503 of total unrecognized compensation expense related to options, which is expected to be recognized over a weighted-average period of 1.82 years. Restricted share units In 2020, the Group granted in total 17,995,626 restricted share unites to employees and two executives of the Company's principal shareholders, subject to service vesting schedules of one year, four years or six years under the 2015 Plan and the 2020 Plan. The weighted average estimated fair value on the grant date of each restricted share unit was US$4.36 (RMB28.42). In 2021, the Group granted in total 9,253,000 restricted share units to employees and non-employees, subject to a four-year service vesting schedule under the 2020 Plan. The weighted average estimated fair value on the grant date of each restricted share unit was US$6.04 (RMB38.48). The following table summarized the Group's restricted share unit activities under the 2015 and 2020 Plan: Number of Restricted Share Weighted Average Units Grant Date Fair Value US$ Unvested at January 1, 2021 16,403,126 4.22 Granted 9,253,000 6.04 Vested (4,531,090) 4.00 Forfeited (687,452) 6.75 Unvested at December 31, 2021 20,437,584 4.98 Expected to vest at December 31, 2021 20,437,584 4.98 Restricted share units granted to employees and non-employees are measured based on the closing price of ordinary shares on the grant date and recognized as compensation cost on a straight-line basis over the requisite service period. Total share-based compensation expenses recognized for these restricted share units in 2019, 2020 and 2021 were RMB38,272, RMB185,138 and RMB146,996, respectively. As of December 31, 2021, there were RMB647,997 of unrecognized compensation expenses related to unvested restricted share units which is expected to be recognized over a weighted-average period of 3.38 years. 11. SHARE-BASED COMPENSATION – continued JD’s Share Incentive Plan (the "JD Employee Awards") On April 26, 2016, the Group consummated the acquisition of JDDJ business from JD. The acquisition involved the transfer of certain employees from JD to the Group. These employees were granted with unvested restricted share units by JD (the "JD Employee Awards") when they were employed by JD. The JD Employee Awards which are generally vested annually over six years continued in effect after the acquisition for the employees transferred to the Group, provided that these employees continue their employment with the Group or any subsidiaries of JD. The Group recognizes the entire cost of JD Employee Awards incurred by JD, the Group’s shareholder, as compensation cost with a corresponding amount as a capital contribution according to ASC 505-10-25-3. Prior to January 1, 2019, the Group re-measured the awards at a fair-value-based amount as of the end of each reporting period until performance was completed. On January 1, 2019, the Group adopted ASU 2018-07, under which the stock-based compensation for which a measurement date had not been established was re-measured based on the fair value of the JD’s ordinary share of US$20.93 on January 1, 2019. The share-based compensation amounts related to JD’s share were RMB12,896, RMB9,311 and RMB8,378 for the years ended December 31, 2019, 2020 and 2021, respectively. The total amount of unrecognized compensation expenses based on the fair value of unvested restricted share units as of December 31, 2021 was RMB3,924, and is expected to be recognized over a weighted-average period of 0.48 years. Number of Restricted Share Weighted Average Units Fair Value US$ Unvested at January 1, 2021 85,560 20.93 Vested (56,131) 20.93 Unvested at December 31, 2021 29,429 20.93 Expected to vest at December 31, 2021 29,429 20.93 |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2021 | |
ORDINARY SHARES. | |
ORDINARY SHARES | 12. ORDINARY SHARES Upon the completion of IPO in June 2020, the Group issued 89,491,548 ordinary shares at $4.00 per share, and received proceeds of RMB2,357,823 net of the underwriting discounts and commission and expenses related to IPO. Upon the completion of a follow-on public offering in December 2020, the Group issued 36,000,000 ordinary shares at $12.50 per share, and received proceeds of RMB2,816,190 net of the underwriting discounts and commission and expenses related to the offering. In June 2021, the Group’s Board of Directors authorized a share repurchase program (“2021 share repurchase program”) under which the Group may repurchase up to US$150,000 worth of its ADSs during the 12-month period. Under the 2021 share repurchase program, the Group repurchased 28,099,564 ordinary shares for US$150,000 (RMB968,409) on the open market, at a weighted average price of US$5.34 (RMB34.03) per share including commission cost, for the year ended December 31, 2021. These repurchased shares are subject to retirement. The repurchases of ordinary shares are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as reductions of ordinary shares and additional paid-in capital. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
LOSS PER SHARE | |
LOSS PER SHARE | 13. LOSS PER SHARE Loss per share was computed by dividing net loss available to ordinary shareholders by the weighted average number of ordinary shares outstanding for the years ended December 31, 2019, 2020 and 2021: Years ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net loss available to ordinary shareholders of the Company—basic and diluted (2,464,796) (2,080,825) (2,471,127) Denominator: Weighted average number of ordinary shares outstanding 362,644,898 667,844,843 950,697,557 Basic and diluted loss per share (6.80) (3.12) (2.60) As a result of the Group’s net loss for the three years ended December 31, 2019, 2020 and 2021, the following weighted average numbers of the Company’s preferred shares, share options, and restricted share units outstanding in the respective periods were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive. Years ended December 31, 2019 2020 2021 RMB RMB RMB Series A convertible redeemable preferred shares 77,000,000 — — Series B convertible redeemable preferred shares 37,748,300 — — Series C convertible redeemable preferred shares 44,286,448 — — Series D convertible redeemable preferred shares 64,001,162 — — Series E convertible redeemable preferred shares 93,580,586 — — Series F convertible redeemable preferred shares 116,857,842 — — Share options 37,951,132 42,253,493 18,640,216 Restricted share units 4,505,362 16,188,798 17,133,658 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2021 | |
TAXATION | |
TAXATION | 14. TAXATION Income Taxes Cayman Islands Under the current laws of the Cayman Islands, the Company incorporated in the Cayman Islands are not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Operations in Hong Kong have incurred net accumulated operating losses for income tax purpose and therefore no income tax provisions are recorded for the periods presented. Under the current Hong Kong Inland Revenue Ordinance, the Group's subsidiary domiciled in Hong Kong is subject to a two-tiered profits tax rate regime. The profits tax rate for the first HK dollar 2,000 of profits of corporations is 8.25% , while profits above that amount is subject to the tax rate of 16.5% . China Under the PRC Corporate Income Tax Law ("new CIT Law"), Foreign Investment Enterprises ("FIEs") and domestic companies are subject to corporate income tax at a uniform rate of 25%. Dada Glory and Shanghai JDDJ qualified as high and new technology enterprises ("HNTE") (effective till 2023) and are eligible to a reduced income tax rate of 15%for the years ended December 31, 2019, 2020 and 2021. 14. TAXATION - continued Income Taxes - continued Withholding tax on undistributed dividends The new CIT Law also provides that an enterprise established under the laws of a foreign country or region but whose "de facto management body" is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The implementing rules of the CIT Law merely define the location of the "de facto management body" as "the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, etc., of a non-PRC company is located". Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. The new CIT law also imposes a withholding income tax of 10% on dividends distributed by an FIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. The Cayman Islands, where the Company is incorporated, does not have such tax treaty with China. According to the arrangement between the Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an FIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the FIE).The Company did not record any dividend withholding tax, as it has no retained earnings for any of the periods presented. Loss by tax jurisdictions: As of December 31, 2019 2020 2021 RMB RMB RMB Loss from PRC operations 1,517,437 1,215,179 2,225,317 Loss from non-PRC operations 161,376 495,140 257,368 Total losses before tax 1,678,813 1,710,319 2,482,685 The current and deferred portion of income tax expenses included in the consolidated statements of operations and comprehensive loss are as follows: As of December 31, 2019 2020 2021 RMB RMB RMB Current tax expenses — — — Deferred tax benefits (9,032) (5,143) (11,558) Income tax benefits (9,032) (5,143) (11,558) 14. TAXATION - continued Income Taxes - continued Reconciliation of the difference between PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2019, 2020 and 2021 are as follows: Years ended December 31, 2019 2020 2021 RMB RMB RMB Statutory tax rate 25.0 % 25.0 % 25.0 % Effect of different tax rate of subsidiary operation in other jurisdiction (2.4) % (7.3) % (2.6) % Changes in valuation allowance (26.0) % (20.7) % (25.6) % Other expenses not deductible for tax purposes 0.5 % (0.2) % (0.1) % Expired tax loss 0 % (0.2) % (0.6) % True up 0 % (0.2) % (0.1) % Super deduction of research and development expense 3.4 % 3.9 % 4.2 % Effect of tax rate change of deferred tax liabilities 0 % 0 % 0.3 % Effective tax rate 0.5 % 0.3 % 0.5 % Deferred tax assets and deferred tax liabilities As of December 31, 2020 2021 RMB RMB Deferred tax assets - Net operating loss carry forwards 2,156,396 2,783,606 - Inventories valuation allowance 149 37 - Impairment provision for other non-current assets 1,039 — - Accrued expenses 33,538 41,039 - Advertising expenses 4,748 6,235 Less: Valuation allowance (2,195,870) (2,830,917) Net deferred tax assets — — Deferred tax liabilities - Identifiable intangible assets from business combination 38,558 27,000 Total deferred tax liabilities 38,558 27,000 As of December 31, 2019, 2020 and 2021, the Group had net operating loss carry forwards of approximately RMB7,222,966, RMB8,625,584 and RMB11,134,427, respectively, which arose from the subsidiaries, VIE and VIE’s subsidiaries established in the PRC. The loss carry forwards will expire during the period from 2022 to 2031. The Group believes that it is more likely than not that the net accumulated operating losses and other deferred tax assets will not be utilized in the future based on an evaluation of a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. Therefore, the Group provided full valuation allowances for the deferred tax assets as of December 31, 2020 and 2021, respectively. 14. TAXATION - continued Movement of valuation allowance Years ended December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of the year 1,404,254 1,841,225 2,195,870 Addition 436,971 354,645 635,047 Balance at end of the year 1,841,225 2,195,870 2,830,917 According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB100 is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The Group’s PRC subsidiaries are therefore subject to examination by the PRC tax authorities from 2016 through 2021 on non-transfer pricing matters and transfer pricing matters. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2021 | |
CONCENTRATION OF CREDIT RISK | |
CONCENTRATION OF CREDIT RISK | 15. CONCENTRATION OF CREDIT RISK Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, amount due from related parties and prepayments and long-term time deposits. The Group places its cash and cash equivalents , restricted cash,short-term investments and long-term time deposits with financial institutions with high-credit ratings and quality. Accounts receivable mainly consist of amounts receivable from merchants and brand owners. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs in its customers and its ongoing monitoring process of outstanding balances. With respect to prepayments, the Group performs on-going credit evaluations of the financial condition of the suppliers. The Group has not noted any significant credit risk. Concentration of customers The following customers accounted for 10% or more of revenue for the years ended December 31, 2019, 2020 and 2021: Years ended December 31, 2019 2020 2021 RMB RMB RMB Customer A 1,564,436 2,214,262 951,328 Customer B 403,287 794,685 1,387,685 The following customers accounted for 10% or more of accounts receivable as of December 31, 2020 and 2021, respectively. As of December 31, 2020 2021 RMB RMB Customer C * 80,101 Customer D * 45,689 Customer E 107,153 * Customer F 48,172 * Customer G 45,525 * * Less than 10% 15. CONCENTRATION OF CREDIT RISK - continued Foreign currency risk RMB is not a freely convertible currency. The State Administration of Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents, restricted cash and short-term investments of the Group included aggregated amounts of RMB966,897 and RMB1,106,546 denominated in RMB as of December 31, 2020 and 2021, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS The table below sets forth the major related parties and their relationships with the Group as of December 31, 2021: Name of related parties Relationship with the Group JD, its subsidiaries and affiliates ("JD Group") Shareholder of the Company Walmart, its subsidiaries and affiliates ("Walmart Group") Shareholder of the Company (a) The Group entered into the following transactions with the major related parties: Years ended December 31, 2019 2020 2021 RMB RMB RMB Revenues Services to JD Group (1) 1,564,436 2,214,262 951,328 Services to Walmart Group (2) 403,287 794,685 1,387,685 Operating expenses Operational support services from JD Group 25,376 79,038 265,635 Purchases from JD Group 47,179 46,407 44,889 (1) The services revenues from JD Group primarily consist of revenues from delivery service, platform technical service and promotion service. Before April 2021, the Group fulfilled the delivery needs of JD Group as the principal. The Group was primarily responsible for the delivery of merchandise and guaranteed identifying and directing riders to complete the deliveries requested by JD Group. In April 2021, the Group signed a new service agreement with JD Group. Under the new contractual terms, the Group only provides platform technical service to JD Group. It acts as an agent in fulfilling the delivery needs of JD Group and is not primarily responsible for the delivery of merchandise. The service agreement has an initial term of one year and remains valid till other replacement agreement is signed by both parties. JD Group also provides certain operational supporting services to the Group, such as referral traffic under Omni-channel collaboration with JD Group and cloud server service.The service fee is confirmed with the Group on a monthly basis. The service agreements have terms ranging from one In addition, the Group entered into the purchase agreement with JD Group in August 2016 to purchase goods from JD Group for sale on Dada Now. The purchase agreement has an initial term of one year, and remains valid till other replacement agreement is signed by both parties. 16. RELATED PARTY TRANSACTIONS – continued (a) The Group entered into the following transactions with the major related parties: - continued (2) Walmart Group became a related party in August 2018, therefore, only transactions occurred after August 2018 were presented as related party transactions. The services revenues from Walmart Group primarily consist of on-demand retail platform service revenues and fulfillment service revenues under the business cooperation agreement and service agreement with Walmart Group. The on-demand retail platform service revenues primarily consist of commission fees based on a pre-determined percentage charged to Walmart Group for participating in the Group’s online marketplace. The Group also fulfills the delivery needs of Walmart Group on JDDJ where the Group acts as a principal. Revenues are recognized on a gross basis at a pre-determined amount for each completed delivery. The Group entered into the business cooperation agreement with Walmart Group in June 2016, which was amended and restated in August 2018. The amended and restated business cooperation agreement has a term of six years . The service agreement has an initial term of one year , and remains valid till the termination of the business cooperation agreement. (b) The Group had the following balances with the major related parties: As of December 31, 2020 2021 RMB RMB Current assets: Amount due from JD Group 562,194 424,395 Amount due from Walmart Group 84,147 416,272 Total 646,341 840,667 Current liabilities: Amount due to JD Group (1) 26,545 43,042 Amount due to Walmart Group (2) 26,373 28,718 Total 52,918 71,760 (1) Amount due to JD Group includes cost for referral traffic under omni-channel collaboration with JD Group and cloud server services fee. (2) Amount due to Walmart includes cash collected from consumers on behalf of Walmart when the Group performs on-demand retail platform services. |
EMPLOYEE BENEFIT
EMPLOYEE BENEFIT | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE BENEFIT | |
EMPLOYEE BENEFIT | 17. EMPLOYEE BENEFIT As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan based on certain percentages of employees’ salaries. The total expenses the Group incurred for the plan were RMB103,600, RMB77,708 and RMB177,521 for the years ended December 31, 2019, 2020 and 2021, respectively, which are recorded in expenses based on the function of employees. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Contingencies The Group is subject to a number of legal or administrative proceedings that generally arise in the ordinary course of its business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material adverse effect on the financial statements. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 19. RESTRICTED NET ASSETS Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises and local enterprises, the Group’s entities in the PRC must make appropriation from after-tax profit to non-distributable reserve funds as determined by the Board of Directors of the subsidiaries. PRC laws and regulations permit payments of dividends by the Company’s subsidiaries and VIE incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries and VIE incorporated in the PRC are required to annually appropriate 10% of their net income to the statutory reserve prior to payment of any dividends, unless such reserve has reached 50% of their respective registered capital. In addition, registered share capital and capital reserve accounts are also restricted from withdrawal in the PRC. As a result of these PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with the PRC accounting standards and regulations, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital, APIC and the statutory reserves of the Company’s PRC subsidiaries, VIE and VIE’s subsidiaries. As of December 31, 2020 and 2021, the total of restricted net assets were RMB8,612,691 and RMB9,409,485, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS On February 28, 2022, after obtaining all the requisite regulatory approvals, the Company and JD.com entered into an amendment to share subscription agreement which previously entered on March 22, 2021. Upon the closing of this deal, the Company issued 109,215,017 ordinary shares to JD.com in exchange for US$546 million in cash and certain strategic resources from JD.com. JD.com holds, taking into account its existing shareholding, approximately 52% of the Company’s issued and outstanding shares and has consolidated the financial results of the Group into its consolidated financial statements. On March 11, 2022, the board of directors of the Company has authorized a share repurchase whereby the Company is authorized to repurchase its own ordinary shares in the form of American depository shares with an aggregate value of up to US$70 million during the next 12-month period. |
ADDITIONAL FINANCIAL INFORMATIO
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2021 | |
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY | |
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY | CONDENSED BALANCE SHEETS (Amounts in thousands, except for share and per share data) As of December 31, 2020 2021 RMB RMB US$ (Note 2) ASSETS Current assets: Cash and cash equivalents 5,029,806 112,374 17,634 Short-term investments — 528,909 82,997 Prepayments and other current assets 15,320 3,163 496 Total current assets 5,045,126 644,446 101,127 Investment in and amount due from subsidiaries, VIE and VIE's subsidiaries 1,657,347 2,959,723 464,445 Intangible assets, net 327,007 186,037 29,193 Total non-current assets 1,984,354 3,145,760 493,638 TOTAL ASSETS 7,029,480 3,790,206 594,765 LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Accrued expenses and other current liabilities 1,525 1,577 246 TOTAL LIABILITIES 1,525 1,577 246 SHAREHOLDERS' EQUITY Ordinary shares (US$0.0001 par value, 2,000,000,000, and 2,000,000,000 shares authorized, 941,450,185 and 955,876,116 shares issued, and 941,450,185 and 927,776,552 shares outstanding as of December 31, 2020 and 2021, respectively) 639 633 99 Additional paid-in capital 16,442,721 15,714,015 2,465,872 Accumulated deficit (9,345,102) (11,816,229) (1,854,224) Accumulated other comprehensive loss (70,303) (109,790) (17,228) TOTAL SHAREHOLDERS' EQUITY 7,027,955 3,788,629 594,519 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 7,029,480 3,790,206 594,765 CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Amounts in thousands, except for share and per share data) Years ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Note 2) Expenses and income/(loss) Operating expenses (203,191) (513,407) (358,458) (56,249) Interest income 25,327 18,955 29,633 4,650 Foreign exchange loss — — (311) (49) Other operating income — 101 13,334 2,092 Equity in losses of subsidiaries, VIE and VIE's subsidiaries (1,491,917) (1,210,825) (2,155,325) (338,218) Net loss and net loss attributable to the Company (1,669,781) (1,705,176) (2,471,127) (387,774) Accretion of convertible redeemable preferred shares (795,015) (375,649) — — Net loss available to ordinary shareholders (2,464,796) (2,080,825) (2,471,127) (387,774) Net Loss (1,669,781) (1,705,176) (2,471,127) (387,774) Other comprehensive loss Foreign currency translation adjustments (446) (209,963) (39,487) (6,196) Total comprehensive loss (1,670,227) (1,915,139) (2,510,614) (393,970) CONDENSED STATEMENTS OF CASHFLOW (Amounts in thousands, except for share and per share data) Years ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Note 2) Net cash provided by operating activities 10,460 1,571 42,829 6,722 Net cash used in investing activities (1,586,628) (20,652) (4,001,123) (627,864) Net cash provided by/(used in) financing activities — 5,181,447 (936,655) (146,982) Effect of foreign exchange rate changes on cash and cash equivalents (10,522) (173,133) (22,483) (3,528) Net increase/(decrease) in cash and cash equivalents (1,586,690) 4,989,233 (4,917,432) (771,652) Cash and cash equivalents, beginning of the year 1,627,263 40,573 5,029,806 789,286 Cash and cash equivalents, end of the year 40,573 5,029,806 112,374 17,634 NOTES TO SCHEDULE I (1) Schedule 1 has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company does not include condensed financial information as to the changes in equity as such financial information is the same as the consolidated statements of changes in shareholders’ equity. (2) The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries and VIE. For the parent company, the Company records its investments in subsidiaries and VIE under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as "Investment in subsidiaries, VIE and VIE’s subsidiaries" and the subsidiaries and VIE’s profit or loss as "Equity in losses of subsidiaries, VIE and VIE’s subsidiaries" on the Condensed Statements of Operations and Comprehensive Income. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries and VIE in investment in and amount due from subsidiaries, VIE and VIE’s subsidiaries even though the parent company is not obligated to provide continuing support or fund losses. (3) For the years ended December 31, 2019, 2020 and 2021, there were no material contingencies, significant provisions of long-term obligations, guarantees of the Company. (4) For the years ended December 31, 2019, 2020, and 2021, transfer of due from subsidiaries, VIE and VIE's subsidiaries to investment in subsidiaries, VIE and VIE's subsidiaries amounted to RMB 438,914 , nil and nil , respectively. |
PRINCIPAL ACCOUNTING POLICIES (
PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation | 2.1 Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for the years presented. |
Basis of consolidation | 2.2 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries in which it has a controlling financial interest. The results of the subsidiaries, VIE and VIE’s subsidiaries are consolidated from the date on which the Company obtained control and continue to be consolidated until the date that such control ceases. All intercompany balances and transactions between the Group, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated in consolidation. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements In order to comply with the PRC laws and regulations which prohibit or restrict foreign control of companies involved in provision of internet content and other restricted businesses, the Group operates its websites and other restricted businesses in the PRC through Shanghai Qusheng, whose equity interests are held by certain management members and shareholders of the Group ("Nominee Shareholders"), and its wholly-owned subsidiary, JDDJ Youheng. On November 14, 2014, Dada Glory entered into a series of contractual agreements with Shanghai Qusheng and its shareholders, which were amended subsequently primarily for change of nominee shareholders. The following is a summary of the agreements which allow Dada Glory to exercise effective control over Shanghai Qusheng: Share Pledge Agreements Pursuant to the share pledge agreements, each of the shareholders of the VIE has pledged the security interest in their respective equity interests in the VIE, representing 100% equity interests in the VIE in aggregate to Dada Glory, to guarantee performance by the shareholders of their obligations under the powers of attorney, the exclusive business cooperation agreement and the exclusive option agreement, as well as the performance by the VIE of its obligations under the exclusive business cooperation agreement and the exclusive option agreement. In the event of a breach by the VIE or any of its shareholders of contractual obligations under these contractual arrangements, Dada Glory, as pledgee, will have the right to take possession of and dispose of the pledged equity interests in the VIE and will have priority in receiving the proceeds from such disposal. The shareholders of the VIE also covenant that, without the prior written consent of Dada Glory, they shall not transfer or agree to other’s transfer of the pledged equity interests, create or allow any new pledge or any other encumbrance on the pledged equity interests. The equity interest pledge agreement will remain effective until the contractual obligations are fully fulfilled and terminated. During the equity pledge period, Dada Glory is entitled to all dividends and other distributions generated by the VIE. Exclusive Business Cooperation Agreement Pursuant to the exclusive business cooperation agreement between Dada Glory and the VIE, Dada Glory has the exclusive right to provide the VIE with complete business support and technical and consulting services, including but not limited to technical services, network support, business consultations, intellectual property licenses, equipment or leasing, marketing consultancy, system integration, product research and development, and system maintenance. Without Dada Glory’s prior written consent, the VIE may not accept any consultations and/or services regarding the matters contemplated by this agreement provided by any third party during the term of the agreement. The VIE agrees to pay Dada Glory service fees at an amount equals to 100% of the net income generated by the VIE, which should be paid on a monthly basis. Dada Glory has the exclusive ownership of all he intellectual property rights created as a result of the performance of the exclusive business cooperation agreement. To guarantee the VIE’s performance of its obligations thereunder, the shareholders of the VIE have pledged all of their equity interests in the VIE to Dada Glory pursuant to the share pledge agreement. The exclusive business cooperation agreement has an initial term of 10 years and shall be extended if confirmed in writing by Dada Glory prior to the expiration. The extended term shall be determined by Dada Glory, and the VIE shall accept such extended term unconditionally. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued Exclusive Option Agreements Pursuant to the exclusive option agreements, each of the shareholders of the VIE has irrevocably granted Dada Glory, or any person designated by Dada Glory, an exclusive option to purchase all or part of its equity interests in the VIE. Dada Glory may exercise such options at a price equal to the lowest price as permitted by applicable PRC laws at the time of transfer of equity. The VIE and the shareholders of the VIE covenant that, without Dada Glory’s prior written consent, they will not, among other things, (i) supplement, change or amend the VIE’s articles of association and bylaws, (ii) increase or decrease the VIE’s registered capital or change its structure of registered capital, (iii) create any pledge or encumbrance on their equity interests in the VIE, other than those created under the equity interest pledge agreement, (iv) sell, transfer, mortgage, or dispose of their legal or beneficial interests in and any assets of the VIE and any legal or beneficial interests, (v) enter into any material contract by the VIE, except in the ordinary course of business, or (vi) merge or consolidate the VIE with any other entity. The exclusive option agreement has an initial term of ten years, and at the end of the initial term shall be renewed for a further term as specified by Dada Glory or terminated by Dada Glory in its sole discretion. Powers of Attorney Pursuant to the power of attorney, each of the shareholders of the VIE has executed a power of attorney to irrevocably authorize Dada Glory, or any person designated by Dada Glory, to act as its attorney-in-fact to exercise all of its rights as a shareholder of the VIE, including, but not limited to, the right to propose, convene and attend shareholders’ meetings, (ii) vote on any resolution on behalf of the shareholders that require the shareholders to vote under PRC law and the VIE’s articles of association, such as the sale, transfer, pledge and disposal of all or part of a shareholder’s equity interest in the VIE, and designate and appoint the VIE’s legal representative, director, supervisor, chief executive officer and other senior management members on behalf of the shareholders. The powers of attorney will remain effective until such shareholder ceases to be a shareholder of the VIE or otherwise instructed by Dada Glory. U.S. GAAP provides guidance on the identification of VIE and financial reporting for entities over which control is achieved through means other than voting interests. The Group evaluates each of its interests in an entity to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affect the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. The irrevocable powers of attorney described above have conveyed all shareholder rights held by the VIE’s shareholders to Dada Glory, including the right to appoint board members who nominate the general managers of the VIE to conduct day-to-day management of the VIE’s businesses, and to approve significant transactions of the VIE. The exclusive option agreements provide Dada Glory with a substantive kick-out right of the VIE shareholders through an exclusive option to purchase all or any part of the shareholders’ equity interest in the VIE at the lowest price permitted under the PRC laws then in effect. In addition, through the exclusive business cooperation agreement, Dada Glory has established the right to receive benefits from the VIE that could potentially be significant to the VIE, and through the share pledge agreement, Dada Glory has, in substance, an obligation to absorb losses of the VIE that could potentially be significant to the VIE. As these contractual arrangements allow the Group to effectively control the VIE and to derive substantially all of the economic benefits from it, the Group has consolidated the VIE. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued Risks in relation to the VIE structure The Company believes that the contractual arrangements amongst Dada Glory, Shanghai Qusheng and their respective shareholders are in compliance with PRC law and are legally enforceable. The shareholders of Shanghai Qusheng are also shareholders of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, Shanghai Qusheng and their shareholders may fail to take certain actions required for the Company’s business or to follow the Company’s instructions despite their contractual obligations to do so. Furthermore, if Shanghai Qusheng or their shareholders do not act in the best interests of the Company under the contractual arrangements and any dispute relating to these contractual arrangements remains unresolved, the Company will have to enforce its rights under these contractual arrangements through the operations of PRC law and courts and therefore will be subject to uncertainties in the PRC legal system. All of these contractual arrangements are governed by PRC law and provided for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements, which may make it difficult to exert effective control over Shanghai Qusheng, and its ability to conduct the Company’s business may be adversely affected. The following amounts and balances of the consolidated VIE were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 512 3,961 Accounts receivable, net 367 760 Amount due from related parties 1,956 476 Prepayments and other current assets 6,851 3,287 Property and equipment, net 461 245 Intangible assets, net 12,774 10,938 Operating lease right-of-use assets 2,255 791 Other non-current assets — 93 Total assets 25,176 20,551 Payable to riders and drivers 1,313 404 Amount due to related parties 32 32 Accrued expenses and other current liabilities 13,885 12,542 Operating lease liabilities 830 192 Non-current operating lease liabilities 1,053 412 Total liabilities 17,113 13,582 Years ended December 31, 2019 2020 2021 RMB RMB RMB Net Revenues 3,183 3,293 13,104 Net loss (38,674) (49,741) (58,641) Net cash provided by operating activities 14,612 535 4,308 Net cash used in investing activities (14,604) (59) (859) 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued The VIE contributed approximately 0.1%, 0.1% and 0.2% of the Group’s consolidated net revenues for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2020 and 2021, the VIE accounted for approximately 0.3% and 0.4% of the consolidated total assets, and approximately 0.7% and 0.9% of the consolidated total liabilities, respectively. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE. However, if the VIE was ever to need financial support, the Group or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE or entrustment loans to the VIE. The Group believes that there are no assets held in the consolidated VIE that can be used only to settle obligations of the VIE, except for paid-in capital, additional paid-in capital ("APIC") and the PRC statutory reserves. As the consolidated VIE is incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Group for any of the liabilities of the consolidated VIE. Relevant PRC laws and regulations restrict the VIE from transferring a portion of their net assets, equivalent to the balance of their paid-in capital, APIC and PRC statutory reserve, to the Group in the form of loans and advances or cash dividends. |
Use of estimates | 2.3 Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. |
Functional currency and foreign currency translation | 2.4 Functional currency and foreign currency translation The Group uses Renminbi ("RMB") as its reporting currency. The functional currency of the Company is the United States dollar ("US$" or "USD"). The functional currency of the Company’s subsidiaries, VIE and VIE’s subsidiaries is RMB or USD as determined based on the economic facts and circumstances. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the comprehensive loss. Assets and liabilities of the Company and its subsidiaries with functional currency other than RMB are translated into RMB at fiscal year-end exchange rates. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Income and expense items are translated at average exchange rates during the fiscal year. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as accumulated other comprehensive loss. |
Convenience translation | 2.5 Convenience translation The Group’s business is primarily conducted in China and almost all of its revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the then current exchange rates, for the convenience of the readers. Translations of balances in the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.3726 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2021, or at any other rate. |
Cash and cash equivalents | 2.6 Cash and cash equivalents Cash and cash equivalents primarily consist of cash on hand and cash in bank which is highly liquid and unrestricted as to withdrawal and use. |
Restricted cash | 2.7 Restricted cash The Group’s restricted cash mainly represents cash received from consumers and reserved in bank supervised accounts for payments to retailers on the on-demand retail platform. |
Short-term investments | 2.8 Short-term investments Short-term investments include (i) wealth management products with variable interest rates that the Group expects to receive all the principles and will mature within one year; (ii) time deposits with original maturities longer than three months but less than one year. The Group classifies its investments in wealth management products as held-to-maturity securities, as the Group has the positive intent and ability to hold those securities to maturity. All wealth management products' maturity dates are within one year. The gains recognized from wealth management products recorded in interest income in consolidated statements of operations and comprehensive loss are RMB 6,928 , RMB 7,855 , and RMB 14,524 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Accounts receivable, net | 2.9 Accounts receivable, net Accounts receivable mainly consists of amount due from the Group's customers, which is recorded net of allowance for credit losses.On January 1, 2021, the Group adopted Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326") using the modified retrospective transition method. ASC 326 replaces the incurred loss impairment model with a forward-looking current expected credit loss ("CECL") methodology, which results in more timely recognition of credit losses. The Group has developed a CECL model based on historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, and other factors that may affect its ability to collect from customers. The cumulative effect from the adoption as of January 1, 2021 was immaterial to the consolidated financial statements. |
Inventories, net | 2.10 Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost or market value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is determined based upon factors such as historical and forecasted consumer demand, and promotional environment. |
Property and equipment, net | 2.11 Property and equipment, net Property and equipment is stated at cost less accumulated depreciation and impairment. Property and equipment is depreciated at rates sufficient to write off its costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Category Estimated useful lives Computer equipment 3 years Office facilities 3-5 years Vehicles 8 years Software 3-5 years Leasehold improvement Over the shorter of the expected useful life or the lease term Repairs and maintenance costs are charged to operating expenses as incurred, whereas the costs of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the other operating income or expenses of consolidated statements of operations and comprehensive loss. |
Intangible assets, net | 2.12 Intangible assets, net Intangible assets purchased are recognized and measured at cost upon acquisition. The Group's intangible assets primarily comprise of business cooperation agreement ("BCA"), non-compete commitment ("NCC"), technology, trademark and domain name arising from the Group's acquisition of JDDJ business from JD.com, Inc. ("JD") in 2016, which are recognized and measured at fair value based on a valuation upon acquisition. Following the initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The identifiable intangible assets acquired are amortized on a straight-line basis over the respective useful lives as follows: Category Amortization Years BCA 7 NCC 7 Technology 3.7 Trademark and Domain Name 9-9.7 |
Goodwill | 2.13 Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisition of JDDJ business from JD occurred in 2016 and there is no change to the carrying amount of goodwill as of December 31, 2020 and 2021. Goodwill is not amortized but is reviewed at least annually for impairment or earlier, if any indication of impairment exists. In evaluation of goodwill impairment, the Group performs a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the Group compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. The Group has determined it has only one reporting unit and applied quantitative assessment in its annual goodwill impairment analysis as of December 31 of each year. No goodwill impairment was recorded for 2019, 2020 and 2021 as the fair value of the reporting unit significantly exceeded its carrying value at each assessment date. 2. PRINCIPAL ACCOUNTING POLICIES – continued 2.13 Goodwill – continued Application of a goodwill impairment test in quantitative analysis requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. |
Fair value measurement | 2.14 Fair value measurement Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it transacts and considers assumptions that market participants use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. |
Revenue recognition | 2.15 Revenue recognition The Group derives its revenues principally from merchants’, individual senders’ and retailers’ use of the Group’s core platforms in connection with on-demand retail platform services and on-demand delivery services. Revenue is stated net of value added tax, discounts and return allowances. Services The Group arranges for on-demand delivery services to be provided through Dada Now platform where it assists the customer, a merchant or an individual sender, in finding a rider to complete a delivery requested by the customer. The Group concludes that it acts as an agent in these transactions as it is not responsible for fulfilling the promise to provide the delivery services, nor does the Group have the ability to control the related services. The Group does not have the ability to control the services provided by riders due to the following: (i) the Group does not pre-purchase or otherwise obtain control of the riders’ services prior to their transfer to the customers; (ii) the Group does not guarantee an order could be taken by a rider; (iii) the Group cannot direct the riders to accept, decline or disregard a transaction request and (iv) the Group’s platform services do not include the delivery services provided to the customers by the riders. The service fee earned by the Group is the difference between the amount paid by the customer based on an upfront quoted fare and the amount earned by the rider based on expected delivery time, distance and other factors, which are both fixed at the time a transaction is entered into with a customer. The Group may record a loss from a transaction when an upfront quoted fare offered to the customer is less than the amount the Group is committed to paying to the rider. The revenue is recognized on a net basis at the point of delivery of merchandise. The loss on this type of transactions is recorded in operations and support costs in the consolidated statements of operations and comprehensive loss, as it is not related to any other current, previous or future transactions with the customer and in substance, is an expense paid to the rider. The losses included in operations and support costs were RMB96,131, RMB76,989 and RMB95,281 for the years ended December 31, 2019, 2020 and 2021, respectively. The Group provides on-demand retail platform services on JDDJ platform. The service revenues primarily consist of commission fees charged to retailers for participating in the Group’s online marketplace, where the Group acts as an agent and its performance obligation is to facilitate the retailers’ online sales of their goods and services through JDDJ. The Group is not primarily obligated to the consumers, does not take inventory risk, and does not have latitude over pricing of the merchandise. Upon successful sales, the Group charges the retailer a fixed rate commission fee based on the sales amount. Commission fee revenues are recognized on a net basis at the point of delivery of merchandise. In addition, the Group fulfills the delivery needs of retailers on JDDJ and other business customers on Dada Now by utilizing the Group’s network of registered riders on Dada Now. Under this type of services, the Group enters into agreements with retailers and other business customers, which enforce the Group’s acceptance of all the related delivery requests at the prices stipulated in the agreements. The Group has determined that it acts as the principal in these transactions as the Group is primarily responsible for the delivery of merchandise and has the ability to control the related services. The Group has the ability to control the services provided by riders as it is responsible for and guarantees identifying and directing riders that meet the quality criteria stipulated in the agreements to complete the deliveries requested by retailers or other business customers. Additionally, the Group has ultimate control over the amounts charged to the customers. Although in this type of services, the riders still have the ability to accept, decline or disregard a delivery assignment, it is the Group’s responsibility to find a replacement and complete the delivery timely. Revenues resulting from these services are recognized on a gross basis at a fixed rate or a pre-determined amount for each completed delivery, with the amounts paid to the riders recorded in operations and support costs. From September 2020, the Group started to engage truckers to provide freight services to logistics companies or merchants on Dada Now. The Group has determined that it acts as the principal in these freight transactions as it has the ability to control the freight services provided by truckers and primarily responsible for the freight services. The related revenue is included in service revenue under Dada Now as presented in the following table of disaggregation of revenues. The Group also provides online marketing services to brand owners and other business customers on JDDJ platform. Revenue is recognized when service is rendered. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.15 Revenue recognition – continued Other services provided by the Group comprise packaging services provided to retailers on JDDJ, and front-end warehouses services. Revenue is recognized when service is rendered. Goods Sales The Group operates its own e-commerce business and sells delivery equipment and other merchandise on Dada Now. The Group also sells merchandise through unmanned retail shelves. Revenue is recognized on a gross basis as the Group is acting as a principal in these transactions, is responsible for fulfilling the promise to provide the specified merchandise and also has pricing discretion. The Group recognizes revenues net of discounts and return allowances when the goods are delivered to the customers. Incentive programs Customer incentives The Group offers various incentive programs to merchants, individual senders and business customers in the form of coupons or volume-based discounts that are recorded as reduction of revenue as the Group does not receive a distinct good or service in consideration. Rider incentives The Group offers various incentive programs to riders, primarily in the form of volume-based incentives. The riders are not the Group's customers as they do not pay for their use of the Group's platform in any form. Therefore, for transactions where the Group acts as an agent and recognizes revenue on a net basis, the related rider incentives are recorded as a reduction of revenue. The incentive amount in excess of the related revenue is included in operations and support costs. For transactions where the Group acts as a principal and recognizes revenue on a gross basis, the related rider incentives are included in operations and support costs. For the years ended December 31, 2019, 2020 and 2021, incentives to riders recorded in operations and support costs were RMB192,243, RMB143,916 and RMB88,494, respectively, including incentives attributable to transactions where the Group acts as the principal of RMB158,763, RMB114,229 and RMB64,261, respectively. Consumer incentives The consumer incentives are offered to promote the Group's platform or brand owners' products in the form of promotion coupon on JDDJ, which are valid only during a limited period of time. These incentives are provided at the Group's discretion and are not contractually required by the retailers or brand owners. These incentives also do not reduce the overall pricing of the services provided by the Group. As the Group has no performance obligation to consumers, who are not the Group's customers,consumer incentives offered to promote the Group's platform are recognized as selling and marketing expenses, and consumer incentives offered on brand owners' products are recognized as operation and support costs. For the years ended December 31, 2019, 2020 and 2021, consumer incentives recorded as selling and marketing expenses and operation and support costs were RMB937,713 and nil, RMB1,166,032 and RMB321,178, and RMB2,223,109 and RMB715,883, respectively. All the incentives granted can be categorized into (i) incentives granted concurrent with a purchase transaction and (ii) incentives granted not concurrent with a purchase transaction. When the incentive is granted concurrent with a purchase transaction, expenses or reduction of revenue are accrued, in the most likely amount to be earned, as the related transactions are recorded. Since such incentives are generally earned over a very short period of time, there is limited uncertainty when estimating the expenses to be accrued or variable consideration to be recorded as a reduction of revenue. When the incentive (i.e. a coupon) is granted not concurrent with a purchase transaction, expenses or reduction of revenue are recognized upon the redemption of such incentive. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.15 Revenue recognition - continued Disaggregation of revenues For the years ended December 31, 2019, 2020 and 2021, all of the Group's revenues were generated in the PRC. The disaggregated revenues by revenue streams were as follows: Years ended December 31, 2019 2020 2021 RMB RMB RMB Dada Now: (1) Services 1,954,834 3,377,653 2,753,458 Sales of goods 41,951 56,925 67,254 Subtotal 1,996,785 3,434,578 2,820,712 JDDJ: (2) Services 1,102,913 2,305,411 4,045,550 Total 3,099,698 5,739,989 6,866,262 Notes: (1) Includes net revenues from on-demand delivery services and freight services. Revenue from on-demand delivery services for which the Group acts as a principal was RMB 216,242 , RMB 763,699 and RMB 1,681,121 for the years ended December 31, 2019, 2020 and 2021, respectively. (2) Includes net revenues from (i) commission fee, and advertising and marketing services of RMB 460,006 , RMB 1,211,549 and RMB 2,350,582 for the years ended December 31, 2019, 2020 and 2021, respectively; and (ii) fulfillment services and others of RMB 642,907 , RMB 1,093,862 and RMB 1,694,968 for the years ended December 31, 2019, 2020 and 2021, respectively. Contract balances The remaining unsatisfied performance obligation as of December 31, 2019, 2020 and 2021 was immaterial. Timing of revenue recognition may differ from the timing of invoicing customers. Accounts receivable represents amounts invoiced and revenues recognized prior to invoicing when the Group has satisfied its performance obligation and has the unconditional right to payment. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.15 Revenue recognition - continued Contract balances continued The Group receives advance payments from customers pursuant to the agreements with certain customers before the services or products are provided, which is recorded as advance for online marketing services or goods sale included in the accrued expenses and other current liabilities on the consolidated balance sheets. The opening and closing balances of the Group’s advances from customers are as follows: Advances from Customers RMB Opening Balance as of January 1, 2019 3,392 Increase, net 11,965 Ending Balance as of December 31, 2019 15,357 Increase, net 10,894 Ending Balance as of December 31, 2020 26,251 Increase, net 23,264 Ending Balance as of December 31, 2021 49,515 The opening balances of RMB 3,392 , RMB 15,357 and RMB 26,251 were recognized as revenue in the years ended December 31, 2019, 2020 and 2021, respectively. Practical expedients and exemptions The Group elects not to disclose the value of unsatisfied performance obligations one year |
Operations and support | 2.16 Operations and support Operations and support costs primarily consist of (i) riders' and drivers' remuneration and incentives to fulfil the Group's delivery orders and picking orders, (ii) expenses incurred in providing customer and rider care services or the service fee charged by external customer service providers, (iii) expenses charged by outsourced delivery agencies, (iv) expenses incurred in providing online marketing services, (v) transaction fees charged by third-party payment platform, and (vi) packaging cost as well as other operations and support costs directly attributed to the Group's principal operations. |
Selling and marketing | 2.17 Selling and marketing Selling and marketing expenses primarily consist of incentive payments to consumers, advertising and marketing expenses, payroll and related expenses for employees involved in selling and marketing functions, as well as the expenses incurred for facilities and equipment, such as depreciation expenses, rental and others. The advertising and marketing expenses amounted to RMB133,669, RMB247,858 and RMB574,569 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Research and development | 2.18 Research and development Research and development expenses primarily consist of technology infrastructure expenses, payroll and related expenses for employees involved in platform development and internal system support, charges for the usage of the server and computer equipment, and editorial content. |
Other operating expenses | 2.19 Other operating expenses Other operating expenses primarily consist of purchase price of merchandise sold on Dada Now. |
Leases | 2.20 Leases As a lessee The Group leases office space and warehouse facilities in different cities in PRC under non-cancellable operating lease agreements that expire at various dates through October 2024. Effective January 1, 2020, the Group early adopted ASU No. 2016-02 "Leases" (ASC 842) using the modified retrospective approach. The Group elected the transition package of practical Under ASC 842, the Group determines whether an arrangement constitutes a lease and records lease liabilities and ROU assets on its consolidated balance sheets at the lease commencement. The Group measures the operating lease liabilities at the commencement date based on the present value of remaining lease payments over the lease term, which is computed using the Group's incremental borrowing rate, an estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the lease term. The Group measures the operating lease ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense based on lease payments on a straight-line basis over the lease term after the lessor makes the underlying asset available to the Group. Some of the Group's lease contracts include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group does not include renewal option periods in the lease term for which it is not reasonably certain to exercise. Sublease The Group subleases warehouses to its merchants on Dada Now platform under operating leases. In accordance with the provisions of ASC 842, since the Group has not been relieved from the responsibilities as the primary obligor of the warehouse head lease, the Group cannot net the sublease income against its lease payment to calculate the lease liability and ROU asset. The Group's practice has been, and will continue to, straight-line the sub-lease income over the term of the sublease. For the years ended December 31, 2019, 2020 and 2021, gross sublease income of the Group was RMB13,108, RMB16,086, and RMB23,304, respectively, which was included in net revenues in the consolidated statements of operations and comprehensive loss. |
Share-based compensation | 2.21 Share-based compensation The Group accounts for share options and restricted share units granted to employees, directors, and consultants under ASC 718, "Stock Compensation". In accordance with the standard, the Group determines whether a share-based compensation should be classified and accounted for as a liability award or an equity award. Options and restricted share units granted to employees, including directors, vest upon satisfaction of a service condition, which is generally satisfied over four years, and are measured at fair value as of the grant date. Options granted to non-employees with a service condition are accounted for based on the fair value of the equity instrument issued, as this has been determined to be more reliably measurable. On January 1, 2019, the Group adopted ASU 2018-07, "Compensation-Stock Compensation (Topic 718), Improvements to Non-employee Share-Based Payment Accounting", under which the accounting treatment of the stock compensation payments to non-employees is aligned with the requirements for share-based payments granted to employees. Upon adoption, only liability-classified awards that have not been settled and equity-classified awards for which a measurement date has not been established should be remeasured through a cumulative-effect adjustment to retained earnings as of January 1, 2019. The adoption of this new standard did not have a material impact on the Group's consolidated financial statements. Therefore, no cumulative-effect adjustment to retained earnings as of January 1, 2019 was made. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.21 Share-based compensation - continued Additionally, the Group’s incentive plan provides an exercisability clause where employees or non-employees can only exercise vested options upon the occurrence of the event that the Group’s ordinary shares are publicly traded. The satisfaction of the performance condition becomes probable only upon the completion of the Group’s initial public offering ("IPO"). Therefore, with the Company's completion of IPO in June 2020, the Group has recorded the cumulative share-based compensation expenses for these options. According to ASC 718, a change in any of the terms or conditions of equity-based awards shall be accounted for as a modification of the award. Therefore, the Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified. For vested options, the Group would recognize incremental compensation cost on the date of modification and for unvested options, the Group would recognize, prospectively and over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award. |
Loss per share | 2.22 Loss per share Basic loss per share is computed by dividing net loss available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The Company’s convertible redeemable preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. Accordingly, the Group uses the two-class method of computing earnings per share, whereby undistributed net income is allocated on a pro rata basis to each participating share to the extent that each class may share net income for the period. Undistributed net loss is not allocated to preferred shares because they are not contractually obligated to participate in the loss of the Group. Diluted loss per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. The Group had convertible redeemable preferred shares, share options, restricted share units and warrants, which could potentially dilute basic earnings per share in the future. To calculate the number of shares for diluted loss per share, the effect of the convertible redeemable preferred shares is computed using the as-if-converted method; the effect of the stock options, restricted share units and warrant are computed using the treasury stock method. |
Government grants | 2.23 Government grants Government grants are primarily referred to the amounts received from various levels of local governments from time to time which are granted for general corporate purposes and to support the Group's ongoing operations in the region. The grants are determined at the discretion of the relevant government authorities and there are no restrictions on their use. The government grants are recorded as other operating income in the period the cash is received. |
Taxation | 2.24 Taxation Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the consolidated statements of operations and comprehensive loss in the period of the enactment of the change. |
Segment reporting | 2.25 Segment reporting The Group uses management approach to determine operating segment. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker ("CODM") for making decisions in allocation of resource and assessing performance. The Group’s CODM has been identified as the chief executive officer who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single operating segment. The Group’s long-lived assets are all located in the PRC and all of the Group’s revenues are derived from the PRC. Therefore, no geographic information is presented. |
Comprehensive loss | 2.26 Comprehensive loss Comprehensive loss is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss is reported in the consolidated statements of operations and comprehensive loss. Accumulated other comprehensive loss, as presented in the accompanying consolidated balance sheets, represents accumulated foreign currency translation adjustments. |
Recent accounting pronouncements | 2. PRINCIPAL ACCOUNTING POLICIES 2.1 Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for the years presented. 2.2 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries in which it has a controlling financial interest. The results of the subsidiaries, VIE and VIE’s subsidiaries are consolidated from the date on which the Company obtained control and continue to be consolidated until the date that such control ceases. All intercompany balances and transactions between the Group, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated in consolidation. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements In order to comply with the PRC laws and regulations which prohibit or restrict foreign control of companies involved in provision of internet content and other restricted businesses, the Group operates its websites and other restricted businesses in the PRC through Shanghai Qusheng, whose equity interests are held by certain management members and shareholders of the Group ("Nominee Shareholders"), and its wholly-owned subsidiary, JDDJ Youheng. On November 14, 2014, Dada Glory entered into a series of contractual agreements with Shanghai Qusheng and its shareholders, which were amended subsequently primarily for change of nominee shareholders. The following is a summary of the agreements which allow Dada Glory to exercise effective control over Shanghai Qusheng: Share Pledge Agreements Pursuant to the share pledge agreements, each of the shareholders of the VIE has pledged the security interest in their respective equity interests in the VIE, representing 100% equity interests in the VIE in aggregate to Dada Glory, to guarantee performance by the shareholders of their obligations under the powers of attorney, the exclusive business cooperation agreement and the exclusive option agreement, as well as the performance by the VIE of its obligations under the exclusive business cooperation agreement and the exclusive option agreement. In the event of a breach by the VIE or any of its shareholders of contractual obligations under these contractual arrangements, Dada Glory, as pledgee, will have the right to take possession of and dispose of the pledged equity interests in the VIE and will have priority in receiving the proceeds from such disposal. The shareholders of the VIE also covenant that, without the prior written consent of Dada Glory, they shall not transfer or agree to other’s transfer of the pledged equity interests, create or allow any new pledge or any other encumbrance on the pledged equity interests. The equity interest pledge agreement will remain effective until the contractual obligations are fully fulfilled and terminated. During the equity pledge period, Dada Glory is entitled to all dividends and other distributions generated by the VIE. Exclusive Business Cooperation Agreement Pursuant to the exclusive business cooperation agreement between Dada Glory and the VIE, Dada Glory has the exclusive right to provide the VIE with complete business support and technical and consulting services, including but not limited to technical services, network support, business consultations, intellectual property licenses, equipment or leasing, marketing consultancy, system integration, product research and development, and system maintenance. Without Dada Glory’s prior written consent, the VIE may not accept any consultations and/or services regarding the matters contemplated by this agreement provided by any third party during the term of the agreement. The VIE agrees to pay Dada Glory service fees at an amount equals to 100% of the net income generated by the VIE, which should be paid on a monthly basis. Dada Glory has the exclusive ownership of all he intellectual property rights created as a result of the performance of the exclusive business cooperation agreement. To guarantee the VIE’s performance of its obligations thereunder, the shareholders of the VIE have pledged all of their equity interests in the VIE to Dada Glory pursuant to the share pledge agreement. The exclusive business cooperation agreement has an initial term of 10 years and shall be extended if confirmed in writing by Dada Glory prior to the expiration. The extended term shall be determined by Dada Glory, and the VIE shall accept such extended term unconditionally. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued Exclusive Option Agreements Pursuant to the exclusive option agreements, each of the shareholders of the VIE has irrevocably granted Dada Glory, or any person designated by Dada Glory, an exclusive option to purchase all or part of its equity interests in the VIE. Dada Glory may exercise such options at a price equal to the lowest price as permitted by applicable PRC laws at the time of transfer of equity. The VIE and the shareholders of the VIE covenant that, without Dada Glory’s prior written consent, they will not, among other things, (i) supplement, change or amend the VIE’s articles of association and bylaws, (ii) increase or decrease the VIE’s registered capital or change its structure of registered capital, (iii) create any pledge or encumbrance on their equity interests in the VIE, other than those created under the equity interest pledge agreement, (iv) sell, transfer, mortgage, or dispose of their legal or beneficial interests in and any assets of the VIE and any legal or beneficial interests, (v) enter into any material contract by the VIE, except in the ordinary course of business, or (vi) merge or consolidate the VIE with any other entity. The exclusive option agreement has an initial term of ten years, and at the end of the initial term shall be renewed for a further term as specified by Dada Glory or terminated by Dada Glory in its sole discretion. Powers of Attorney Pursuant to the power of attorney, each of the shareholders of the VIE has executed a power of attorney to irrevocably authorize Dada Glory, or any person designated by Dada Glory, to act as its attorney-in-fact to exercise all of its rights as a shareholder of the VIE, including, but not limited to, the right to propose, convene and attend shareholders’ meetings, (ii) vote on any resolution on behalf of the shareholders that require the shareholders to vote under PRC law and the VIE’s articles of association, such as the sale, transfer, pledge and disposal of all or part of a shareholder’s equity interest in the VIE, and designate and appoint the VIE’s legal representative, director, supervisor, chief executive officer and other senior management members on behalf of the shareholders. The powers of attorney will remain effective until such shareholder ceases to be a shareholder of the VIE or otherwise instructed by Dada Glory. U.S. GAAP provides guidance on the identification of VIE and financial reporting for entities over which control is achieved through means other than voting interests. The Group evaluates each of its interests in an entity to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affect the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. The irrevocable powers of attorney described above have conveyed all shareholder rights held by the VIE’s shareholders to Dada Glory, including the right to appoint board members who nominate the general managers of the VIE to conduct day-to-day management of the VIE’s businesses, and to approve significant transactions of the VIE. The exclusive option agreements provide Dada Glory with a substantive kick-out right of the VIE shareholders through an exclusive option to purchase all or any part of the shareholders’ equity interest in the VIE at the lowest price permitted under the PRC laws then in effect. In addition, through the exclusive business cooperation agreement, Dada Glory has established the right to receive benefits from the VIE that could potentially be significant to the VIE, and through the share pledge agreement, Dada Glory has, in substance, an obligation to absorb losses of the VIE that could potentially be significant to the VIE. As these contractual arrangements allow the Group to effectively control the VIE and to derive substantially all of the economic benefits from it, the Group has consolidated the VIE. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued Risks in relation to the VIE structure The Company believes that the contractual arrangements amongst Dada Glory, Shanghai Qusheng and their respective shareholders are in compliance with PRC law and are legally enforceable. The shareholders of Shanghai Qusheng are also shareholders of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, Shanghai Qusheng and their shareholders may fail to take certain actions required for the Company’s business or to follow the Company’s instructions despite their contractual obligations to do so. Furthermore, if Shanghai Qusheng or their shareholders do not act in the best interests of the Company under the contractual arrangements and any dispute relating to these contractual arrangements remains unresolved, the Company will have to enforce its rights under these contractual arrangements through the operations of PRC law and courts and therefore will be subject to uncertainties in the PRC legal system. All of these contractual arrangements are governed by PRC law and provided for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements, which may make it difficult to exert effective control over Shanghai Qusheng, and its ability to conduct the Company’s business may be adversely affected. The following amounts and balances of the consolidated VIE were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions: As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 512 3,961 Accounts receivable, net 367 760 Amount due from related parties 1,956 476 Prepayments and other current assets 6,851 3,287 Property and equipment, net 461 245 Intangible assets, net 12,774 10,938 Operating lease right-of-use assets 2,255 791 Other non-current assets — 93 Total assets 25,176 20,551 Payable to riders and drivers 1,313 404 Amount due to related parties 32 32 Accrued expenses and other current liabilities 13,885 12,542 Operating lease liabilities 830 192 Non-current operating lease liabilities 1,053 412 Total liabilities 17,113 13,582 Years ended December 31, 2019 2020 2021 RMB RMB RMB Net Revenues 3,183 3,293 13,104 Net loss (38,674) (49,741) (58,641) Net cash provided by operating activities 14,612 535 4,308 Net cash used in investing activities (14,604) (59) (859) 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.2 Basis of consolidation - continued VIE Arrangements - continued The VIE contributed approximately 0.1%, 0.1% and 0.2% of the Group’s consolidated net revenues for the years ended December 31, 2019, 2020 and 2021, respectively. As of December 31, 2020 and 2021, the VIE accounted for approximately 0.3% and 0.4% of the consolidated total assets, and approximately 0.7% and 0.9% of the consolidated total liabilities, respectively. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE. However, if the VIE was ever to need financial support, the Group or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE or entrustment loans to the VIE. The Group believes that there are no assets held in the consolidated VIE that can be used only to settle obligations of the VIE, except for paid-in capital, additional paid-in capital ("APIC") and the PRC statutory reserves. As the consolidated VIE is incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Group for any of the liabilities of the consolidated VIE. Relevant PRC laws and regulations restrict the VIE from transferring a portion of their net assets, equivalent to the balance of their paid-in capital, APIC and PRC statutory reserve, to the Group in the form of loans and advances or cash dividends. 2.3 Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. 2.4 Functional currency and foreign currency translation The Group uses Renminbi ("RMB") as its reporting currency. The functional currency of the Company is the United States dollar ("US$" or "USD"). The functional currency of the Company’s subsidiaries, VIE and VIE’s subsidiaries is RMB or USD as determined based on the economic facts and circumstances. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the comprehensive loss. Assets and liabilities of the Company and its subsidiaries with functional currency other than RMB are translated into RMB at fiscal year-end exchange rates. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Income and expense items are translated at average exchange rates during the fiscal year. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as accumulated other comprehensive loss. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.5 Convenience translation The Group’s business is primarily conducted in China and almost all of its revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the then current exchange rates, for the convenience of the readers. Translations of balances in the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2021 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.3726 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2021. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2021, or at any other rate. 2.6 Cash and cash equivalents Cash and cash equivalents primarily consist of cash on hand and cash in bank which is highly liquid and unrestricted as to withdrawal and use. 2.7 Restricted cash The Group’s restricted cash mainly represents cash received from consumers and reserved in bank supervised accounts for payments to retailers on the on-demand retail platform. 2.8 Short-term investments Short-term investments include (i) wealth management products with variable interest rates that the Group expects to receive all the principles and will mature within one year; (ii) time deposits with original maturities longer than three months but less than one year. The Group classifies its investments in wealth management products as held-to-maturity securities, as the Group has the positive intent and ability to hold those securities to maturity. All wealth management products' maturity dates are within one year. The gains recognized from wealth management products recorded in interest income in consolidated statements of operations and comprehensive loss are RMB 6,928 , RMB 7,855 , and RMB 14,524 for the years ended December 31, 2019, 2020 and 2021, respectively. 2.9 Accounts receivable, net Accounts receivable mainly consists of amount due from the Group's customers, which is recorded net of allowance for credit losses.On January 1, 2021, the Group adopted Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326") using the modified retrospective transition method. ASC 326 replaces the incurred loss impairment model with a forward-looking current expected credit loss ("CECL") methodology, which results in more timely recognition of credit losses. The Group has developed a CECL model based on historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, and other factors that may affect its ability to collect from customers. The cumulative effect from the adoption as of January 1, 2021 was immaterial to the consolidated financial statements. 2.10 Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost or market value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is determined based upon factors such as historical and forecasted consumer demand, and promotional environment. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.11 Property and equipment, net Property and equipment is stated at cost less accumulated depreciation and impairment. Property and equipment is depreciated at rates sufficient to write off its costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows: Category Estimated useful lives Computer equipment 3 years Office facilities 3-5 years Vehicles 8 years Software 3-5 years Leasehold improvement Over the shorter of the expected useful life or the lease term Repairs and maintenance costs are charged to operating expenses as incurred, whereas the costs of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the other operating income or expenses of consolidated statements of operations and comprehensive loss. 2.12 Intangible assets, net Intangible assets purchased are recognized and measured at cost upon acquisition. The Group's intangible assets primarily comprise of business cooperation agreement ("BCA"), non-compete commitment ("NCC"), technology, trademark and domain name arising from the Group's acquisition of JDDJ business from JD.com, Inc. ("JD") in 2016, which are recognized and measured at fair value based on a valuation upon acquisition. Following the initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The identifiable intangible assets acquired are amortized on a straight-line basis over the respective useful lives as follows: Category Amortization Years BCA 7 NCC 7 Technology 3.7 Trademark and Domain Name 9-9.7 2.13 Goodwill Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisition of JDDJ business from JD occurred in 2016 and there is no change to the carrying amount of goodwill as of December 31, 2020 and 2021. Goodwill is not amortized but is reviewed at least annually for impairment or earlier, if any indication of impairment exists. In evaluation of goodwill impairment, the Group performs a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the Group compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. The Group has determined it has only one reporting unit and applied quantitative assessment in its annual goodwill impairment analysis as of December 31 of each year. No goodwill impairment was recorded for 2019, 2020 and 2021 as the fair value of the reporting unit significantly exceeded its carrying value at each assessment date. 2. PRINCIPAL ACCOUNTING POLICIES – continued 2.13 Goodwill – continued Application of a goodwill impairment test in quantitative analysis requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. 2.14 Fair value measurement Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it transacts and considers assumptions that market participants use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities. Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.15 Revenue recognition The Group derives its revenues principally from merchants’, individual senders’ and retailers’ use of the Group’s core platforms in connection with on-demand retail platform services and on-demand delivery services. Revenue is stated net of value added tax, discounts and return allowances. Services The Group arranges for on-demand delivery services to be provided through Dada Now platform where it assists the customer, a merchant or an individual sender, in finding a rider to complete a delivery requested by the customer. The Group concludes that it acts as an agent in these transactions as it is not responsible for fulfilling the promise to provide the delivery services, nor does the Group have the ability to control the related services. The Group does not have the ability to control the services provided by riders due to the following: (i) the Group does not pre-purchase or otherwise obtain control of the riders’ services prior to their transfer to the customers; (ii) the Group does not guarantee an order could be taken by a rider; (iii) the Group cannot direct the riders to accept, decline or disregard a transaction request and (iv) the Group’s platform services do not include the delivery services provided to the customers by the riders. The service fee earned by the Group is the difference between the amount paid by the customer based on an upfront quoted fare and the amount earned by the rider based on expected delivery time, distance and other factors, which are both fixed at the time a transaction is entered into with a customer. The Group may record a loss from a transaction when an upfront quoted fare offered to the customer is less than the amount the Group is committed to paying to the rider. The revenue is recognized on a net basis at the point of delivery of merchandise. The loss on this type of transactions is recorded in operations and support costs in the consolidated statements of operations and comprehensive loss, as it is not related to any other current, previous or future transactions with the customer and in substance, is an expense paid to the rider. The losses included in operations and support costs were RMB96,131, RMB76,989 and RMB95,281 for the years ended December 31, 2019, 2020 and 2021, respectively. The Group provides on-demand retail platform services on JDDJ platform. The service revenues primarily consist of commission fees charged to retailers for participating in the Group’s online marketplace, where the Group acts as an agent and its performance obligation is to facilitate the retailers’ online sales of their goods and services through JDDJ. The Group is not primarily obligated to the consumers, does not take inventory risk, and does not have latitude over pricing of the merchandise. Upon successful sales, the Group charges the retailer a fixed rate commission fee based on the sales amount. Commission fee revenues are recognized on a net basis at the point of delivery of merchandise. In addition, the Group fulfills the delivery needs of retailers on JDDJ and other business customers on Dada Now by utilizing the Group’s network of registered riders on Dada Now. Under this type of services, the Group enters into agreements with retailers and other business customers, which enforce the Group’s acceptance of all the related delivery requests at the prices stipulated in the agreements. The Group has determined that it acts as the principal in these transactions as the Group is primarily responsible for the delivery of merchandise and has the ability to control the related services. The Group has the ability to control the services provided by riders as it is responsible for and guarantees identifying and directing riders that meet the quality criteria stipulated in the agreements to complete the deliveries requested by retailers or other business customers. Additionally, the Group has ultimate control over the amounts charged to the customers. Although in this type of services, the riders still have the ability to accept, decline or disregard a delivery assignment, it is the Group’s responsibility to find a replacement and complete the delivery timely. Revenues resulting from these services are recognized on a gross basis at a fixed rate or a pre-determined amount for each completed delivery, with the amounts paid to the riders recorded in operations and support costs. From September 2020, the Group started to engage truckers to provide freight services to logistics companies or merchants on Dada Now. The Group has determined that it acts as the principal in these freight transactions as it has the ability to control the freight services provided by truckers and primarily responsible for the freight services. The related revenue is included in service revenue under Dada Now as presented in the following table of disaggregation of revenues. The Group also provides online marketing services to brand owners and other business customers on JDDJ platform. Revenue is recognized when service is rendered. 2. PRINCIPAL ACCOUNTING POLICIES - continued 2.15 Revenue recognition – continued Other services provided by the Group comprise packaging services provided to retailers on JDDJ, and front-end warehouses services. Revenue is recognized when service is rendered. Goods Sales The Group operates its own e-commerce business and sells delivery equipment and other merchandise on Dada Now. The Group also sells merchandise through unmanned retail shelves. Revenue is recognized on a gross basis as the Group is acting as a principal in these transactions, is responsible for fulfilling the promise to provide the specified merchandise and also has pricing discretion. The Group recognizes revenues net of discounts and return allowances when the goods are delivered to the customers. Incentive programs Customer incentives The Group offers various incentive programs to merchants, individual senders and business customers in the form of coupons or volume-based discounts that are recorded as reduction of revenue as the Group does not receive a distinct good or service in consideration. Rider incentives The Group offers various incentive programs to riders, primarily in the form of volume-based incentives. The riders are not the Group's customers as they do not pay for their use of the Group's platform in any form. Therefore, for transactions where the Group acts as an agent and recognizes revenue on a net basis, the related rider incentives are recorded as a reduction of revenue. The incentive amount in excess of the related revenue is included in operations and support costs. For transactions where the Group acts as a principal and recognizes revenue on a gross basis, the related rider incentives are included in operations and support costs. For the years ended December 31, 2019, 2020 and 2021, incentives to riders recorded in operations and support costs were RMB192,243, RMB143,916 and RMB88,494, respectively, including incentives attributable to transactions where the Group acts as the principal of RMB158,763, RMB114,229 and RMB64,261, respectively. Consumer incentives The consumer incentives are offered to promote the Group's platform or brand owners' products in the form of promotion coupon on JDDJ, which are valid only during a limited period of time. These incentives are provided at the Group's discretion and are not contractually required by the retailers or brand owners. These incentives also do not reduce the overall pricing of the services provided by the Group. As the Group has no performance obligation to consumers, who are not the Group's customers,consume |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
Schedule of major subsidiaries and consolidated VIEs | Percentage of direct or indirect Place of Date of incorporation / economic Name of Company incorporation acquisition ownership Principal activities Subsidiaries Dada Group (HK) Limited ("Dada HK") Hong Kong July 24, 2014 100 % Investment holding Dada Glory Network Technology (Shanghai) Co., Ltd. ("Dada Glory") PRC November 7, 2014 100 % Providing services in connection with on-demand delivery platform ("Dada Now") Shanghai JD Daojia Yuanxin Information Technology Co., Ltd. ("Shanghai JDDJ") PRC April 26, 2016 100 % Providing services in connection with on-demand retail platform ("JDDJ") VIE Shanghai Qusheng Internet Technology Co. Ltd. ("Shanghai Qusheng") PRC July 2, 2014 100 % Holding value-added telecommunications services license of Dada Now and maintaining Dada Now website VIE's Subsidiary Shanghai JD Daojia Youheng E-Commerce Information Technology Co., Ltd. ("JDDJ Youheng") PRC December 3, 2015 100 % Holding value-added telecommunications services license of JDDJ and maintaining JDDJ website |
PRINCIPAL ACCOUNTING POLICIES_2
PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PRINCIPAL ACCOUNTING POLICIES | |
Schedule of amounts and balances of the consolidated VIE that were included in the Group's consolidated financial statements after the elimination of intercompany balances and transactions | As of December 31, 2020 2021 RMB RMB Cash and cash equivalents 512 3,961 Accounts receivable, net 367 760 Amount due from related parties 1,956 476 Prepayments and other current assets 6,851 3,287 Property and equipment, net 461 245 Intangible assets, net 12,774 10,938 Operating lease right-of-use assets 2,255 791 Other non-current assets — 93 Total assets 25,176 20,551 Payable to riders and drivers 1,313 404 Amount due to related parties 32 32 Accrued expenses and other current liabilities 13,885 12,542 Operating lease liabilities 830 192 Non-current operating lease liabilities 1,053 412 Total liabilities 17,113 13,582 Years ended December 31, 2019 2020 2021 RMB RMB RMB Net Revenues 3,183 3,293 13,104 Net loss (38,674) (49,741) (58,641) Net cash provided by operating activities 14,612 535 4,308 Net cash used in investing activities (14,604) (59) (859) |
Schedule of estimated useful lives of property and equipment, net | Category Estimated useful lives Computer equipment 3 years Office facilities 3-5 years Vehicles 8 years Software 3-5 years Leasehold improvement Over the shorter of the expected useful life or the lease term |
Schedule of useful lives of identifiable intangible assets | Category Amortization Years BCA 7 NCC 7 Technology 3.7 Trademark and Domain Name 9-9.7 |
Schedule of disaggregated revenues by revenue | Years ended December 31, 2019 2020 2021 RMB RMB RMB Dada Now: (1) Services 1,954,834 3,377,653 2,753,458 Sales of goods 41,951 56,925 67,254 Subtotal 1,996,785 3,434,578 2,820,712 JDDJ: (2) Services 1,102,913 2,305,411 4,045,550 Total 3,099,698 5,739,989 6,866,262 Notes: (1) Includes net revenues from on-demand delivery services and freight services. Revenue from on-demand delivery services for which the Group acts as a principal was RMB 216,242 , RMB 763,699 and RMB 1,681,121 for the years ended December 31, 2019, 2020 and 2021, respectively. (2) Includes net revenues from (i) commission fee, and advertising and marketing services of RMB 460,006 , RMB 1,211,549 and RMB 2,350,582 for the years ended December 31, 2019, 2020 and 2021, respectively; and (ii) fulfillment services and others of RMB 642,907 , RMB 1,093,862 and RMB 1,694,968 for the years ended December 31, 2019, 2020 and 2021, respectively. |
Schedule of opening and closing balances of the Group's advances from customers | Advances from Customers RMB Opening Balance as of January 1, 2019 3,392 Increase, net 11,965 Ending Balance as of December 31, 2019 15,357 Increase, net 10,894 Ending Balance as of December 31, 2020 26,251 Increase, net 23,264 Ending Balance as of December 31, 2021 49,515 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM INVESTMENTS | |
Summary of short-term investments | As of December 31, 2020 2021 RMB RMB Wealth management products 470,000 568,909 Time deposits 300,000 625,000 Total 770,000 1,193,909 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of prepayments and other current assets | As of December 31, 2020 2021 RMB RMB Loan provided to third party companies (1) — 237,933 VAT receivable 32,031 133,050 Funds receivable from third party mobile and online payment platforms 51,370 49,310 Advance to suppliers mainly for cloud computing service 32,120 25,667 Interest receivable related to bank deposits and wealth management products 27,168 24,779 Deposits mainly for lease of premises 3,676 5,799 Prepaid interest expense 10,082 1,095 Other receivables 19,145 1,384 Prepayments and other current assets 175,592 479,017 Notes: (1) In 2021, the Group made available to third party companies a one- year revolving credit facility of up to RMB 300,000 . The annualized interest rate is 4.5% . |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | As of December 31, 2020 2021 RMB RMB Office facilities 4,864 5,260 Software 15,871 18,720 Computer equipment 10,492 15,551 Vehicles 1,186 1,873 Leasehold improvement 46,513 55,548 Total cost 78,926 96,952 Less: Accumulated depreciation (39,286) (59,397) Property and equipment, net 39,640 37,555 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets, net | As of December 31, 2020 2021 RMB RMB BCA 437,003 427,010 NCC 544,018 531,579 Trademark and domain name 339,471 340,053 Technology 96,000 96,000 Less: Accumulated amortization (908,528) (1,062,325) Intangible assets, net 507,964 332,317 |
Schedule of estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years | Future Amortization Expense RMB For the years ending December 31, 2022 174,844 2023 81,660 2024 35,114 2025 35,107 2026 and thereafter 5,592 Total 332,317 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OPERATING LEASES | |
Schedule of Supplemental cash flow information related to operating leases | Years Ended December 31, 2020 2021 RMB RMB Cash payments for amounts included in measurement of liabilities 48,890 49,864 New operating lease assets obtained in exchange for operating lease liabilities 24,688 18,744 ROU modification due to early surrender — (3,154) Lease liability modification due to early surrender — 2,778 |
Schedule of future lease payments under operating leases | As of December 31, 2020 2021 RMB RMB Within one year 46,050 38,669 Within a period of more than one year but not more than two years 31,381 28,694 Within a period of more than two year but not more than three years 23,813 19,498 Within a period of more than three year but not more than four years 18,607 — Total future lease payments 119,851 86,861 Less: imputed interest 8,589 4,859 Total lease liability balance 111,262 82,002 Less: Current operating lease liabilities 41,737 35,759 Long-term operating lease liabilities 69,525 46,243 |
SHORT-TERM LOAN (Tables)
SHORT-TERM LOAN (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM LOAN | |
Schedule of short-term loan | As of December 31, 2020 2021 RMB RMB Short-term bank borrowing 600,000 100,000 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2020 2021 RMB RMB Salaries and welfare payables 111,344 170,813 Payables to retailers on JDDJ (1) 168,484 143,268 Accrued marketing expenses for JDDJ 73,313 106,307 Advance for online marketing services 24,816 48,518 Deposits from retailers and outsourced agencies 44,751 39,423 Advance for delivery service (2) 29,604 23,894 Professional fee payable 15,108 23,520 Proceeds payable to employees in connection with their sale of ordinary shares 110,103 9,592 Tax payables 205,303 12,693 Others 32,165 42,378 Total 814,991 620,406 Notes: (1) Payables to retailers on JDDJ represent cash collected on behalf of retailers for goods sold through JDDJ. (2) Advance for delivery service represents the prepayments for on-demand delivery services. The amount is refundable if no service is provided. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of assumptions used to determine the fair value of the options | As of December 31, 2019 2020 RMB RMB Expected volatility 37%~40 % 37%~41 % Risk-free interest rate (per annum) 2.4%~3.6 % 1.7%~2.3 % Exercise multiples 2.2 2.2 Expected dividend yield 0.00 % 0.00 % Fair value of underlying ordinary shares US$2.26~3.87 US$4.08~5.79 Fair value of share option US$1.59~3.14 US$3.32~5.03 |
Summary of share option activities under the Option Plans | Weighted Weighted Average Weighted Average Remaining Average Aggregate Number Exercise Contract Life Grant Date Intrinsic of Options Price (years) Fair Value Value US$ US$ US$ Outstanding at January 1, 2021 36,579,248 0.37 5.63 1.13 318,660 Exercised (11,798,979) 0.28 0.63 Forfeited (1,121,620) 0.80 3.59 Outstanding at December 31, 2021 23,658,649 0.50 5.45 1.69 52,644 Expect to vest at December 31, 2021 5,091,956 0.80 7.96 3.42 39,106 Exercisable at December 31, 2021 18,566,693 0.39 4.51 1.03 13,538 |
Restricted share units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted shares activity | Number of Restricted Share Weighted Average Units Grant Date Fair Value US$ Unvested at January 1, 2021 16,403,126 4.22 Granted 9,253,000 6.04 Vested (4,531,090) 4.00 Forfeited (687,452) 6.75 Unvested at December 31, 2021 20,437,584 4.98 Expected to vest at December 31, 2021 20,437,584 4.98 |
JD Employee Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of restricted shares activity | Number of Restricted Share Weighted Average Units Fair Value US$ Unvested at January 1, 2021 85,560 20.93 Vested (56,131) 20.93 Unvested at December 31, 2021 29,429 20.93 Expected to vest at December 31, 2021 29,429 20.93 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LOSS PER SHARE | |
Schedule for computing loss per share | Years ended December 31, 2019 2020 2021 RMB RMB RMB Numerator: Net loss available to ordinary shareholders of the Company—basic and diluted (2,464,796) (2,080,825) (2,471,127) Denominator: Weighted average number of ordinary shares outstanding 362,644,898 667,844,843 950,697,557 Basic and diluted loss per share (6.80) (3.12) (2.60) |
Schedule of weighted average number of shares excluded from calculation of diluted loss per share. | Years ended December 31, 2019 2020 2021 RMB RMB RMB Series A convertible redeemable preferred shares 77,000,000 — — Series B convertible redeemable preferred shares 37,748,300 — — Series C convertible redeemable preferred shares 44,286,448 — — Series D convertible redeemable preferred shares 64,001,162 — — Series E convertible redeemable preferred shares 93,580,586 — — Series F convertible redeemable preferred shares 116,857,842 — — Share options 37,951,132 42,253,493 18,640,216 Restricted share units 4,505,362 16,188,798 17,133,658 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
TAXATION | |
Schedule of loss by tax jurisdictions | As of December 31, 2019 2020 2021 RMB RMB RMB Loss from PRC operations 1,517,437 1,215,179 2,225,317 Loss from non-PRC operations 161,376 495,140 257,368 Total losses before tax 1,678,813 1,710,319 2,482,685 |
Schedule of current and deferred portion of income tax expenses included in the consolidated statements of operations and comprehensive loss | As of December 31, 2019 2020 2021 RMB RMB RMB Current tax expenses — — — Deferred tax benefits (9,032) (5,143) (11,558) Income tax benefits (9,032) (5,143) (11,558) |
Schedule of reconciliation of difference between PRC statutory income tax rate and the Group's effective income tax rate | Years ended December 31, 2019 2020 2021 RMB RMB RMB Statutory tax rate 25.0 % 25.0 % 25.0 % Effect of different tax rate of subsidiary operation in other jurisdiction (2.4) % (7.3) % (2.6) % Changes in valuation allowance (26.0) % (20.7) % (25.6) % Other expenses not deductible for tax purposes 0.5 % (0.2) % (0.1) % Expired tax loss 0 % (0.2) % (0.6) % True up 0 % (0.2) % (0.1) % Super deduction of research and development expense 3.4 % 3.9 % 4.2 % Effect of tax rate change of deferred tax liabilities 0 % 0 % 0.3 % Effective tax rate 0.5 % 0.3 % 0.5 % |
Schedule of deferred tax assets and deferred tax liabilities | As of December 31, 2020 2021 RMB RMB Deferred tax assets - Net operating loss carry forwards 2,156,396 2,783,606 - Inventories valuation allowance 149 37 - Impairment provision for other non-current assets 1,039 — - Accrued expenses 33,538 41,039 - Advertising expenses 4,748 6,235 Less: Valuation allowance (2,195,870) (2,830,917) Net deferred tax assets — — Deferred tax liabilities - Identifiable intangible assets from business combination 38,558 27,000 Total deferred tax liabilities 38,558 27,000 |
Schedule of movement of valuation allowance | Years ended December 31, 2019 2020 2021 RMB RMB RMB Balance at beginning of the year 1,404,254 1,841,225 2,195,870 Addition 436,971 354,645 635,047 Balance at end of the year 1,841,225 2,195,870 2,830,917 |
CONCENTRATION OF CREDIT RISK (T
CONCENTRATION OF CREDIT RISK (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenues | |
Concentration Risk [Line Items] | |
Schedules of concentration of customers | Years ended December 31, 2019 2020 2021 RMB RMB RMB Customer A 1,564,436 2,214,262 951,328 Customer B 403,287 794,685 1,387,685 |
Accounts receivable | |
Concentration Risk [Line Items] | |
Schedules of concentration of customers | As of December 31, 2020 2021 RMB RMB Customer C * 80,101 Customer D * 45,689 Customer E 107,153 * Customer F 48,172 * Customer G 45,525 * * Less than 10% |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
Summary of transactions with major related parties | Name of related parties Relationship with the Group JD, its subsidiaries and affiliates ("JD Group") Shareholder of the Company Walmart, its subsidiaries and affiliates ("Walmart Group") Shareholder of the Company Years ended December 31, 2019 2020 2021 RMB RMB RMB Revenues Services to JD Group (1) 1,564,436 2,214,262 951,328 Services to Walmart Group (2) 403,287 794,685 1,387,685 Operating expenses Operational support services from JD Group 25,376 79,038 265,635 Purchases from JD Group 47,179 46,407 44,889 As of December 31, 2020 2021 RMB RMB Current assets: Amount due from JD Group 562,194 424,395 Amount due from Walmart Group 84,147 416,272 Total 646,341 840,667 Current liabilities: Amount due to JD Group (1) 26,545 43,042 Amount due to Walmart Group (2) 26,373 28,718 Total 52,918 71,760 |
ADDITIONAL FINANCIAL INFORMAT_2
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY | |
Summary of condensed statements of operations and comprehensive loss | Years ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Note 2) Expenses and income/(loss) Operating expenses (203,191) (513,407) (358,458) (56,249) Interest income 25,327 18,955 29,633 4,650 Foreign exchange loss — — (311) (49) Other operating income — 101 13,334 2,092 Equity in losses of subsidiaries, VIE and VIE's subsidiaries (1,491,917) (1,210,825) (2,155,325) (338,218) Net loss and net loss attributable to the Company (1,669,781) (1,705,176) (2,471,127) (387,774) Accretion of convertible redeemable preferred shares (795,015) (375,649) — — Net loss available to ordinary shareholders (2,464,796) (2,080,825) (2,471,127) (387,774) Net Loss (1,669,781) (1,705,176) (2,471,127) (387,774) Other comprehensive loss Foreign currency translation adjustments (446) (209,963) (39,487) (6,196) Total comprehensive loss (1,670,227) (1,915,139) (2,510,614) (393,970) |
Summary of condensed statements of cashflow | Years ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Note 2) Net cash provided by operating activities 10,460 1,571 42,829 6,722 Net cash used in investing activities (1,586,628) (20,652) (4,001,123) (627,864) Net cash provided by/(used in) financing activities — 5,181,447 (936,655) (146,982) Effect of foreign exchange rate changes on cash and cash equivalents (10,522) (173,133) (22,483) (3,528) Net increase/(decrease) in cash and cash equivalents (1,586,690) 4,989,233 (4,917,432) (771,652) Cash and cash equivalents, beginning of the year 1,627,263 40,573 5,029,806 789,286 Cash and cash equivalents, end of the year 40,573 5,029,806 112,374 17,634 |
ORGANIZATION AND NATURE OF OP_3
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Dada Group (HK) Limited ("Dada HK") | |
Subsidiary or Equity Method Investee [Line Items] | |
Economic ownership (as a percent) | 100.00% |
Dada Glory Network Technology (Shanghai) Co., Ltd. ("Dada Glory") | |
Subsidiary or Equity Method Investee [Line Items] | |
Economic ownership (as a percent) | 100.00% |
Shanghai JD Daojia Yuanxin Information Technology Co., Ltd. ("Shanghai JDDJ") | |
Subsidiary or Equity Method Investee [Line Items] | |
Economic ownership (as a percent) | 100.00% |
Shanghai Qusheng Internet Technology Co. Ltd. ("Shanghai Qusheng") | |
Subsidiary or Equity Method Investee [Line Items] | |
VIEs ownership (as a percent) | 100.00% |
Shanghai JD Daojia Youheng E-Commerce Information Technology Co., Ltd. ("JDDJ Youheng") | |
Subsidiary or Equity Method Investee [Line Items] | |
Economic ownership (as a percent) | 100.00% |
PRINCIPAL ACCOUNTING POLICIES -
PRINCIPAL ACCOUNTING POLICIES - VIE Arrangements (Details) - Dada Glory - Shanghai Qusheng Internet Technology Co. Ltd | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |
Percentage of equity interests pledged by the shareholders of VIE | 100.00% |
Percentage of net income generated by the VIE payable as monthly service fees | 100.00% |
Initial term of the Exclusive Business Cooperation Agreement | 10 years |
Initial term of the Exclusive Option Agreement | 10 years |
PRINCIPAL ACCOUNTING POLICIES_3
PRINCIPAL ACCOUNTING POLICIES - Amounts and balances of the consolidated VIE included in Group's consolidated financial statements after elimination of intercompany balances and transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | ¥ 512,830 | ¥ 5,461,264 | $ 80,474 | ||
Accounts receivable, net | 352,324 | 403,584 | 55,288 | ||
Amount due from related parties | 840,667 | 646,341 | 131,919 | ||
Prepayments and other current assets | 479,017 | 175,592 | 75,168 | ||
Property and equipment, net | 37,555 | 39,640 | 5,893 | ||
Intangible assets, net | 332,317 | 507,964 | 52,148 | ||
Operating lease right-of-use assets | 76,811 | 107,120 | 12,053 | ||
Other non-current assets | 33,181 | 12,715 | 5,207 | ||
TOTAL ASSETS | 5,280,580 | 9,547,026 | 828,639 | ||
Payable to riders and drivers | 580,983 | 717,496 | 91,169 | ||
Amount due to related parties | 71,760 | 52,918 | 11,261 | ||
Operating lease liabilities | 35,759 | 41,737 | 5,611 | ||
Non-current operating lease liabilities | 46,243 | 69,525 | 7,257 | ||
TOTAL LIABILITIES | 1,491,951 | 2,519,071 | $ 234,120 | ||
Net Revenues | 6,866,262 | $ 1,077,466 | 5,739,989 | ¥ 3,099,698 | |
Net loss | (2,471,127) | (387,774) | (1,705,176) | (1,669,781) | |
Net cash provided by operating activities | (2,657,580) | (417,032) | (1,108,207) | (1,297,838) | |
Net cash used in investing activities | (686,663) | $ (107,752) | (229,757) | (267,460) | |
VIEs | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 3,961 | 512 | |||
Accounts receivable, net | 760 | 367 | |||
Amount due from related parties | 476 | 1,956 | |||
Prepayments and other current assets | 3,287 | 6,851 | |||
Property and equipment, net | 245 | 461 | |||
Intangible assets, net | 10,938 | 12,774 | |||
Operating lease right-of-use assets | 791 | 2,255 | |||
Other non-current assets | 93 | ||||
TOTAL ASSETS | 20,551 | 25,176 | |||
Payable to riders and drivers | 404 | 1,313 | |||
Amount due to related parties | 32 | 32 | |||
Accrued expenses and other current liabilities | 12,542 | 13,885 | |||
Operating lease liabilities | 192 | 830 | |||
Non-current operating lease liabilities | 412 | 1,053 | |||
TOTAL LIABILITIES | 13,582 | 17,113 | |||
Net Revenues | 13,104 | 3,293 | 3,183 | ||
Net loss | (58,641) | (49,741) | (38,674) | ||
Net cash provided by operating activities | 4,308 | 535 | 14,612 | ||
Net cash used in investing activities | ¥ (859) | ¥ (59) | ¥ (14,604) | ||
Percentage of consolidated net revenues contributed by VIE | 0.20% | 0.20% | 0.10% | 0.10% | |
Percentage of consolidated total assets accounted for by VIE | 0.40% | 0.30% | 0.40% | ||
Percentage of consolidated total liabilities accounted for by VIE | 0.90% | 0.70% | 0.90% |
PRINCIPAL ACCOUNTING POLICIES_4
PRINCIPAL ACCOUNTING POLICIES - Property and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Office facilities | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Office facilities | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 8 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
PRINCIPAL ACCOUNTING POLICIES_5
PRINCIPAL ACCOUNTING POLICIES - Intangible assets, net (Details) | 12 Months Ended |
Dec. 31, 2021 | |
BCA | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives of identifiable intangible assets | 7 years |
NCC | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives of identifiable intangible assets | 7 years |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives of identifiable intangible assets | 3 years 8 months 12 days |
Trademark and Domain Name | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives of identifiable intangible assets | 9 years |
Trademark and Domain Name | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful lives of identifiable intangible assets | 9 years 8 months 12 days |
PRINCIPAL ACCOUNTING POLICIES_6
PRINCIPAL ACCOUNTING POLICIES - Disaggregation Of Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Disaggregation of Revenue [Line Items] | ||||
Losses from services | ¥ (2,471,127) | $ (387,774) | ¥ (1,705,176) | ¥ (1,669,781) |
Total revenues | 6,866,262 | $ 1,077,466 | 5,739,989 | 3,099,698 |
Operations and support costs | ||||
Disaggregation of Revenue [Line Items] | ||||
Rider incentives | 88,494 | 143,916 | 192,243 | |
Rider incentives attributable to transactions where the Group acts as a principal | 64,261 | 114,229 | 158,763 | |
Consumer incentives | 715,883 | 2,223,109 | 321,178 | |
Selling and marketing expenses | ||||
Disaggregation of Revenue [Line Items] | ||||
Consumer incentives | 1,166,032 | 0 | 937,713 | |
Dada Now platform | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,820,712 | 3,434,578 | 1,996,785 | |
Dada Now platform | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,753,458 | 3,377,653 | 1,954,834 | |
Dada Now platform | On-demand delivery services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,681,121 | 763,699 | 216,242 | |
Dada Now platform | On-demand delivery services | Operations and support costs | ||||
Disaggregation of Revenue [Line Items] | ||||
Losses from services | 95,281 | 76,989 | 96,131 | |
Dada Now platform | Sales of goods | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 67,254 | 56,925 | 41,951 | |
JDDJ platform | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4,045,550 | 2,305,411 | 1,102,913 | |
JDDJ platform | Fulfillment services and others | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,694,968 | 1,093,862 | 642,907 | |
JDDJ platform | Commission fee, and advertising and marketing services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | ¥ 2,350,582 | ¥ 1,211,549 | ¥ 460,006 |
PRINCIPAL ACCOUNTING POLICIES_7
PRINCIPAL ACCOUNTING POLICIES - Group's advances from customers (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PRINCIPAL ACCOUNTING POLICIES | |||
Opening balance | ¥ 26,251 | ¥ 15,357 | ¥ 3,392 |
Increase , net | 23,264 | 10,894 | 11,965 |
Closing balance | 49,515 | 26,251 | 15,357 |
Revenue recognized from opening balance | ¥ 26,251 | ¥ 15,357 | ¥ 3,392 |
PRINCIPAL ACCOUNTING POLICIES_8
PRINCIPAL ACCOUNTING POLICIES - Additional information (Details) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥)item$ / ¥ | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
PRINCIPAL ACCOUNTING POLICIES | |||
Foreign currency exchange rate | $ / ¥ | 6.3726 | ||
Gain on investments | ¥ 14,524 | ¥ 7,855 | ¥ 6,928 |
Number of reporting units | item | 1 | ||
Goodwill impairment loss | ¥ 0 | 0 | |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true | ||
Revenue, Remaining Performance Obligation, Optional Exemption, Variable Consideration [true false] | true | ||
Commission fee, advertising and marketing services | ¥ 574,569 | 247,858 | 133,669 |
Lease, Practical Expedients, Package [true false] | true | ||
Sublease income | ¥ 23,304 | ¥ 16,086 | ¥ 13,108 |
Service period for Options and restricted share units granted to employees, including directors | 4 years |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |||
Impairment of property and equipment | $ 0 | $ 0 | $ 0 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
SHORT-TERM INVESTMENTS | |||
Wealth management products | ¥ 568,909 | ¥ 470,000 | |
Time deposits | 625,000 | 300,000 | |
Total | ¥ 1,193,909 | $ 187,350 | ¥ 770,000 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
PREPAYMENTS AND OTHER CURRENT ASSETS | |||
Loan provided to third party companies | ¥ 237,933 | ||
VAT receivable | 133,050 | ¥ 32,031 | |
Funds receivable from third party mobile and online payment platforms | 49,310 | 51,370 | |
Advance to suppliers mainly for cloud computing service | 25,667 | 32,120 | |
Interest receivable related to bank deposits and wealth management products | 24,779 | 27,168 | |
Deposits mainly for lease of premises | 5,799 | 3,676 | |
Prepaid interest expense | 1,095 | 10,082 | |
Other receivables | 1,384 | 19,145 | |
Prepayments and other current assets | 479,017 | $ 75,168 | ¥ 175,592 |
Maximum amount of borrowing capacity | ¥ 300,000 | ||
Interest rate | 4.50% | 4.50% |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
PROPERTY AND EQUIPMENT, NET | |||
Total cost | ¥ 96,952 | ¥ 78,926 | |
Less: Accumulated depreciation | (59,397) | (39,286) | |
Property and equipment, net | 37,555 | $ 5,893 | 39,640 |
Office facilities | |||
PROPERTY AND EQUIPMENT, NET | |||
Total cost | 5,260 | 4,864 | |
Software | |||
PROPERTY AND EQUIPMENT, NET | |||
Total cost | 18,720 | 15,871 | |
Computer equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Total cost | 15,551 | 10,492 | |
Vehicles | |||
PROPERTY AND EQUIPMENT, NET | |||
Total cost | 1,873 | 1,186 | |
Leasehold improvement | |||
PROPERTY AND EQUIPMENT, NET | |||
Total cost | ¥ 55,548 | ¥ 46,513 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
PROPERTY AND EQUIPMENT, NET | ||
Depreciation expenses | ¥ 18,826 | ¥ 17,189 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Finite-Lived Intangible Assets [Line Items] | |||
Less: Accumulated amortization | ¥ (1,062,325) | ¥ (908,528) | |
Intangible assets, net | 332,317 | $ 52,148 | 507,964 |
BCA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 427,010 | 437,003 | |
NCC | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 531,579 | 544,018 | |
Trademark and domain name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | 340,053 | 339,471 | |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, gross | ¥ 96,000 | ¥ 96,000 |
INTANGIBLE ASSETS, NET - Estima
INTANGIBLE ASSETS, NET - Estimated Amortization Expense (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
INTANGIBLE ASSETS, NET | |||
2022 | ¥ 174,844 | ||
2023 | 81,660 | ||
2024 | 35,114 | ||
2025 | 35,107 | ||
2026 and thereafter | 5,592 | ||
Intangible assets, net | ¥ 332,317 | $ 52,148 | ¥ 507,964 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INTANGIBLE ASSETS, NET | ||
Amortization expenses | ¥ 173,741 | ¥ 184,083 |
OPERATING LEASES - Supplemental
OPERATING LEASES - Supplemental cash flow information related to operating leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING LEASES | |||
Cash payments for amounts included in measurement of liabilities | ¥ 49,864 | ¥ 48,890 | |
New operating lease assets obtained in exchange for operating lease liabilities | 18,744 | 24,688 | |
ROU modification due to early surrender | (3,154) | ||
Lease liability modification due to early surrender | 2,778 | ||
Operating Lease, Cost | 50,537 | 47,915 | ¥ 58,713 |
Short-term Lease | ¥ 9,256 | ¥ 13,548 | |
Weighted average remaining lease term | 2 years 6 months | 3 years 1 month 6 days | |
Weighted average discount rate | 4.80% | 4.80% |
OPERATING LEASES - Future lease
OPERATING LEASES - Future lease payments under operating leases (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
OPERATING LEASES | |||
Within one year | ¥ 38,669 | ¥ 46,050 | |
Within a period of more than one year but not more than two years | 28,694 | 31,381 | |
Within a period of more than two year but not more than three years | 19,498 | 23,813 | |
Within a period of more than three year but not more than four years | 18,607 | ||
Total future lease payments | 86,861 | 119,851 | |
Less: imputed interest | 4,859 | 8,589 | |
Total lease liability balance | 82,002 | 111,262 | |
Less: Current operating lease liabilities | (35,759) | $ (5,611) | (41,737) |
Long-term operating lease liabilities | 46,243 | $ 7,257 | 69,525 |
Future lease payments for short-term leases | ¥ 3,620 | ¥ 2,327 |
SHORT-TERM LOAN (Details)
SHORT-TERM LOAN (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
SHORT-TERM LOAN | |||
Short-term bank borrowing | ¥ 100,000 | $ 15,692 | ¥ 600,000 |
SHORT-TERM LOAN- Additional inf
SHORT-TERM LOAN- Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Short-term Debt [Line Items] | |||
Interest rate | 2.75% | ||
Borrowing term | 1 year | 1 year | |
Interest expenses | ¥ 13,806 | $ 2,166 | ¥ 11,830 |
Bank Time Deposits | |||
Short-term Debt [Line Items] | |||
Time deposits | ¥ 100,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Salaries and welfare payables | ¥ 170,813 | ¥ 111,344 | |
Payables to retailers on JDDJ | 143,268 | 168,484 | |
Accrued marketing expenses for JDDJ | 106,307 | 73,313 | |
Advance for online marketing services | 48,518 | 24,816 | |
Deposits from retailers and outsourced agencies | 39,423 | 44,751 | |
Advance for delivery service | 23,894 | 29,604 | |
Professional fee payable | 23,520 | 15,108 | |
Proceeds payable to employees in connection with their sale of ordinary shares | 9,592 | 110,103 | |
Tax payables | 12,693 | 205,303 | |
Others | 42,378 | 32,165 | |
Total | ¥ 620,406 | $ 97,355 | ¥ 814,991 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020CNY (¥) | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019shares | Jan. 01, 2019$ / shares | |
2015 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized | 61,605,996 | ||||
Options expire term | 10 years | ||||
2015 Plan | Employee options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | ¥ | ¥ 131,344 | ||||
Share options granted | 0 | ||||
2015 Plan | Non-employee options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Stock-based compensation expense | ¥ | ¥ 0 | ¥ 0 | ¥ 34,285 | ||
Share options granted | 0 | 0 | 0 | ||
2015 Plan | Non-employee options | ASU 2018-07 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of the ordinary share (per share) | $ / shares | $ 2.26 | ||||
2020 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized | 45,765,386 | ||||
Options expire term | 10 years | 10 years | |||
Increase in authorized share capital per annum | 1.00% | ||||
2015 Plan and 2020 Plan | Employee options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Stock-based compensation expense | ¥ | ¥ 52,569 | ¥ 131,344 |
SHARE-BASED COMPENSATION - Fair
SHARE-BASED COMPENSATION - Fair value of the options at the respective grant (Details) - 2015 Plan - Non-employee options - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 37.00% | 37.00% |
Expected volatility, maximum | 41.00% | 40.00% |
Risk-free interest rate, minimum | 1.70% | 2.40% |
Risk-free interest rate, maximum | 2.30% | 3.60% |
Exercise multiples | 2.2 | 2.2 |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of underlying ordinary shares | $ 4.08 | $ 2.26 |
Fair value of share option | 3.32 | 1.59 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of underlying ordinary shares | 5.79 | 3.87 |
Fair value of share option | $ 5.03 | $ 3.14 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share option under the option plans (Details) - Non-employee options - 2015 Plan $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2021CNY (¥)shares | |
Share option activities | |||
Outstanding at beginning of the period (in shares) | shares | 36,579,248 | ||
Exercised (in shares) | shares | (11,798,979) | ||
Forfeited (in shares) | shares | (1,121,620) | ||
Outstanding at end of the period (in shares) | shares | 23,658,649 | 36,579,248 | |
Expect to vest (in shares) | shares | 5,091,956 | 5,091,956 | |
Options exercisable (in shares) | shares | 18,566,693 | 18,566,693 | |
Weighted average exercise price | |||
Outstanding at beginning of the period (in dollars per share) | $ 0.37 | ||
Exercised (in dollars per share) | 0.28 | ||
Forfeited (in dollars per share) | 0.80 | ||
Outstanding at end of the period (in dollars per share) | 0.50 | $ 0.37 | |
Expect to vest (in dollars per share) | 0.80 | ||
Options exercisable (in dollars per share) | $ 0.39 | ||
Weighted average remaining contractual term (Years) | |||
Outstanding (years) | 5 years 5 months 12 days | 5 years 7 months 17 days | |
Expect to vest (years) | 7 years 11 months 15 days | ||
Options exercisable (years) | 4 years 6 months 3 days | ||
Weighted average grant date fair value | |||
Outstanding at beginning of the period (in dollars per share) | $ 1.13 | ||
Exercised (in dollars per share) | 0.63 | ||
Forfeited (in dollars per share) | 3.59 | ||
Outstanding at end of the period (in dollars per share) | 1.69 | $ 1.13 | |
Expect to vest (in dollars per share) | 3.42 | ||
Options exercisable (in dollars per share) | $ 1.03 | ||
Aggregate Intrinsic Value | |||
Outstanding at beginning of the period | $ | $ 318,660 | ||
Outstanding at ending of the period | $ | 52,644 | $ 318,660 | |
Expect to vest | $ | 39,106 | ||
Options exercisable | $ | $ 13,538 | ||
Unrecognized compensation expense | ¥ | ¥ 81,503 | ||
Weighted average remaining service period | 1 year 9 months 25 days |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted share units (Details) | 12 Months Ended | ||||
Dec. 31, 2021$ / sharesshares | Dec. 31, 2020shares | Dec. 31, 2021¥ / shares | Jan. 20, 2020$ / shares | Jan. 20, 2020¥ / shares | |
Restricted share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 9,253,000 | ||||
Employee and Non employee options | 2020 Plan | Restricted share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 9,253,000 | ||||
Vesting period (in years) | 4 years | ||||
Fair value of the ordinary share (per share) | (per share) | $ 6.04 | ¥ 38.48 | |||
Employee options | 2015 Plan and 2020 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Employees and executives options | 2015 Plan and 2020 Plan | Restricted share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 17,995,626 | ||||
Fair value of the ordinary share (per share) | (per share) | $ 4.36 | ¥ 28.42 | |||
Employees and executives options | Vesting period of one year | 2015 Plan and 2020 Plan | Restricted share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
Employees and executives options | Vesting period of four years | 2015 Plan and 2020 Plan | Restricted share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 4 years | ||||
Employees and executives options | Vesting period of six years | 2015 Plan and 2020 Plan | Restricted share units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 6 years |
SHARE-BASED COMPENSATION - Re_2
SHARE-BASED COMPENSATION - Restricted share units under 2015 and 2020 plan (Details) - Restricted share units ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021CNY (¥)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Unvested at the beginning of the period (in shares) | shares | 16,403,126 | |||
Granted (in shares) | shares | 9,253,000 | |||
Vested (in shares) | shares | (4,531,090) | |||
Forfeited (in shares) | shares | (687,452) | |||
Unvested the end of the period (in shares) | shares | 20,437,584 | 16,403,126 | ||
Expected to vest | shares | 20,437,584 | 20,437,584 | ||
Weighted-average grant date fair value | ||||
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 4.22 | |||
Granted (in dollars per share) | $ / shares | 6.04 | |||
Vested (in dollars per share) | $ / shares | 4 | |||
Forfeited (in dollars per share) | $ / shares | 6.75 | |||
Unvested at the ending of the period (in dollars per share) | $ / shares | 4.98 | |||
Expected to vest (in dollars per share) | $ / shares | $ 4.98 | |||
Stock-based compensation expense | ¥ | ¥ 146,996 | ¥ 185,138 | ¥ 38,272 | |
Unrecognized compensation expense | ¥ | ¥ 647,997 | $ 647,997 | ||
Weighted average remaining service period | 3 years 4 months 17 days |
SHARE-BASED COMPENSATION - JD's
SHARE-BASED COMPENSATION - JD's Share incentive plan (Details) - JD Employee Awards ¥ in Thousands | Jan. 01, 2019$ / shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021CNY (¥)$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | ¥ | ¥ 8,378 | ¥ 9,311 | ¥ 12,896 | ||
Unrecognized compensation expense | ¥ | ¥ 3,924 | ¥ 3,924 | |||
Weighted average remaining service period | 5 months 23 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Unvested at the beginning of the period (in shares) | shares | 85,560 | ||||
Vested (in shares) | shares | (56,131) | ||||
Unvested the end of the period (in shares) | shares | 29,429 | 85,560 | |||
Expected to vest | shares | 29,429 | 29,429 | |||
Weighted-average grant date fair value | |||||
Unvested at the beginning of the period (in dollars per share) | ¥ 20.93 | ||||
Vested (in dollars per share) | 20.93 | ||||
Unvested at the ending of the period (in dollars per share) | 20.93 | ||||
Expected to vest (in dollars per share) | ¥ 20.93 | ||||
ASU 2018-07 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of the ordinary share (per share) | $ 20.93 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021USD ($) | Dec. 31, 2020CNY (¥)shares | Jun. 30, 2020CNY (¥)shares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021¥ / shares | Dec. 31, 2020$ / shares | Jun. 30, 2020$ / shares | |
ORDINARY SHARES | ||||||||
Par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Value of shares repurchased | ¥ | ¥ 968,409 | |||||||
2021 Share Repurchase Program | ||||||||
ORDINARY SHARES | ||||||||
Value of shares repurchased | $ 150,000 | ¥ 968,409 | $ 150,000 | |||||
Share repurchase (in shares) | shares | 28,099,564 | 28,099,564 | ||||||
Weighted average price per share of shares repurchased | (per share) | $ 5.34 | ¥ 34.03 | ||||||
IPO | ||||||||
ORDINARY SHARES | ||||||||
Ordinary shares issued (in shares) | shares | 89,491,548 | |||||||
Par value (in dollars per share) | $ / shares | $ 4 | |||||||
Proceeds from ordinary shares issued | ¥ | ¥ 2,357,823 | |||||||
Follow On Public Offering | ||||||||
ORDINARY SHARES | ||||||||
Ordinary shares issued (in shares) | shares | 36,000,000 | |||||||
Par value (in dollars per share) | $ / shares | $ 12.50 | |||||||
Proceeds from ordinary shares issued | ¥ | ¥ 2,816,190 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss available to ordinary shareholders of the Company-basic and diluted | ¥ (2,471,127) | $ (387,774) | ¥ (2,080,825) | ¥ (2,464,796) |
Denominator | ||||
Weighted average number of ordinary shares outstanding-basic | 950,697,557 | 950,697,557 | 667,844,843 | 362,644,898 |
Weighted average number of ordinary shares outstanding-diluted | 950,697,557 | 950,697,557 | 667,844,843 | 362,644,898 |
Loss per share-basic | (per share) | ¥ (2.60) | $ (0.41) | ¥ (3.12) | ¥ (6.80) |
Loss per share-diluted | (per share) | ¥ (2.60) | $ (0.41) | ¥ (3.12) | ¥ (6.80) |
LOSS PER SHARE - Weighted avera
LOSS PER SHARE - Weighted average number of shares excluded from calculation of diluted loss per share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Series A convertible redeemable preferred shares | |||
LOSS PER SHARE | |||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 77,000,000 | ||
Series B convertible redeemable preferred shares | |||
LOSS PER SHARE | |||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 37,748,300 | ||
Series C convertible redeemable preferred shares | |||
LOSS PER SHARE | |||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 44,286,448 | ||
Series D convertible redeemable preferred shares | |||
LOSS PER SHARE | |||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 64,001,162 | ||
Series E Convertible Redeemable Preferred Shares | |||
LOSS PER SHARE | |||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 93,580,586 | ||
Series F convertible redeemable preferred shares | |||
LOSS PER SHARE | |||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 116,857,842 | ||
Share options | |||
LOSS PER SHARE | |||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 18,640,216 | 42,253,493 | 37,951,132 |
Restricted share units | |||
LOSS PER SHARE | |||
Antidilutive securities excluded from computation of diluted loss per share (in shares) | 17,133,658 | 16,188,798 | 4,505,362 |
TAXATION (Details)
TAXATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021HKD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021CNY (¥) | |
Income Tax Disclosure [Line Items] | ||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |
Net operating loss carry forwards | ¥ | ¥ 8,625,584 | ¥ 7,222,966 | ¥ 11,134,427 | |
Hong Kong | ||||
Income Tax Disclosure [Line Items] | ||||
Income tax rate (as a percent) | 16.50% | |||
Hong Kong | First HK dollar 2,000 of profits of corporations | ||||
Income Tax Disclosure [Line Items] | ||||
Income tax rate (as a percent) | 8.25% | |||
Amount of assessable profits under lowered tax rate | $ | $ 2,000 | |||
Mainland China | ||||
Income Tax Disclosure [Line Items] | ||||
Income tax rate (as a percent) | 25.00% | |||
Withholding tax rate (as a percent) | 10.00% | |||
Mainland China | High and New Technology Enterprises ("HNTE") | ||||
Income Tax Disclosure [Line Items] | ||||
Income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |
Mainland China | If the foreign investor owns directly at least 25% of the shares of the FIE | ||||
Income Tax Disclosure [Line Items] | ||||
Minimum percentage of shares in FIE to be held directly by the foreign investor | 25.00% | |||
Mainland China | If the foreign investor owns directly at least 25% of the shares of the FIE | Maximum | ||||
Income Tax Disclosure [Line Items] | ||||
Withholding tax rate (as a percent) | 5.00% |
TAXATION - Loss by tax jurisdic
TAXATION - Loss by tax jurisdictions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
TAXATION | ||||
Loss from PRC operations | ¥ 2,225,317 | ¥ 1,215,179 | ¥ 1,517,437 | |
Loss from non-PRC operations | 257,368 | 495,140 | 161,376 | |
Total losses before tax | ¥ 2,482,685 | $ 389,588 | ¥ 1,710,319 | ¥ 1,678,813 |
TAXATION - Current and deferred
TAXATION - Current and deferred portion of income tax expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
TAXATION | ||||
Deferred tax benefits | ¥ (11,558) | ¥ (5,143) | ¥ (9,032) | |
Income tax benefits | ¥ (11,558) | $ (1,814) | ¥ (5,143) | ¥ (9,032) |
TAXATION - Effective Income tax
TAXATION - Effective Income tax reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
TAXATION | |||
Statutory tax rate | 25.00% | 25.00% | 25.00% |
Effect of different tax rate of subsidiary operation in other jurisdiction | (2.60%) | (7.30%) | (2.40%) |
Changes in valuation allowance | (25.60%) | (20.70%) | (26.00%) |
Other expenses not deductible for tax purposes | (0.10%) | (0.20%) | 0.50% |
Expired tax loss | (0.60%) | (0.20%) | 0.00% |
True up | (0.10%) | (0.20%) | 0.00% |
Super deduction of research and development expenses | 4.20% | 3.90% | 3.40% |
Effect of tax rate change of deferred tax liabilities | 0.30% | 0.00% | 0.00% |
Effective tax rate | 0.50% | 0.30% | 0.50% |
TAXATION - Deferred tax assets
TAXATION - Deferred tax assets and deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||||
Net operating loss carry forwards | ¥ 2,783,606 | ¥ 2,156,396 | ||
Inventories valuation allowance | 37 | 149 | ||
Impairment provision for other non-current assets | 1,039 | |||
Accrued expenses | 41,039 | 33,538 | ||
Advertising expenses | 6,235 | 4,748 | ||
Less: Valuation allowance | (2,830,917) | (2,195,870) | ¥ (1,841,225) | ¥ (1,404,254) |
Deferred tax liabilities | ||||
Identifiable intangible assets from business combination | 27,000 | 38,558 | ||
Total deferred tax liabilities | ¥ 27,000 | ¥ 38,558 |
TAXATION - Movement of valuatio
TAXATION - Movement of valuation allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
TAXATION | |||
Balance at beginning of the year | ¥ 2,195,870 | ¥ 1,841,225 | ¥ 1,404,254 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 635,047 | 354,645 | 436,971 |
Balance at end of the year | ¥ 2,830,917 | ¥ 2,195,870 | ¥ 1,841,225 |
CONCENTRATION OF CREDIT RISK -
CONCENTRATION OF CREDIT RISK - Revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Concentration Risk [Line Items] | ||||
Net Revenues | ¥ 6,866,262 | $ 1,077,466 | ¥ 5,739,989 | ¥ 3,099,698 |
Customer A | Revenues | ||||
Concentration Risk [Line Items] | ||||
Net Revenues | 951,328 | 2,214,262 | 1,564,436 | |
Customer B | Revenues | ||||
Concentration Risk [Line Items] | ||||
Net Revenues | ¥ 1,387,685 | ¥ 794,685 | ¥ 403,287 |
CONCENTRATION OF CREDIT RISK _2
CONCENTRATION OF CREDIT RISK - Accounts receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Concentration Risk [Line Items] | |||
Accounts receivable, net | ¥ 352,324 | $ 55,288 | ¥ 403,584 |
Customer C | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net | 80,101 | ||
Customer D | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net | ¥ 45,689 | ||
Customer E | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net | 107,153 | ||
Customer F | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net | 48,172 | ||
Customer G | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net | ¥ 45,525 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Denominated in RMB | ||
Unusual Risk or Uncertainty [Line Items] | ||
Cash and cash equivalents, restricted cash and short-term investments | ¥ 1,106,546 | ¥ 966,897 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Revenues | ¥ 2,339,013 | ¥ 3,008,947 | ¥ 1,967,723 |
Operating expenses | 265,635 | 79,038 | 25,376 |
Purchases from JD Group | 44,889 | 46,407 | 47,179 |
JD Group | |||
Related Party Transaction [Line Items] | |||
Revenues | 951,328 | 2,214,262 | 1,564,436 |
Walmart group | |||
Related Party Transaction [Line Items] | |||
Revenues | ¥ 1,387,685 | ¥ 794,685 | ¥ 403,287 |
RELATED PARTY TRANSACTIONS - Ba
RELATED PARTY TRANSACTIONS - Balances with Major related parties (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Total | ¥ 840,667 | $ 131,919 | ¥ 646,341 |
Due to Related Parties, Current [Abstract] | |||
Total | 71,760 | $ 11,261 | 52,918 |
JD Group | |||
Current assets: | |||
Total | 424,395 | 562,194 | |
Due to Related Parties, Current [Abstract] | |||
Total | 43,042 | 26,545 | |
Walmart group | |||
Current assets: | |||
Total | 416,272 | 84,147 | |
Due to Related Parties, Current [Abstract] | |||
Total | ¥ 28,718 | ¥ 26,373 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional information (Details) | 12 Months Ended |
Dec. 31, 2021 | |
JD Group | |
Related Party Transaction [Line Items] | |
Purchase agreement term (in years) | 1 year |
JD Group | Operational support services | Minimum | |
Related Party Transaction [Line Items] | |
Service Agreement term (in years) | 1 year |
JD Group | Operational support services | Maximum | |
Related Party Transaction [Line Items] | |
Service Agreement term (in years) | 3 years |
JD Group | BCA | |
Related Party Transaction [Line Items] | |
Service Agreement term (in years) | 6 years |
Walmart group | BCA | |
Related Party Transaction [Line Items] | |
Service Agreement term (in years) | 1 year |
EMPLOYEE BENEFIT (Details)
EMPLOYEE BENEFIT (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
EMPLOYEE BENEFIT | |||
Employee benefit expenses | ¥ 177,521 | ¥ 77,708 | ¥ 103,600 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | |
RESTRICTED NET ASSETS | ||
Appropriation of after-tax income to statutory surplus reserve fund (as a percentage) | 10 | |
Threshold percentage of after-tax income required to be appropriated towards reserve until the reserve balance reaches a specified percentage of registered capital. | 50 | |
Restricted net assets | ¥ 9,409,485 | ¥ 8,612,691 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | Feb. 28, 2022 | Mar. 11, 2022 |
Subsequent Event [Line Items] | ||
Number of share issued | 109,215,017 | |
Subsequent Event | American depositary shares | ||
Subsequent Event [Line Items] | ||
Maximum aggregate value during the next 12-month period | $ 70 | |
Subsequent Event | JD.com | ||
Subsequent Event [Line Items] | ||
Aggregate value of shares issued in exchange of resources | $ 546 | |
Approximate percentage of issued and outstanding shares | 52.00% |
ADDITIONAL FINANCIAL INFORMAT_3
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | ¥ 512,830 | $ 80,474 | ¥ 5,461,264 | ||
Short-term investments | 1,193,909 | 187,350 | 770,000 | ||
Prepayments and other current assets | 479,017 | 75,168 | 175,592 | ||
Total current assets | 3,443,111 | 540,300 | 7,521,982 | ||
Intangible assets, net | 332,317 | 52,148 | 507,964 | ||
Total non-current assets | 1,837,469 | 288,339 | 2,025,044 | ||
TOTAL ASSETS | 5,280,580 | 828,639 | 9,547,026 | ||
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY | |||||
Accrued expenses and other current liabilities | 620,406 | 97,355 | 814,991 | ||
Total current liabilities | 1,418,708 | 222,626 | 2,410,988 | ||
SHAREHOLDERS' EQUITY | |||||
Ordinary shares (US$0.0001 par value, 2,000,000,000, and 2,000,000,000 shares authorized, 941,450,185 and 932,807,045 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 633 | 99 | 639 | ||
Additional paid-in capital | 15,714,015 | 2,465,872 | 16,442,721 | ||
Accumulated deficit | (11,816,229) | (1,854,224) | (9,345,102) | ||
Accumulated other comprehensive loss | (109,790) | (17,228) | (70,303) | ||
TOTAL SHAREHOLDERS' EQUITY | 3,788,629 | 594,519 | 7,027,955 | ¥ (7,190,962) | ¥ (4,776,888) |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,280,580 | 828,639 | 9,547,026 | ||
Reportable legal entity | Parent | |||||
Current assets: | |||||
Cash and cash equivalents | 112,374 | 17,634 | 5,029,806 | ||
Short-term investments | 528,909 | 82,997 | |||
Prepayments and other current assets | 3,163 | 496 | 15,320 | ||
Total current assets | 644,446 | 101,127 | 5,045,126 | ||
Investment in and amount due from subsidiaries, VIE and VIE's subsidiaries | 2,959,723 | 464,445 | 1,657,347 | ||
Intangible assets, net | 186,037 | 29,193 | 327,007 | ||
Total non-current assets | 3,145,760 | 493,638 | 1,984,354 | ||
TOTAL ASSETS | 3,790,206 | 594,765 | 7,029,480 | ||
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY | |||||
Accrued expenses and other current liabilities | 1,577 | 246 | 1,525 | ||
Total current liabilities | 1,577 | 246 | 1,525 | ||
SHAREHOLDERS' EQUITY | |||||
Ordinary shares (US$0.0001 par value, 2,000,000,000, and 2,000,000,000 shares authorized, 941,450,185 and 932,807,045 shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 633 | 99 | 639 | ||
Additional paid-in capital | 15,714,015 | 2,465,872 | 16,442,721 | ||
Accumulated deficit | (11,816,229) | (1,854,224) | (9,345,102) | ||
Accumulated other comprehensive loss | (109,790) | (17,228) | (70,303) | ||
TOTAL SHAREHOLDERS' EQUITY | 3,788,629 | 594,519 | 7,027,955 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | ¥ 3,790,206 | $ 594,765 | ¥ 7,029,480 |
ADDITIONAL FINANCIAL INFORMAT_4
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED BALANCE SHEETS (Parenthetical) (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONDENSED BALANCE SHEETS | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 2,000,000,000 | 2,000,000,000 |
Ordinary shares, shares issued | 955,876,116 | 941,450,185 |
Ordinary shares, shares outstanding | 927,776,552 | 927,776,552 |
Reportable legal entity | Parent | ||
CONDENSED BALANCE SHEETS | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 2,000,000,000 | 2,000,000,000 |
Ordinary shares, shares issued | 955,876,116 | 941,450,185 |
Ordinary shares, shares outstanding | 927,776,552 | 941,450,185 |
ADDITIONAL FINANCIAL INFORMAT_5
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Expenses and income/(loss) | ||||
Interest income | ¥ 110,954 | $ 17,411 | ¥ 65,596 | ¥ 84,276 |
Foreign exchange loss | (1,126) | (177) | (13,370) | |
Other operating income | 156,714 | 24,592 | 60,779 | 75,884 |
Net loss | (2,471,127) | (387,774) | (1,705,176) | (1,669,781) |
Accretion of convertible redeemable preferred shares | (375,649) | (795,015) | ||
Net loss available to ordinary shareholders of Dada Nexus Limited | (2,471,127) | (387,774) | (2,080,825) | (2,464,796) |
Net loss | (2,471,127) | (387,774) | (1,705,176) | (1,669,781) |
Other comprehensive loss | ||||
Foreign currency translation adjustments | (39,487) | (6,196) | (209,963) | (446) |
Total comprehensive loss | (2,510,614) | (393,970) | (1,915,139) | (1,670,227) |
Reportable legal entity | Parent | ||||
Expenses and income/(loss) | ||||
Operating expenses | (358,458) | (56,249) | (513,407) | (203,191) |
Interest income | 29,633 | 4,650 | 18,955 | 25,327 |
Foreign exchange loss | (311) | (49) | ||
Other operating income | 13,334 | 2,092 | 101 | |
Equity in losses of subsidiaries, VIE and VIE's subsidiaries | (2,155,325) | (338,218) | (1,210,825) | (1,491,917) |
Net loss | (2,471,127) | (387,774) | (1,705,176) | (1,669,781) |
Accretion of convertible redeemable preferred shares | (375,649) | (795,015) | ||
Net loss available to ordinary shareholders of Dada Nexus Limited | (2,471,127) | (387,774) | (2,080,825) | (2,464,796) |
Net loss | (2,471,127) | (387,774) | (1,705,176) | (1,669,781) |
Other comprehensive loss | ||||
Foreign currency translation adjustments | (39,487) | (6,196) | (209,963) | (446) |
Total comprehensive loss | ¥ (2,510,614) | $ (393,970) | ¥ (1,915,139) | ¥ (1,670,227) |
ADDITIONAL FINANCIAL INFORMAT_6
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED STATEMENTS OF CASHFLOW (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CONDENSED STATEMENTS OF CASHFLOW | ||||
Net cash provided by operating activities | ¥ (2,657,580) | $ (417,032) | ¥ (1,108,207) | ¥ (1,297,838) |
Net cash used in investing activities | (686,663) | (107,752) | (229,757) | (267,460) |
Net cash provided by/(used in) financing activities | (1,554,505) | (243,936) | 5,891,550 | |
Effect of foreign exchange rate changes on cash and cash equivalents | (51,457) | (8,075) | (188,664) | (22,575) |
Net increase/(decrease) in cash and cash equivalents | (4,950,205) | (776,795) | 4,364,922 | (1,587,873) |
Cash and cash equivalents and restricted cash, beginning of the year | 5,521,055 | 866,374 | 1,156,133 | 2,744,006 |
Cash and cash equivalents and restricted cash, end of the year | 570,850 | 89,579 | 5,521,055 | 1,156,133 |
Reportable legal entity | Parent | ||||
CONDENSED STATEMENTS OF CASHFLOW | ||||
Net cash provided by operating activities | 42,829 | 6,722 | 1,571 | 10,460 |
Net cash used in investing activities | (4,001,123) | (627,864) | (20,652) | (1,586,628) |
Net cash provided by/(used in) financing activities | (936,655) | (146,982) | 5,181,447 | |
Effect of foreign exchange rate changes on cash and cash equivalents | (22,483) | (3,528) | (173,133) | (10,522) |
Net increase/(decrease) in cash and cash equivalents | (4,917,432) | (771,652) | 4,989,233 | (1,586,690) |
Cash and cash equivalents and restricted cash, beginning of the year | 5,029,806 | 789,286 | 40,573 | 1,627,263 |
Cash and cash equivalents and restricted cash, end of the year | ¥ 112,374 | $ 17,634 | ¥ 5,029,806 | ¥ 40,573 |
ADDITIONAL FINANCIAL INFORMAT_7
ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - NOTES TO SCHEDULE I (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reportable legal entity | Parent | |||
Transfer of due from subsidiaries, VIE and VIE's subsidiaries to investment in subsidiaries | ¥ 0 | ¥ 0 | ¥ 438,914 |