DADA - Earnings call transcript Q2 2022

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Operator

Good morning, ladies and gentlemen and thank you for standing by for Dada’s Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the management’s prepared remarks, there will be a question-and-answer session.

As a reminder, today's conference call is being recorded. I will now turn the meeting over to your host for today's call, Ms. Investor Dada. of Head Dong, Relations for Caroline Please proceed, Caroline.

Caroline Dong

and for conference joining you, operator. second you everyone, Hello, earnings Thank our thank quarter call. XXXX

the Philip CTO. Mr. call we CFO; President; and the from Yang, Kuai, Chen, Mr. Chairman Co-Founder Jun and On will talk Q&A Mr. Beck and Kuai your the financials discuss about Chen Mr. will answer Huijian follows. our Jeff today CEO; will that to Mr. guidance. He, Mr. session operations all They then questions available and incoming during company have highlights, Dada, be and

begin, comparable website. to refer our measures. of conference to measures we contains during will we Also, release in non-GAAP you please call Safe which a latest reconciliation that press Harbor statement this measures. to call, Before this GAAP refer I'd certain Please like also our the the earnings discuss statements, IR contains financial non-GAAP release, our forward-looking press earnings remind on to

Finally, stated, in please all conference our RMB. to ahead. It’s pleasure please Kuai. note are go Chairman this during introduce Philip, my that call CEO, figures Mr. now mentioned unless and otherwise

Philip Kuai

Thank support extremely President. announce trusted has next Jeff ready and been for ever today. with resignation as take the and journey turn from With continued Mr. with Vice we I this joining what for appointed have than business emotions Such instrumental everyone joined our the JD.com, I in to you thank I and contributions thank to value the I Today has our believe Board. in the who support Board will Chairman in welcome my create collaboration years good my Board. JD you, Lijun to himself. am pleased as Chairman the that our been of Jeff, the with Dada Xin from has demonstrated and shareholders are the Beck, together. and I and I’d we us also won am announced capabilities, and the the before this I of achieved. as us our like proud to and the Lijun transition eight look mix Dada leadership Under to of inspired forward more the Jun our compelling Caroline, long-standing now strategy trust will of partner CEO. all with deepened He, team and leadership JD. he Dada strong growth and join am chance from Jeff be the more for our and hands. tremendous society. and chapter to Huijian President partnership to Meanwhile, to take thrilled to execution speaks the leads. past the

results. second Now let’s our discuss quarter

are to We continuously announce with in improving Dada operating strong record another growth which pleased quarter revenue Group efficiencies. maintained

the Group updates promotional on net economy, can Work-Related solid well resource to Meanwhile, progress efficiency quarter program During platforms. of the greater consumption believe through employment detail. in policies the our the as embraced consumption Insurance through recovery as improving policies. current and led robust Recently, financial supported compliance Group Dada promote to such our economy. fully and of Starting a in events regulatory in allocation environment, our through fully the the participation go regulatory and employment and see government major results we innovative Injury of industry with platform quality before with total model China general stability as business supports high providing domestic regulations. I’d Dada highlight pilot in growth Consumption to play develop XXXX facilitating will the we of the a net opportunity the adjusted XXXX, Chen Shanghai, percent two platforms part as XX of We some market second more year-over-year. International firmly the points increased XX% margin in loss and narrowed will by Season like revenue development by developments Providers. Beck of aims the

On the by our of to the in the strengths an to local COVID-XX the Dada cities Commission local social daily Group’s we Commerce. fully leveraging actively significant other cooperated fight to appreciation an the affected responsibilities. Beijing government. from embrace Shanghai, anti-pandemic and we the supply by of COVID-XX and local in were In fronts highly platform delivery retail on-demand June, necessities, valued with Shanghai as received quarter letter the contribution during Municipal Shanghai second governments our maintain

Next on deepened our JD.com. cooperation I like would with to provide updates

quarter, unified GMV all second more Xiaoshigou, Shop During JD than within on-demand the Now, the services retail or for year-over-year. brand of the ecosystem, the tripled

delivery Shop the expanded further optimization of For hour result the product search merchant quarter, options offerings local each in availability in Now’s we’ve grids. one to and improve the second base

search percent in exposure increased result, points, by our As compared three rate quarter. previous the with a JD

or For more point entry nearby Fùjìn, this further out to cities. roll we

more has cities in improvements the service. from XX% which GMV have nationwide conversion we nearby nearby by launched quarter-over-quarter. covered in click-through exposure rates, far Driven the So Now tab increased rate and than more the Shop by the

and of Dada operational walk you two highlights platforms, through Now. Now, me JDDJ let our the

to this festival I going a business breakthroughs promotion, in year’s June highlight Before Both would Now made like China. grand Dada into in and of results JDDJ XX’s online the details, promotion. mid-year major the shopping

peak XXX GMV day JDDJ, year-over-year. GMV during and the on the million more by surpassed promotion increased For XX% RMB than

two exceeded XX of number daily consecutive days. For Dada delivered for million Now, orders

the let’s in time platform on-demand retail local JDDJ, more China. on leading Now spend

June innovation of RMB JDDJ focus elaborate year-over-year on XX.X cooperation the number by three XXXX, quarter. Retailer I end JDDJ and active will of the increased the users on of XX% of to brand of continued the the annual be As empowerments, to million. second each in areas. technology

supermarket XXX chains the China. in the retailers. Firstly, category, with our efforts we now XX of with continuing Dealing partnerships have we supermarket top have established empower out to

addition gaining Now. Shop to local and chains, as GMV multiple onboarding supermarket Thanks top increase increased channel conversion XXX more customer to regional as supermarket by the also in traffic or category Now Moreover, signing Shop acquisition. times supermarket momentum of the we leaders. in up well merchants year-over-year. rates, online are In in more offline is

Let’s move insights supplied on to to the consumer our the products we level, consumer home at continued right electronics and category. online. on Based grid move the appliance

in stores more second established product, three were an consumer the second quarter. home largest we quarter, In launched wholesale for During brand electronics partnership with smartphone newly sub-category, Xiaomi than the and official JDDJ. on sales platform appliance XX,XXX as the Xiaomi

X,XXX the now, than listed on accessories XX are JDDJ. and home quarter. there the Xiaomi PC - home further by penetrated offerings year-over-year more in new segments. Xiaomi MI increased stores generated sub-category, GMV we times In second than of stores and more by As the expanded

quarter, Aurora. after with delivery, Canon of large in appliance. including and leading merchants, service sales our home the with formed service collaboration we the partnerships installation capability appliance brands home new In sub-category, and for integrated During we enhanced

on than leading on As a more result, brands the Yili a we as category, mom-and-baby the sub-category year-over-year. sequential cooperation doubled appliance As the home facilitated mom-and-baby more tripled such [Indiscernible] of chains chains JDDJ between and retailer a GMV result, GMV mom-and-baby In basis. of than

home users installation. category, online than [Indiscernible] also XXXX. the with and have X,XXX providing as and [Indiscernible] furniture doubled second [Indiscernible] home smart We chains JDDJ in In smart more one partnerships shopping further smart the in year-over-year. with The more stores brought the XX stores GMV quarter, in and penetrated worked products, established chains log closely [Indiscernible] example, and JD has stop for experience convenient we of with delivery lock than more including integrating like a such

cooperation Secondly, with we forward continue push to our brands.

the space number solidify of of the in terms continued our we leadership with we quarter, of with brands the auto and brands. the engagement the in During to work depth both

In growth year-over-year we exceeding such second brands [Indiscernible] and alcohol as base. marketing quarter, online diversified Our partnerships our as as the beverage new quarter. Daojia well services beverage several XX% such food brand the We [Indiscernible]. partner and in expanded brand tried as further with over recorded

such mom-and-baby Johnson. and as pharmaceutical signed such up we brands addition, In Abbott brands as

teamed Pepsico increased launch products and We and GMV also a door we at nearly [Indiscernible] grand a our results X creating hour that a campaigns. P&G, campaign PM. folds to launch delivery. XX as with good XX and shop slogan X, year-over-year brands brands delivered Get on brand impressive four for with basis. June Orders JD’s On to at promotion campaign slot start PM including price and including Placing X X Total saw to brands marketing and of mom-and-baby your in with with JDDJ up June intensive by offers streaming live partnered joint XXth On that mom-and-baby virtual [Indiscernible] Huggies one a a from participating marketing XX available PM,

GMV the live On these by than of brands times total day increased the year-over-year. more of campaign, streaming three

efforts retailers stores. to the in empower than our and our continued technologies. with X,XXX XXX Haibo also systems to omni-channel we brands June, the retailers by of more merchants of for At been end offer system the deployed has around Thirdly, retailer innovative

Haibo including like penetrated while In stores successfully pet serving have addition, new convenient and categories and stores. supermarkets more mom-and-baby stores

new need challenges. out Haibo rolling help most them to address merchants what features see wherever continued they We and

significant This to through that JD’s we new helps they labor source merchants Haibo that system a to launched when deploying connect procurements JD. warehouse from hours. enabling While save model directly supplies retailers

their procurement by As efficiency result, adopting a saw three improved this model merchants times.

Our store helps Kunce, grid them number which brands. has Earth by System, brands a boost welcomed with growing by shelf providing by data or Grid by or sales been of

we SKU JDDJ availability analysis goods becomes an at growth, help In their Shop Shop Now. and important monitor brands addition, Now simultaneously Kunce’s channel both feature upgraded of shelf for as to increasingly the brands

and the can sales. that So product brands improving supply

Picking Dada partnership we Our with fulfillment also picking Carrefour, our efficiency. digitized and helped picking progress. cost significant in-store improve of the them rate, customer made experience establishment have service Since

after rates customer example, a Picking. complaint three [Indiscernible] Dada to lowered was started picking utilize half by months For related with

results, As have a we of impressive the continued with Carrefour. our to collaboration result deepen

auto chain Now, of by of total stores. Picking coverage stores Dada key received more increased than by increased by quarter in the store second orders penetration in Dada Picking the number and Driven of partnering times Picking with expanded covers year-over-year. all the to three Dada

on-demand Now, the Now, in local China. platform leading move let’s delivery Dada to

start with growth, average maintained and on-demand strategy revenue delivery efficiency Now’s portfolios. significantly XX% to by our also chain Revenue KA year-over-year, I merchants for merchant merchants revenue Dada while will operating positive. optimize our as KA of we gross or profit pricing services improved turned increased business. other and total While

KA provide KAs to generated increased consolidate in integrated unique the our the by position of management Therefore, we ability revenue leading In Our supermarket fulfillment us supermarket from picking gives advantages. year-over-year. warehousing over and second delivery consisting category. continue services to quarter, XX%

category, KA KAs Beverage new addition, we up Walmart. more in growth double In supermarket record the and generated than signed from year-over-year. like revenue beverage In chains Restaurant maintained

business, year-over-year. year-over-year. our unit on than Moving into to over to Send merchants lower we our further economy SME by XX% increased XX% CXC Thanks cities, to increased fulfilled by significantly orders tier penetration optimize year-over-year, for orders continued more while fulfilled

on continued we our ensure mile for to the of delivery, network during last JD cross-sourcing promotional Logistics the mile to and especially last leverage pandemic fulfillment Lastly, amid services, peak flexible campaigns. orders,

strong momentum orders virus our For scenarios. like ESG. to few further I driven on maintained growth picking pickup up, penetration wrap into say And by a would mainly words to service,

needs and the plays we with corporate developments economic value, partners, our At social strategy, with to ESG a that role strategy, key comprehensive satisfying empowering results June, the development committed in on at we the responsibility progress achieve to for sustainable to report an end released pairing that integrating overview China’s consumer ESG and and issues. our society As we can employees’ bring of of increasingly first creating providing so important shareholders company, are our benefit efforts stakeholders our large.

development Going quarter. integrate Beck over our responsibilities. financials to strategies Thank will into that, continue to With to for I initiatives actively shoulder forward, now ESG pass corporate go the you. social Chen long-term we our call will the our and over

Beck Chen

Philip. Thanks,

intercity by Therefore, way going on to XX% RMB XX% will unless just We mainly am of JDDJ. otherwise from year-over-year basis numbers, online to are all items million, Now the housekeeping active our in Net the chain was net marketing promotional of revenue order to Net mainly The the in consumers RMB increased by increase that to performance. order noted. revenues from of JDDJ of by driven figures the as in percentage revenue most Before X.X number in increases give we driven changes Dada merchants. I increased Total volume also increasing by all result and increase billion. services growth in XX% judge and the a XXX quarter due RMB the in the to delivery in the useful increased X.X comparisons advance. services size. to over increases be to by are go to revenue few average Renminbi, activities, which second GMV, revenues contributed billion, believe a

the billion. Moving subscription rising as share in non-GAAP meters as costs expenses this expenses provided to The and G&A business over continues order the of agreement transaction mainly of RMBXXX due increase XX loss Selling to for quarter-over-quarter. an XXX six capabilities. research measures. improving by million consumers, million. of JDDJ RMBXXX ordinary increase to to the technology attract result and to supporting of year-over-year absolute DADA intercity and a was incentives points and on development the to shareholders the were merchants were to attributable expenses control as increasing expenses cost the the RMBX.X company primarily to JDDJ growing February chain year-over-year expenses to with attributable than more cost platform. advertising loss dollar rose consumers million, new expense an platform, RMB JD.com volume increase The primarily was its net and points in delivery flat marketing XX% our cooperation a and side. due JDDJ to the increase from net were the personnel Non-GAAP Now year. amortization RMBX.X marketing Dada Operations strengthen R&D was was rider percentage percentage margin increase amount in and of incentives The in to result on platform billion.

milestone quarter path a In addition, to JDDJ’s margin in the during turned making remarkable positive profitability. our

Pursuant As March cash, of XX, approximately short-term share in billion RMBX.XX repurchased under cash the million US$XX repurchase US$XX of XXXX, of million announced to cash June XXXX program. equivalents, investments. this repurchase our XXXX, company restricted had June in XX, authorization and ADSs we as had

revenue our of RMB terms of XXXX, RMB to billion, be In we outlook XX%. representing the of growth year-over-year net XX% total a quarter rate third to for between billion and expect X.XX X.XX

now session. Thank quarter the And In in third narrow achieve to of begin loss expect and operator, net we the addition, significantly margin to quarter. for prepared the year-over-year the we sequential sixth consecutive This XXXX to improvement remarks. continue our are ready concludes Q&A you.

Operator

Sachs. question is of [Operator Ronald Keung go Instructions] the Please Our Goldman ahead. first line from from

Ronald Keung

Thank you. Philip, Caroline. you, Beck and Thank

So, I have two questions.

it think how roles President in First they a that role increase an is, through should the Chairman director. now we And about see this Board future and get Would independent also be changes? as CEO respectively?

primary far? lifting rates year? improvement kind EBIT Stock second with that points a Exchange so percentage trended is XX net of part subsidy Hong align on the by and Beck and Board is guidelines encouraging Thank or do so to of the comments Kong continuing some user to this expect change my has So turnaround direct you a And the on breakeven if are in eventual year Hong listing And any Kong? in next of you. margin flag where margins that question we

Beck Chen

Okay.

potential Kong thank the Hong of also want the procedures very to are directors out So, being And question, four contribute independent interest. that forward all and eight for past And compliant are not actually is satisfied for backgrounds solid very And, and right we fully so independent you more Kong they directors three growth Ronald. with six company the our are company protect the proactively international female the for future. will now push have we listing directors yes, to thank are in shareholders’ rule. out the directors the years. to the added now, question, also, for we which And to and only those listing Philip of first I which have Hong all contribution six the hope also directors the of actually of

discussion, and that actually operations actually to about the compared a daily will a decreased XX the by a positioning charge responsible subsidy’s future. CEO internal overall ratio yes, now to in security the report role the and first are after in BPS and the question, and second So Board actually President And of so we be be our quarter.

that percentage year. turning next X.X% year, maintained consumer half actually margin QX, in company JDDJ’s be direct third incentive will a GMV in the ratios profits direct have whole will our the the they level forecasted margin our So incentives decreased of be all as to and will we of be first will and decreased turning for contributing and to be in we and expect positive quarter, more positive the the

Ronald Keung

Thank Philip. and Beck, thanks, you,

Philip Kuai

you, Ronald. Thank

Operator

you. Thank

Our go next from Chong Thomas question ahead. Please comes from the Jefferies. line of

Thomas Chong

Hi, questions. morning. competitive space How we JD question agents like JDDJ? after increasing is our that services. JD? we accelerating good launch My with landscape Thank as And a and also the competitive about question synergies change, the these of think days about about first cooperation we the media you. of forward? the seeing different second my should taking management going my Thanks peers social is think advantage about, are should how for we somehow into Should with Board number see entering

Thomas Chong

Language] [Foreign

Jeff Huijian

this Jeff. is so, Okay,

our and enabling leading those – as more our - and the extensively has enabled brands. pure to marketplace a foremost, first all merchants So, those and digitization positioning play chain and with work us and capabilities

of the price. more competitive and us in makes variety, products which prices So, quality

Thomas Chong

[Foreign Language]

Jeff Huijian

with our Yes, retail we compete partners. partners marketplace, always so, our tell we pure never as a

retailing engaging now are we So ourselves.

more why us. with that’s to now retailers those willing work So, are

Thomas Chong

[Foreign Language]

Jeff Huijian

is as decreased said, sequentially. us to limited but our intention increasing very our – even though so impact our are So, I competitors statistically are ratios more the and

but fueled it that rationale continues difficulties So, behind demand high quality with to us needs to the only supplies. is drive

gave with on front a partnering those age So, so long-term. the leading supplying peers our for chain and retailers clear over us the

Thomas Chong

[Foreign Language]

Jeff Huijian

Okay.

our our aging. enable in also we with the partners supply and So, capabilities retail

So, costs for merchants while enhancing Haibo continue so, what to most rolling Haibo reduce to the take them and we need example, system our out an features operating as address new example, efficiencies. help

So, in picking of stores. has of fulfillment is another delivery. as deployed example chain the it And consisting warehousing our retail management XX, integrated and around X,XXX solutions been June

food a is difference and the there on-demand retail the So, key between delivery.

So, stores. this packing in and is retail the picking

reduce through the enable valued model them to our the optimizing labor our the more period. And our to consulting Grid grid System service and digitized each innovative down channel So, our supply Earth integrated shortage which while time the are or solutions fulfillment order Kunce picking order mitigate help partners. like retailers retail sales by picking by brands highly helps lastly, of

Thomas Chong

[Foreign Language]

Jeff Huijian

expanded also categories. And different we are proactively across

as our in can capabilities So, from we – the issuing like have to said digital and supermarket categories expand help and advance easily of complicated categories to most categories, us the categories other system before.

also compared is a our companies. this platform peers to of So, valued our purely capability

Thomas Chong

[Foreign Language]

Jeff Huijian

the brands and we brands the as mainly the have both digitization are offline also retailers consumer offline since also, with top offer And chains brand extensive to brand and and our online channels can retail product the partnerships, across well so as marketing channels we integrated partners distribution tools. critical platform service partnerships our

to to not strong JD on bring also JD’s resources enjoys brands their our particular collaboration, through consumer consumer share. consumer electronics, more So able And sales, board where and channel mind more we and in brands brands only also insights. leverage improve can like but the insights are in generate

the both and that’s terms of the peer brands with and So, the of of actually liking us our is brands. in engagement number

Thomas Chong

[Foreign Language]

Philip Kuai

JD. with collaboration the about talk Let’s

tripled second quarter, to during of GMV more JD.com we year-over-year. the Now, Shop this of deepen Go Shops and So, cooperation year, continue than with the quarter

Thomas Chong

Language] [Foreign

Philip Kuai

expanded improve options and In availability the grid. the base in product of merchant delivery hour Shop offerings one Now’s to further the each local quarter, second we

increased So, percentage as JD a quarter-over-quarter. exposure our search by result, points in rate three

Thomas Chong

[Foreign Language]

Philip Kuai

out for to So tab, nearby this further more or points Fùjìn rolled we cities. entry

the exposure, a by Now’s in in we rate, all quarter-over-quarter XX% tab the services Now GMV. the and tab have driven of launched XX% which nationwide has Shop more nearby far conversion improvements So than by the Shop GMV increased nearby picks covered and from contributing cities and – rate

Thomas Chong

Language] [Foreign

Philip Kuai

so you, Thank much.

Operator

Thank you.

line Our the question America of Leung comes Eddie next from go from ahead. of Lynch. Bank Merrill Please

Eddie Leung

questions. guys. morning, two have Good I quick

behavior. up. us opening For in is on of give one an of Could observations secondly, you in first about then, all any these think consumers purchases their Shanghai And that you the consumer doing the AOV have months inflation? what us JDDJ? remind example, The are of and after of update amid you I you going AOV seen categories. the the change mentioned could continuously

Beck Chen

Okay.

first answer. let So, answer to Philip first I’ll the question Eddie, pass me second and this to

and continue as average average shops increasing order is and of think to JDDJ value first compared by the long which said. up term, XX go platform RMB we So, QX the quarter order to was platform we our in the we value RMB drive XXX, will in the

be with we have to us contribute will diversified our help consumers to improvement. categories and also also and they products of more products margin offered will new contribute all So not higher the only profit AOV to to and the increase levers our diversity which and to platform the are positive direct

Philip Kuai

Eddie, term I you give on side short demand both perspective, side observation. some updates supply long and our from term the and will And

we key term, resilient capabilities the merchant are are chains short – chain seeing with side to in working sides, the much – from strong yes, supply sorry the the supply we and are from with they supply So, turbulence. more the

quarters. That’s with therefore That’s difficulties really out need this to are At the improved our why we couple – have So store. over are with the the most retailer retailers business. environment, partnership last retailers they get are offline why challenging our customers been of working to to of challenge. further the extend facing in the deal stronger under the retailers time, the much have to with same been

that, we for pay it in as and the the of and continues happen from way the does to side, side. have And our that’s example on willingness some it after August, are some from So some bringing to Shanghai do to July, are in recover absolutely is confidence business July cities supply COVID demand different reopened the the their or we across impact consumers well. and has and and you seeing seeing uncertainties

we very So, penetration remain strong. going as side the our for a think very long-term, of I And the local still the is forward, and – while growth low demand confident And area retail future, growth were for at will the brands That’s pick up believe over number supply I the auto believe the retailers percentage digits. we absolutely single retail side tremendous. room of the that future. most one just is the that time, on-demand is the and think term why long for the fulfillment

are So confident. we very much

Eddie Leung

and Philip you, Thank Beck.

Philip Kuai

you. Thank

Operator

you. Thank

next Our ahead. line the question Alicia comes from of Please Citigroup. from Yap go

Alicia Yap

Good Thanks questions the Thank competitive for taking landscape I results. you. on management. have a on Hi. the congrats JDDJ. solid follow-up for and morning,

are players penetrate which categories Dada that actually no I think use actually more more JD fulfilling So, advantage. think aggressively the I and synergies we non-supermarket and and

And follow-up in years? what even Thank direct to how get to that management and so, affect margins that on medium non-supermarket then, volume category you in two future? term the JDDJ a margins next, especially I gateway If the in the for in for if which the or do intensified? can more landscape you. is So for would target expect we is, expect the three mean, that comment the growth the

Philip Kuai

thoughts my of some you to give I’ll and Alicia. if Jeff see add. Beck anything has and Hi

non-supermarket following so much the of are too are been as have onboard expanding But followers we more us without the in they the the successful So, of seeing players we developments. category. categories, in more non-supermarket coming

down the the mainly So so-called non-supermarket see the if are covers we the home the that you liquors or appliance. you category, will electronics, about like talking mom-and-baby break consumer parenting, category

delivery. consumer mindsets have categories very to those comparing all restaurant So food different

– remotely a from linked a very is any platform. food like very restaurant think delivery consumers for a this buying So of buying to different. appliance home totally or it’s It’s smartphone

key. traffic JD mindset that’s I on onboard products come buy I So for we with of think JD, to with leverage Now think mindset we those we development categories. on and are and consumers to JD, on strong happy collaborate the very have very Shop lucky JD that are the consumer can - those the business, the deeply a category And we easily our so they and

I advantages to very think the it’s players are the soon. them – those mind for due all to the difficult of enjoy – similar sharing we anytime other that

Beck Chen

are less margin, supermarket also the which direct means rates much those positive and so company. to all subsidy compared also and the we they we categories, take are direct about every that to subsidizing the so, categories, all margin new actually And about the generate

So, level, we we company’s are in margin margin welcoming And – direct the JDDJ X.X%. our positive margin onboard. our the about all direct trend QX, actually of those categories new direct turned to –

we is company’s key profit and even. are of break further be level increasing half in intentional X% expecting overall XXXX more to and to or the direct very second So, margin than this we which the the year the X% to believe towards increasing keeping to

Alicia Yap

you. Thank

Operator

Thank you.

Chang of comes line Please next Our go from question from the ahead. Andre JPMorgan.

Andre Chang

for you, taking my question Thank a regarding management have JD. follow-up question. our cooperation with I

the out the Shop growth cetera, it by this the by cooperation Now with or path, laid now how further would JD JD. so wonder I ads So, infrastructure flow nearby try et we driven and

be et ecosystem, ads For within or consumers from to visibility or to going more category will different ad electronics, there be more load example, more more exposure Or will cetera. JD FMCG, for get like they we et beyond promote cetera? are

for second be any drivers contribution year and from increase you. to half next JD will helpful. the Thank So, color in our traffic the

Philip Kuai

of anything add. the you give see I’ll if perspective my the some and of also has team Hi, more to Andre. rest

things for at. Number base. user So, terms penetration driver we’re few the one is think in our are of growth on looking JD, there of the key I

with aligned of fully So, are we penetration consumer increase on JD to JD.com. the

penetration aiming in single long the at is we and are then quickly at penetration So, now while XX% growing digits, term. the the

long one in And the term. the in there us to help are and is So, short I number think driver this improve things few term to penetration.

the For and us example, same time, geographically are supply everywhere. you to more are JD.com and and more you expanding and space, we various At on getting like will more more more able so also if from are categories. and see exposure, we bringing more often

from don’t when often, have or because people are before therefore, So products even new and they us can browsing we categories. the that now see searching various the more in products of categories, more supply

more suppliers the them and able as and Now we bring to on are onboard, see JD.com. expand customers stores

So, leverage on help heavy other promotion, don’t the expansion be we so will on to penetration. actually all the WXX can JD in promotion-driven so or the June and of already XXs like exposure all. improve And forth. fully and a those or the at it that, and terms And promotion than successful think us existing I

So, of lot JD successful has promotion.

write together with can we them. Now

I those the at. we are are So think looking strategies

Andre Chang

[Foreign Language]

Jeff Huijian

Okay.

So, further exposure – talk opportunities. elaborate I the on will

consumer products So for the to the example, Now’s produce the prices. closer is if tab, search a they Shop in be much fresh will searching

expand acquiring we minds we in to the channels for heavier finish orders, are JDDJ Thank those So, there products the nearby step the the and ecosystem. traffics will you, JD them will for exposures when and as all very complete will we procedures that this expose, – we And be will recommendation Shop taxing consumer in and products stores. Andre. confident like Now supermarkets. and also, will consumers next the so also when example or the for And different be second placing the within more the category further they orders, are channels in bulk we the for the kidding it more and increase products, so in

Operator

Thank you.

go Our of Wei from Xiong ahead. line Please comes from the UBS. next question

Wei Xiong

I categories? guys we is management supply merchants around I supply challenging merchants, that for number might offset very the my second of taking our be on our the churn product the the a now. I partnership quarter. tail mentioned rate the certain long SME Thank advantage this for believe especially how side Hi. want after of a My issue on we but chains, Will – side leading smaller on not to you follow question that with wonder do the see platform. supermarket have you question. just do I do understand large with

on hear your to want this. just you. So thoughts Thank

Philip Kuai

Sure.

chains, supermarket work chains, side, vertical liquor chains For is key also on. electronics, our with strategy and specialty but mom-and-baby, other the so firstly store supply our only like so consumer not to

all retailers the are chain well. So, more resilient still are them much relatively key and there all those and are of business

of are because from are have happily we seeing substantial other almost help. partnerships seeing not we all impacts on looking for more and So, side. supply retailer that And and our any our actually challenges the with strengths are us, partners hand, seeing the they

the circumstances. So, turbulence through to is much improved the and seeing got with will very think we all able actually that have partnership we are any going like our retailers the – - be confident I

Operator

Ms. further Thank will at no back hand this Dong for you. are remarks. the time. conference Caroline I There to now questions closing

Caroline Dong

for Thank participation you, In Dada's Operator. closing, today's in management call. like of team, you behalf to your thank we'd on

If for This directly. us you require out free reach concludes Thank any joining further call. to you information us feel today. to the

Operator

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Dada Nexus Limited (DADA) 23 Aug 222022 Q2 Earnings call transcript