Dada Nexus Ltd (DADA) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and thank you for standing by for Dada's Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, today's call is being recorded.

女士們，先生們，早上好，感謝大家支持達達2022年第四季度財報電話會議。 （操作員說明）提醒一下，今天的通話正在錄音中。

I will now turn the meeting over to your host for today's call, Ms. Caroline Dong, Head of Investor Relations for Dada. Please proceed, Caroline.

我現在將會議轉交給今天的主持人，達達投資者關係主管 Caroline Dong 女士。請繼續，卡羅琳。

Thank you, operator. Hello, everyone, and thank you for joining our fourth quarter 2022 earnings conference call.

謝謝你，運營商。大家好，感謝您參加我們的 2022 年第四季度財報電話會議。

On the call today from Dada, we have Mr. Jeff Huijian He, President; and Mr. Beck Chen, CFO; and Mr. Jun Yang, Co-Founder and CTO. Mr. He will talk about our operations and company highlights. Then Mr. Chen will discuss the financials and guidance. Please carefully note that during the Q&A session, Jeff will answer to those questions in Chinese and the consecutive translation will be provided.

今天來自達達的電話，我們有總裁 Jeff Huijian He 先生；首席財務官 Beck Chen 先生；以及聯合創始人兼首席技術官楊軍先生。何先生將介紹我們的運營和公司亮點。然後陳先生將討論財務和指導。請注意，在問答環節，Jeff 將用中文回答這些問題，並提供連續翻譯。

In case of any discrepancy between the original remarks and the translated version statements in the original remarks should prevail. Before we begin, I'd like to remind you that this conference call contains forward-looking statements. Please refer to our latest safe harbor statement in the earnings press release on our IR website, which applies to this call.

原文註解與譯文如有出入，以原文註解為準。在我們開始之前，我想提醒您，本次電話會議包含前瞻性陳述。請參閱我們 IR 網站上適用於此次電話會議的收益新聞稿中的最新安全港聲明。

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

此外，在本次電話會議中，我們將討論某些非 GAAP 財務指標。另請參閱我們的收益新聞稿，其中包含我們的非 GAAP 措施與可比較的 GAAP 措施的合併。

Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. It is now my pleasure to introduce our President, Mr. He. Jeff, please go ahead.

最後請注意，除非另有說明，本次電話會議中提及的所有數字均以人民幣為單位。現在我很高興地介紹我們的總裁何先生。傑夫，請繼續。

Okay. Thank you, Caroline, and thank you all for joining us. During the first quarter of 2022, Dada Group once again achieved a stronger growth with significantly improving our operational efficiency.

好的。謝謝 Caroline，也謝謝大家加入我們。 2022年第一季度，達達集團再次實現強勁增長，運營效率顯著提升。

Our total net revenues increased by 32% and adjusted net margin improved by [over] 17 percentage points year-over-year. In addition, we achieved a positive free cash flow in the second half of 2022.

我們的總淨收入增長了 32%，調整後的淨利潤率同比提高 [超過] 17 個百分點。此外，我們在 2022 年下半年實現了正自由現金流。

I will first provide an update on our deepen cooperation with JD.com, after which I will take you through the operational highlights from our 2 platforms. Beck will then discuss the financial results in detail.

我先介紹一下我們與京東深化合作的最新情況，然後再帶大家了解一下我們兩個平台的運營亮點。貝克隨後將詳細討論財務結果。

We continue to work closely with JD.com on multiple fronts. During the first quarter, GMV of Shop Now or Xiaoshigou, it's a unified brand for all on-demand retail services within JD ecosystem, increased by more than 80% year-over-year. In particular, GMV from the Nearby or Fujin tab increased by more than 300% year-over-year. Thanks to the significant increased exposure of its entry point. (inaudible) the improved the click-through rate driven by the upgrade of display name to city names and the freeze tab function that keeps the tab freezed when users go down to home page.

我們繼續在多個方面與京東密切合作。第一季度，京東生態系統內所有按需零售服務的統一品牌Shop Now或小食購的GMV同比增長超過80%。特別是附近或富錦標籤的 GMV 同比增長超過 300%。由於其切入點的曝光率顯著增加。 （聽不清）通過將顯示名稱升級為城市名稱以及在用戶進入主頁時保持選項卡凍結的凍結選項卡功能，提高了點擊率。

On top of the search results exposure and the nearby tab, we continue to roll out RBS features in more than -- more touch points within the JD A-P-P. During this quarter, we newly implemented the RBS feature among the commendation fees on JD homepage which has led to incremental traffic for Shop Now.

除了搜索結果曝光和附近的選項卡之外，我們繼續在 JD A-P-P 中的更多接觸點推出 RBS 功能。本季度，我們在京東首頁的推薦費中新增了RBS功能，帶動了Shop Now的流量增長。

Turning now to the operational highlights for our 2 platforms. Starting with JDDJ, the leading local on-demand retail platform in China. In the fourth quarter, JDDJ maintained robust GM growth and (inaudible) and outpaced the industry. Even then committed to leading the development of the on-demanded retail industry, where the retailer and the brand empowerment and the technology innovation in digital transformation.

現在轉向我們兩個平台的運營亮點。從中國領先的本地按需零售平台京東到家開始。在第四季度，JDDJ 保持了強勁的 GM 增長和（聽不清）並超過了行業。即便那時致力於引領按需零售行業的發展，其中零售商和品牌賦能以及數字化轉型中的技術創新。

Let's start with our efforts in empowering retailers. In 2022, there were more than 220,000 active retailer stores on JDDJ, up more than 50% year-over-year. This maintain partners from the essential part of JDDJ ecosystem. And the in turn JDDJ provides them respected support to grow online sales.

讓我們從賦能零售商的努力開始吧。 2022年，京東到家活躍零售門店超過22萬家，同比增長超過50%。這從京東到家生態系統的重要部分維護合作夥伴。反過來，京東到家為他們提供了受人尊敬的支持，以增加在線銷售額。

In the first quarter, JDDJ continued to expand the and different cooperation with retailers across multiple countries including supermarkets, consumer electronics and home appliance, mom-and-baby (inaudible) in the supermarket exactly, we listen (inaudible) with more top supermarket trends such as HotMaxx (inaudible) and now have established the partnership with 90 out of the top 100 supermarket chains in China.

第一季度，京東到家繼續擴大與多個國家零售商的不同合作，包括超市、消費電子和家電、超市中的母嬰（聽不清），我們聽（聽不清）更多頂級超市趨勢例如 HotMaxx（聽不清），現在已經與中國 100 強連鎖超市中的 90 家建立了合作夥伴關係。

We also onboarded a more regional campaigns like (inaudible) to further emit our local offerings. From the end of December to the end of January, JDDJ launched the Chinese New Year shopping festival to boost the sales for supermarket chains. Thanks to our SKU strategy of support merchant holiday grew such as (inaudible) and gift box GMV of supermarkets increased by more than 50 year-over-year.

我們還開展了更多區域性活動，例如（聽不清）以進一步發布我們的本地產品。 12月底至1月底，京東到家推出春節購物節，為連鎖超市提振銷售。由於我們的 SKU 策略支持商家假期增長，例如（聽不清）和超市的禮品盒 GMV 同比增長超過 50。

During the 3-week period leading to Chinese New Year event. In addition to large supermarket trends, we have also continued to engage in the (inaudible) variety and the increased store density through cooperation with convenience the store chains. Recently, we signed up Yonghui and other leading convenient stores.

在農曆新年活動前的 3 週內。除了大型超市趨勢，我們還通過與便利連鎖店的合作，繼續從事（聽不清）品種和增加商店密度。近期，我們簽約了永輝等龍頭便利店。

Moving to the fresh product category. We recently launched dedicated entry point of JD Grocery to further improve consumers' (inaudible) share for fresh products on JDDJ. In the first quarter, (inaudible) our fresh products in supermarket orders increased remarkably but GMV of fresh product stores also see significant growth.

轉向新鮮產品類別。我們最近推出了 JD Grocery 的專用入口點，以進一步提高消費者（聽不清）在 JDDJ 上購買新鮮產品的份額。第一季度，（聽不清）我們的生鮮產品在超市訂單中顯著增加，但生鮮產品商店的 GMV 也有顯著增長。

For example, GMV of online operators for fruit and vegetable markets, like (inaudible) and (inaudible) increased by several tons year-on-year. We also made further progress in the consumer electronics and home appliance category. In the first quarter, the smartphone category maintained the rapid growth driven by Double 11 shopping festival. While the home appliances (inaudible) also made further (inaudible). As we further depend the cooperation with partners such as Xiaomi Home Appliance, GMV of home appliance in the first quarter increased by more than 400 year-on-year.

例如，水果和蔬菜市場的在線運營商的 GMV，如（聽不清）和（聽不清）同比增長了數噸。我們在消費電子和家電領域也取得了進一步的進展。一季度，智能手機品類在雙十一的帶動下保持高速增長。而家用電器（聽不清）也進一步（聽不清）。隨著我們進一步依賴與小米家電等合作夥伴的合作，一季度家電GMV同比增長400多。

In the mom and the baby category, we continue to work closely with top 10 retailers and engage with stores to jointly assess their private domain users. GMV of mom and baby stores saw accelerated growth of more than 300% year-on-year in the fourth quarter.

在母嬰品類方面，我們繼續與Top 10 零售商緊密合作，並與商店接洽，共同評估他們的私域用戶。第四季度母嬰店GMV同比加速增長超300%。

In the (inaudible) category. We depend our partnerships with leading distributors such as (inaudible) and (inaudible) new corporation with region distributors such as (inaudible) with the chance to further optimize the supply of key SKUs such as multi products. As a result, GMV in the first quarter more than tripled year-on-year.

在（聽不清）類別中。我們依靠我們與領先分銷商的合作夥伴關係，例如（聽不清）和（聽不清）新公司與區域分銷商（例如（聽不清））有機會進一步優化多產品等關鍵 SKU 的供應。結果，第一季度的 GMV 同比增長了兩倍多。

Turning to JDDJ's efforts to empower brands. In 2022, more than 280 brands partnered with JDDJ in online marketing and an increase of more than 30 year-over-year. Our leading position in on-demanded retail and (inaudible) in ability in auto digital market make us the most trusted auto platform for brands.

談及京東到家為品牌賦能的努力。 2022年，超過280個品牌與京東到家進行線上營銷合作，同比增長30多個。我們在按需零售方面的領先地位和（聽不清）在汽車數字市場的能力使我們成為品牌最值得信賴的汽車平台。

In the first quarter, the year-on-year growth of our online marketing services exceeded 70%, driven by further broaden and dependent brand partnerships. We continue to work closely with leading FMCG brands. And we have listened, we signed our new partners with -- such as (inaudible), a brand (inaudible), and liquor brand (inaudible). Together with our brand partners, we keep innovating new market campaigns to attract and convert the consumers.

第一季度，在進一步擴大和依賴品牌合作夥伴關係的推動下，我們的在線營銷服務同比增長超過 70%。我們繼續與領先的快速消費品品牌密切合作。我們聽取了意見，我們與新合作夥伴簽約——例如（聽不清）、一個品牌（聽不清）和酒類品牌（聽不清）。我們與我們的品牌合作夥伴一起，不斷創新新的市場活動來吸引和轉化消費者。

During the Double 11 shopping festival in 2022 JDDJ and JD.com, we co-launched the first intra-city marketing team on JD's dropdown page, (inaudible) who is managing our intra-city and retail, we intend to boost 10 plans, including (inaudible) and (inaudible) participated in the event.

2022年雙十一期間，京東家和京東在京東下拉頁面聯合推出了首個同城營銷團隊，（聽不清）負責同城和零售，我們打算推進10個計劃，包括（聽不清）和（聽不清）參加了此次活動。

And the total GMV of participating brands on the campaign day increased by 170% over-year. Next, I will touch on our technology innovation in driving the digital transformation for both the retailers and the brands.

活動當天參與品牌的總GMV同比增長170%。接下來，我將談談我們在推動零售商和品牌數字化轉型方面的技術創新。

Firstly, on Haibo our omnichannel outdoor operating system for retailers. At the end of December, our Haibo system has been deployed in more than 8,200 retailer chain stores. While we continued penetrate the supermarkets and the stores, we also have recently successfully spending the Haibo services to merchants in mom and the baby and the (inaudible) driven by continuous expansion in merchant base. GMV product set by Haibo system more than doubled on a year-on-year in 2022.

首先，在海博上，我們為零售商提供的全渠道戶外運營系統。截至 12 月底，我們的海博系統已在 8,200 多家零售連鎖店部署。在我們繼續滲透超市和商店的同時，我們最近也成功地將海博服務用於母嬰和（聽不清）的商戶，這是由不斷擴大的商戶基礎推動的。 2022年，海博系統GMV產品同比增長超過一倍。

In the first quarter, we continued to upgrade Haibo's features to have the merchants improve outdoor operating efficiency. For example, we newly introduced an intelligent order dispatching function in (inaudible) model. This new function enables merchants to engage the multiple delivery services provides to reduce their delivery cost and enhance the (inaudible) order pickup by riders. Merchants too have tested this upgraded model so 75% improvement in operating efficiency, 6% enhancement in order taking time and a 3% savings in deal costs.

一季度，我們繼續升級海博功能，讓商戶提升戶外運營效率。例如，我們在（聽不清）模型中新引入了智能訂單調度功能。這項新功能使商家能夠參與提供的多種送貨服務，以降低他們的送貨成本並提高騎手的（聽不清）訂單取件。商家也測試了這種升級後的模式，運營效率提高了 75%，接單時間縮短了 6%，交易成本節省了 3%。

Moving on to our digitized use store picking services for the retailers, Dada Picking. We continue to provide a steady support to leading supermarkets, including Walmart, (inaudible), and (inaudible) and the total number of orders fulfilled by Dada Picking more than doubled year-on-year in the fourth quarter.

繼續使用我們為零售商提供的數字化商店揀貨服務 Dada Picking。我們繼續為包括沃爾瑪在內的領先超市提供穩定的支持，（聽不清）和（聽不清）達達揀選在第四季度完成的訂單總數同比增長了一倍多。

Meanwhile, we have been further improving our digital capabilities. We aim to provide merchants with a comprehensive set of digital picking management tools, spending functions, which include the picking, staff recruitment, onboarding and management. Picking products management, data aggregation and analysis and the sales quality monitoring. We also made progress in providing digital insights and solutions to brand. (inaudible) reader system enables brand to digitize channel inventories management. While cloud store project helps brands optimize customer value.

同時，我們一直在進一步提升我們的數字能力。我們旨在為商戶提供一整套數字化揀選管理工具、消費功能，包括揀選、人員招聘、入職和管理。揀貨管理、數據匯總分析、銷售質量監控。我們在為品牌提供數字洞察力和解決方案方面也取得了進展。 （聽不清）閱讀器系統使品牌能夠數字化渠道庫存管理。而云店項目則幫助品牌優化客戶價值。

Based on (inaudible) great level sales data and processing management tool, JDDJ launched a perfect store solution to help brands amplify online presence and optimize O2O supply, rolling a pilot program in the third quarter. We partnered with several leading food brands in December to roll out the perfect store solution nation wide. Our partner brands adopting the solutions for a more than 5 percentage point increase in the online ability later of the key SKUs which translated into incremental sales of more than 10 percentage points.

基於（聽不清）高水平的銷售數據和處理管理工具，京東到家推出了完美的門店解決方案，以幫助品牌擴大在線影響力並優化 O2O 供應，並在第三季度推出了試點計劃。我們在 12 月與幾個領先的食品品牌合作，在全國范圍內推出完美的商店解決方案。我們的合作夥伴品牌採用該解決方案後，關鍵 SKU 的在線能力提高了 5 個百分點以上，轉化為超過 10 個百分點的增量銷售額。

In addition, JDDJ launched the cloud store project to adjust brands pain point of brand user operations. (inaudible) WeChat and our on-demanded retail platform the project enables brands to improve the conversion efficiency of off-line promoters and maximize customer value. Pilot branded in the cloud store projects. So the average number of orders was facilitated by each promoter increased by 230% and 7-day customer retention rate increased by 150%.

此外，京東到家推出雲店項目，調整品牌用戶運營痛點。 （聽不清）微信和我們的點播零售平台該項目使品牌能夠提高線下促銷員的轉化效率並最大化客戶價值。在雲商店項目中試點品牌化。因此，每個促銷員促成的平均訂單數增加了 230%，7 天客戶保留率增加了 150%。

Moving on to Dada Now. The leading local on-demand delivery platform in China. In 2022, the new active riders on Dada Now platform reached 1 million, up more than 40% year-over-year, thanks to increasing order volume and our flexible cloud sourcing network.

現在轉到達達。中國領先的本地按需配送平台。 2022年，得益於訂單量的增加和我們靈活的雲採購網絡，達達平台的新增活躍騎手達到100萬，同比增長超過40%。

We have provided a meaningful flexible employment opportunities for a wide range of workers. In the first quarter, Dada loss order volume and revenue both maintained the rapid growth while operating efficiency continued to improve.

我們為廣大勞動者提供了有意義的靈活就業機會。一季度，達達虧本訂單量和收入均保持較快增長，經營效率持續提升。

In terms of (inaudible) or merchants business in the first quarter. The revenue of on demand delivery services to (inaudible) merchants increased by more than 40% year-over-year. Meanwhile, we continued to improve delivery efficiency and customer experience through measures such as optimizing, dispatching (inaudible).

就第一季度的（聽不清）或商家業務而言。面向（聽不清）商戶的按需配送服務收入同比增長超過 40%。同時，我們通過優化、調度（聽不清）等措施，持續提升配送效率和客戶體驗。

In the supermarket capital, we continue to consolidate our leading position with revenue increasing by more than 40% year-over-year. During the quarter, while we worked closely with partners such as Walmart, Sam's Club, Yonghui, and the (inaudible).

在商超之都，我們繼續鞏固領先地位，收入同比增長超過40%。在本季度，我們與沃爾瑪、山姆會員店、永輝和（聽不清）等合作夥伴密切合作。

We also continued to deepen cooperation with other supermarkets retailers such as CR and (inaudible). In the restaurant and the beverage category, our revenue increased by more than 50% year-on-year. We set up new partnerships with restaurant (inaudible) such as Burger King we also strengthened our cooperation with beverage brands such as Luckin Coffee and (inaudible). Restaurant and Beverage increased by more than 150% year-on-year during the quarter.

我們還繼續深化與華潤和（聽不清）等其他超市零售商的合作。在餐廳和飲料類別中，我們的收入同比增長超過 50%。我們與漢堡王等餐廳（聽不清）建立了新的合作夥伴關係，我們還加強了與 Luckin Coffee 和（聽不清）等飲料品牌的合作。餐廳和飲料在本季度同比增長超過 150%。

In addition, in early December, we officially became 1 of the first on-demand delivery partners for the (inaudible) in local (inaudible), offering the level of fulfillment services to further deliver merchants on the lean platform. Currently, the (inaudible) in food delivery service is being imparted in Beijing, Shanghai and Chengdu. Leverage Dada, now sense and nationwide coverage.

此外，在 12 月初，我們正式成為本地（聽不清）（聽不清）的首批按需交付合作夥伴之一，提供履行服務水平，以進一步在精益平台上交付商家。目前，北京、上海和成都正在推廣（聽不清）送餐服務。利用達達，現在感覺和全國覆蓋。

Rider dispatching flexibility and high fulfillment efficiency. We believe our care business will serve to in well, when is full deliver services scares up. In our SME and C2C business, we continued to expand our right rider network to serve more SMEs while our C2C business sale searching and service needs of individual consumers during the pandemic.

騎手調度靈活，履約效率高。我們相信我們的護理業務將服務良好，當全面提供服務嚇壞了。在我們的中小企業和C2C業務中，我們繼續擴大我們的右手網絡以服務更多的中小企業，同時我們的C2C業務在大流行期間搜索和服務個人消費者的需求。

As a result, orders fulfilled by our SME and the C2C business increased by more than 40% year-on-year in the first quarter. Meanwhile, driven by optimization of pricing and incentive [Magnetism]. We saw an accelerated improvement in UE. For last-mile services, we continue to leverage our flexible outsourcing network to provide a steady support to to JD Logistics by complementing this enhanced (inaudible), especially during the shopping festival and the period when COVID case spiked.

因此，我們的中小企業和 C2C 業務在第一季度完成的訂單同比增長超過 40%。同時，在定價和激勵優化 [Magnetism] 的驅動下。我們看到了 UE 的加速改進。對於最後一英里服務，我們繼續利用我們靈活的外包網絡通過補充這一增強（聽不清）為京東物流提供穩定的支持，特別是在購物節和 COVID 病例激增的時期。

Lastly, an update on Dada Now's autonomous deliver services. At the end of January, our autonomous delivery open platform had fulfilled more than 80,000 on-demand orders for supermarkets through cooperation with autonomous vehicle manufacturers.

最後，更新 Dada Now 的自主配送服務。截至1月底，自主配送開放平台與自動駕駛汽車廠商合作完成超8萬單商超訂單。

This has made Dada Now the largest autonomous delivery platform for supermarkets in China.

這使得達達成為中國最大的超市自主配送平台。

Moving on to ESG. We're continuously improving ESG practice and disclosures. Our ratings by leading third-party agencies have been notably improved. In November, MSCI upgraded our ESG rating from BB to BBB, on the strength of higher scores across all 3 dimensions of environment, social and governance. Also in November, we improved our ESG score in S&P Corporate Sustainability Assessment, CSA, to 32, placing us among the top 11% in the global retailing sector. There is still significant room for improvement, and we will further integrate ESG philosophy into our daily operations to enhance our ESG practice.

轉向 ESG。我們不斷改進 ESG 實踐和披露。領先的第三方機構對我們的評級顯著提高。 11 月，MSCI 將我們的 ESG 評級從 BB 上調至 BBB，這是因為我們在環境、社會和治理的所有 3 個維度上都獲得了更高的分數。同樣在 11 月，我們在標準普爾企業可持續發展評估 (CSA) 中的 ESG 得分提高到 32，使我們躋身全球零售業前 11% 之列。我們仍有很大的改進空間，我們將進一步將 ESG 理念融入我們的日常運營，以加強我們的 ESG 實踐。

That covers our operational updates for the 2 platforms. To wrap up, we continued to execute well amid the macro challenges in the past year. Looking ahead, as on-demand penetration steadily progresses in every single local retail category, we believe our track record of enabling retailers and the brands as well as the synergies unleashed from our deepened collaboration with JD.com will position us well to capture opportunities in the coming years.

這涵蓋了我們對這兩個平台的操作更新。總而言之，我們在過去一年的宏觀挑戰中繼續表現出色。展望未來，隨著按需滲透在每個本地零售類別中穩步推進，我們相信我們在支持零售商和品牌方面的往績以及我們與京東深化合作所釋放的協同效應將使我們能夠很好地抓住機會未來幾年。

I will now pass the call to Beck to go our financials. Thank you.

我現在將把電話轉給貝克，讓他了解我們的財務狀況。謝謝。

Thanks, Jeff. Before we go over the numbers, just a few housekeeping items in advance. We believe year-over-year comparisons are the most useful way to judge our performance. Therefore, all percentage changes I'm going to give will be on a year-over-year basis, and all figures are in renminbi unless otherwise noted.

謝謝，傑夫。在我們查看數字之前，先了解一些內務事項。我們相信逐年比較是判斷我們業績的最有用方式。因此，我要給出的所有百分比變化都是按年計算的，除非另有說明，所有數字均以人民幣為單位。

So I will start with Q4 numbers first. Total net revenues in the fourth quarter increased by 32% to CNY 2.7 billion. Net revenues from Dada Now increased by 23% to CNY 883 million, mainly driven by the increases in order volume of intra-city delivery service to chain merchants.

所以我會先從第四季度的數字開始。第四季度總淨收入增長 32% 至 27 億元人民幣。達達的淨收入增長 23% 至人民幣 8.83 億元，主要受連鎖商戶同城配送服務訂單量增加的推動。

Net revenues from JDDJ increased by 37% to CNY 1.8 billion, mainly due to the increase in GMV, which was driven by increases in the number of active consumers and average order value. The increase in online marketing services revenue also contributed to the revenue growth of JDDJ.

京東到家的淨收入增長 37% 至 18 億元人民幣，這主要是由於活躍消費者數量和平均訂單價值的增加推動了 GMV 的增長。在線營銷服務收入的增加也促進了京東到家的收入增長。

Next, moving over to the expenses side. The operations and supporting costs were CNY 1.6 billion. The increase was primarily due to an increase in rider cost as a result of increasing order volume for intra-city delivery services provided to various chain merchants on the Dada Now platform and the retailers on the JDDJ platform.

接下來，轉到費用方面。運營及配套成本為16億元人民幣。增加主要是由於達達快達平台上向各連鎖商戶和京東到家平台上的零售商提供的同城配送服務訂單量增加導致騎手成本增加。

Selling and marketing expenses were CNY 1.3 billion. The Increase was primarily due to the growing absolute dollar amount of incentives to JDDJ consumers, an increase in advertising and marketing expenses to attract new consumers to JDDJ platform, and the amortization of the business cooperation agreement arising from share subscription transaction with JD.com back in February 2022.

營銷費用為人民幣 13 億元。增加主要是由於對京東到家消費者的獎勵絕對金額增加、為吸引新消費者到京東到家平台而增加的廣告和營銷費用以及與京東的股份認購交易產生的業務合作協議的攤銷2022 年 2 月。

G&A expenses remained flat at CNY 101 million, mainly attributable to our expense control measures. R&D expenses decreased to CNY 126 million, mainly due to lower R&D personnel costs as we enhance the operating efficiencies.

G&A 費用保持在 1.01 億元人民幣，這主要歸因於我們的費用控制措施。研發費用下降至人民幣1.26億元，主要是由於我們提高了運營效率，降低了研發人員成本。

Non-GAAP net loss attributable to ordinary shareholders of Dada was CNY 179 million. Net loss -- non-GAAP net loss margin was 6.7%, improving by more than 17 percentage points year-over-year and 5 percentage points quarter-over-quarter. In addition, as Jeff mentioned in the beginning, driven by the significantly narrowed loss and efficient working capital management, we are pleased to report a positive free cash flow in the second half of 2022.

歸屬於達達普通股股東的非美國通用會計準則淨虧損為人民幣 1.79 億元。淨虧損——非 GAAP 淨虧損率為 6.7%，同比提高 17 個百分點以上，環比提高 5 個百分點。此外，正如 Jeff 一開始提到的，在虧損大幅收窄和營運資本管理高效的推動下，我們很高興地報告 2022 年下半年的自由現金流為正。

As of December 31, 2022, the company had CNY 4.4 billion in cash, cash equivalents, restricted cash and short-term investments. Pursuant to our USD 70 million share repurchase program announced in March 2022, as of December 31, 2022, we had repurchased approximately USD 60 million of ADSs under this repurchase program.

截至2022年12月31日，公司持有現金、現金等價物、受限制現金和短期投資44億元人民幣。根據我們於 2022 年 3 月宣布的 7000 萬美元股票回購計劃，截至 2022 年 12 月 31 日，我們已根據該回購計劃回購了約 6000 萬美元的 ADS。

I will now quickly run through a few key full year 2022 financial results. Further details can be found in our earnings release. The total net revenues was CNY 9.4 billion. Aligning the revenue recognition method of Dada Now last-mile delivery services to a comparable net basis, the pro forma revenue growth rate was 49%.

我現在將快速瀏覽一些關鍵的 2022 年全年財務業績。更多詳細信息可以在我們的收益發布中找到。總淨收入為人民幣 94 億元。將達達最後一公里配送服務的收入確認方法調整為可比淨額，預計收入增長率為49%。

Operations and supporting costs were CNY 5.7 billion compared with CNY 5.1 billion in 2021. Selling and marketing expenses were CNY 4.7 billion compared with CNY 3.4 billion in 2021. G&A expenses were CNY 409 million compared with CNY 400 million in 2021. R&D expenses were CNY 631 million compared with CNY 574 million in 2021. Non-GAAP net loss attributable to ordinary shareholders of Dada was CNY 1.3 billion compared with at CNY 2.1 billion in 2021.

運營和支持成本為人民幣 57 億元，而 2021 年為人民幣 51 億元。銷售和營銷費用為人民幣 47 億元，而 2021 年為人民幣 34 億元。一般及行政費用為人民幣 4.09 億元，而 2021 年為人民幣 4 億元。研發費用為人民幣6.31 億元，而 2021 年為 5.74 億元人民幣。歸屬於達達普通股股東的非美國通用會計準則淨虧損為 13 億元人民幣，而 2021 年為 21 億元人民幣。

In terms of outlook, for the first quarter of 2023, we expect total net revenues to be between CNY 2.57 billion to CNY 2.77 billion, representing a year-over-year growth rate of 27% to 37%. Heading into 2023, we are confident in further improving profitability while sustaining revenue growth momentum.

在展望方面，我們預計 2023 年第一季度總淨收入將在 25.7 億元人民幣至 27.7 億元人民幣之間，同比增長率為 27% 至 37%。進入 2023 年，我們有信心在保持收入增長勢頭的同時進一步提高盈利能力。

So this concludes our prepared remarks. Operator, we are now ready to begin the Q&A session. Thank you.

我們準備好的發言到此結束。接線員，我們現在準備開始問答環節。謝謝。

(Operator Instructions) Your first question comes from Ronald Keung with Goldman Sachs.

（操作員說明）你的第一個問題來自高盛的 Ronald Keung。

(foreign language) I have 2 questions. First, just want to hear about the outlook for JDDJ, some of the strategies for this year. Given pretty healthy growth that you've guided, how should we think about the profit side on the unit economics side? And are we on track to -- for profit turnaround for the business this year?

（外語）我有兩個問題。首先，只想听聽 JDDJ 的前景，今年的一些策略。鑑於您所指導的相當健康的增長，我們應該如何考慮單位經濟方面的利潤方面？我們是否有望實現今年業務的盈利轉機？

And my second question would be on the food delivery and announcements on your cooperation with Douyin. And just if this business grows, do we have sufficient rider capacity? How are we thinking about the core operation there and the opportunities?

我的第二個問題是關於您與抖音合作的外賣和公告。如果這項業務增長，我們是否有足夠的載客量？我們如何看待那裡的核心業務和機遇？

(foreign language) Caroline, please help me translate.

（外語）卡羅琳，請幫我翻譯一下。

[Interpreted] In terms of business outlook for this year, we are cautiously optimistic following extreme situation. And we expect that the consumer confidence and economic activities to gradually recover in the first half of this year. And in that case, we expect JDDJ revenue to gradually accelerate quarter-by-quarter and reach about 40% in the second half of this year.

【解讀】對於今年的經營前景，我們在極端情況下持謹慎樂觀態度。我們預計消費者信心和經濟活動將在今年上半年逐步恢復。並且在這種情況下，我們預計京東到家的收入將逐季加速，並在今年下半年達到 40% 左右。

(foreign language) Yes, please, Caroline, you translate.

（外語）是的，卡羅琳，你來翻譯。

[Interpreted] So now I'd like to share some color on the impact on JDDJ since the reopening. During the pandemic, due to mobility restrictions and limited choices, consumers preferred on-demand shopping. Since the reopening, with more shopping options available to consumers, off-line spending for goods and services have somewhat recovered.

[解讀]那麼現在我想分享一些關於重新開放以來對JDDJ的影響的顏色。疫情期間，由於行動不便和選擇有限，消費者更喜歡按需購物。自重新開放以來，隨著消費者有更多的購物選擇，商品和服務的線下支出有所恢復。

(foreign language) Yes, please.

（外語）是的，請。

[Interpreted] That said, based on our experience of several rounds of resurgence in the last 3 years, users who have formed shopping habits during the outbreak have maintained a healthy retention rate even as the COVID situation abated. Since the reopening late last year, the retention of our users has not significantly changed.

[解讀]也就是說，根據我們過去3年多輪迴潮的經驗，在疫情期間形成購物習慣的用戶即使在COVID形勢有所緩解的情況下也保持著健康的留存率。自去年底重新開放以來，我們的用戶保留率沒有顯著變化。

(foreign language)

（外語）

[Interpreted] The reason behind that is consumers have become used this year to shop the convenience of on-demand shopping and are increasingly demanding faster delivery of all product categories. Therefore, they remained on our platform even as other shopping channels now become available. So we feel confident by maintaining a long-term growth rate that significantly outpaces the industry.

[解讀]這背後的原因是消費者今年已經習慣了按需購物的便利，並且越來越要求所有產品類別的快速交付。因此，即使現在可以使用其他購物渠道，它們仍保留在我們的平台上。因此，我們對保持遠超行業的長期增長率充滿信心。

(foreign language)

（外語）

(foreign language)

（外語）

(foreign language) Yes, please.

（外語）是的，請。

[Interpreted] So to address your second question on our cooperation with Douyin, in early December, we officially became one of the first on-demand delivery partners for Douyin local life services, offering fulfillment services to food delivery merchants on Douyin's platform. The fact that we were among the first on-demand delivery partners of Douyin speaks of its recognition of our brand and service quality.

[解讀]那麼關於我們與抖音合作的第二個問題，12月初，我們正式成為抖音本地生活服務的首批按需配送合作夥伴之一，為抖音平台上的外賣商家提供履約服務。事實上，我們是抖音的首批按需交付合作夥伴之一，這說明了抖音對我們品牌和服務質量的認可。

(foreign language)

（外語）

[Interpreted] And specifically, as one of Dada Now's key accounts, Douyin will aggregate all of its food delivery orders on the platform and distribute them to the delivery partners. Once we receive the orders, we'll dispatch riders to fulfill them, delivering a convenient premium on-demand [catering experience for consumers.

[解讀]具體來說，抖音作為達達的大客戶之一，將在平台上匯總其所有的外賣訂單，並將其分發給外賣合作夥伴。一旦我們收到訂單，我們將派遣騎手來完成它們，為消費者提供方便的高級按需[餐飲體驗。

(foreign language)

（外語）

[Interpreted] In terms of contribution, if Douyin's food delivery service experience has significant growth, there will be meaningful incremental revenue for Dada Now in the coming years.

【解讀】在貢獻方面，如果抖音的外賣服務體驗有顯著增長，達達未來幾年將有可觀的增量收入。

(foreign language)

（外語）

[Interpreted] Currently, Douyin's food delivery service is only being piloted in Beijing, Shanghai and Chengdu with limited order volume.

【解讀】目前，抖音外賣僅在北京、上海、成都試點，訂單量有限。

(foreign language)

（外語）

[Interpreted] Leveraging back on our strength of national -- nationwide coverage, rider dispatching flexibility and high fulfillment efficiency, we believe our KA business will gain significant incremental revenue when Douyin's food delivery service scales up. That said, we have not baked in any contribution from our cooperation with Douyin in our financial guidance.

[解讀] 憑藉我們在全國范圍內的優勢——全國覆蓋、騎手調度靈活性和高履行效率，我們相信，隨著抖音的外賣服務規模擴大，我們的 KA 業務將獲得顯著的增量收入。也就是說，我們沒有在我們的財務指導中考慮到我們與抖音合作的任何貢獻。

(foreign language)

（外語）

[Interpreted] So in terms of unit economics, as order volume grows, we expect Douyin orders to be quickly on par with other KA orders.

[解讀]所以在單位經濟方面，隨著訂單量的增長，我們預計抖音訂單將很快與其他KA訂單持平。

(foreign language)

（外語）

[Interpreted] In terms of our market share on the Douyin platform, apart from us, Douyin food delivery is partnering with SF intra-city and Shansong. We're confident about our long-term market share on Douyin's food delivery platform given our significant competitive advantages.

[解讀]從我們在抖音平台的市場份額來看，除了我們，抖音外賣還與順豐同城和山送合作。鑑於我們顯著的競爭優勢，我們對我們在抖音外賣平台上的長期市場份額充滿信心。

(foreign language)

（外語）

[Interpreted] Compared with Shansong intra-city, we enjoy more stable rider supply and cost advantage. Since we serve a broad range of customers, including supermarkets, restaurants and pharmacies, our orders are spread more evenly throughout the day, whereas the majority of SF's orders are food delivery.

【解讀】與山松同城相比，我們享有更穩定的騎手供應和成本優勢。由於我們服務的客戶範圍廣泛，包括超市、餐廳和藥店，我們的訂單在一天中分佈得更均勻，而順豐的大部分訂單都是外賣。

(foreign language)

（外語）

[Interpreted] And from a cost perspective, we are also more competitive, thanks to our flexible cloud sourcing model and higher fulfillment efficiency as a result of more even order distribution.

[解讀]而且從成本的角度來看，我們也更有競爭力，這要歸功於我們靈活的雲採購模型和更高的履行效率，因為訂單分配更均勻。

(foreign language)

（外語）

[Interpreted] And compared with Shansong, we offer much broader city coverage and lower unit cost. Shansong's presence is mostly in Tier 1 cities, while our service is available in over 2,800 cities and counties across the country. We can fully support Douyin's delivery needs as we [launch our food delivery services in more regions. In addition, Shansong's delivery model is point-to-point delivery. The riders typically pick up and deliver only one order at a time. Due to the high cost, the service does not cater to the needs of most food delivery merchants.

[解讀]與山松相比，我們提供更廣泛的城市覆蓋和更低的單位成本。山鬆的佈局主要在一線城市，而我們的服務覆蓋全國2800多個城市和縣。隨著我們[在更多地區推出我們的外賣服務，我們可以全力支持抖音的外賣需求。另外，山鬆的配送模式是點對點配送。騎手通常一次只取貨和送貨。由於成本高，該服務不能滿足大多數外賣商家的需求。

Okay. Beck, (foreign language).

好的。貝克，（外語）。

Yes. So Ronald, so about the first question, so let me just share like about the UE and the profit turnaround. So yes, we are still confident to maintain our outlook to break even in mid of the year for the company level and also for the Douyin cooperation. So we think the rider supply is sufficient. As we can see right now back after like the Chinese New Year in March, going into March, our active daily riders still increased by 40% to 50% on a year-over-year basis for the intra-city delivery businesses. So we don't think the rider supply is [hedging] for us this year.

是的。那麼羅納德，關於第一個問題，讓我分享一下關於 UE 和利潤轉變的信息。所以是的，我們仍然有信心在年中保持公司層面和抖音合作收支平衡的前景。所以我們認為騎手供應充足。正如我們現在看到的那樣，就像 3 月份的農曆新年一樣，進入 3 月份，我們同城配送業務的每日活躍騎手仍同比增長 40% 至 50%。因此，我們認為今年的車手供應不會對我們造成[對沖]。

Your next question comes from Thomas Chong with Jefferies.

你的下一個問題來自 Jefferies 的 Thomas Chong。

(foreign language) My first question is regarding the cooperation with JD. Given the success in 2022, how should we think about the KPI working with JD for this year?

（外語）我的第一個問題是關於與京東的合作。鑑於2022年的成功，我們應該如何看待今年與京東合作的KPI？

And my second question is on JDDJ. Can you comment about the GMV mix for supermarkets and other categories? And how should we think about the trend for the AOV going forward?

我的第二個問題是關於 JDDJ。您能評論一下超市和其他品類的 GMV 組合嗎？我們應該如何看待 AOV 的未來趨勢？

(foreign language)

（外語）

[Interpreted] Thank you for your question. Core KPI for this year remains GMV revenue growth and net income.

[已翻譯] 謝謝你的提問。今年的核心 KPI 仍然是 GMV 收入增長和淨收入。

(foreign language)

（外語）

[Interpreted] So our priorities are twofold. The first is helping JD acquire new customers in the off-line channel.

[解釋] 所以我們的優先事項是雙重的。首先是幫助京東在線下渠道獲取新客戶。

(foreign language)

（外語）

[Interpreted] And meanwhile, we aim to boost our exposure on JD app to penetrate more users in JD's ecosystem.

[解讀]與此同時，我們的目標是提高我們在京東應用程序上的曝光度，以滲透京東生態系統中的更多用戶。

Okay. So Thomas, for the second question about some numbers. So for the category mix. So in Q4, our Market categories account for 53% of the total, while our consumer electronics and appliances account for 43% of the total GMV, while the remaining categories account for like the 6% of the total GMV.

好的。 Thomas，關於一些數字的第二個問題。所以對於類別組合。所以在第四季度，我們的市場類別佔總數的 53%，而我們的消費電子和電器佔總 GMV 的 43%，而其餘類別佔總 GMV 的 6%。

So market and consumer electronic appliances will be still be the major categories in our GMV in Q4. And in terms of the average order value. So for the platform wise, the average order value is further increased to RMB 235, while the supermarket, the average order value has also increased to RMB 165.

因此，市場和消費電子產品仍將是我們第四季度 GMV 的主要類別。就平均訂單價值而言。所以在平台方面，平均訂單金額進一步提升至235元，而超市方面，平均訂單金額也提升至165元。

So for the trend in 2023, we're now forecasting that the AOV of the platform will still go up very robustly, which was driven by like 2 reasons. One is -- number one is, of course, the mix contribution from those large ticket size products. The second is, of course, the average order value of supermarket categories is also going up on a year-over-year basis.

因此，對於 2023 年的趨勢，我們現在預測該平台的 AOV 仍將非常強勁地上升，這是由兩個原因驅動的。一是——當然，第一是那些大票產品的混合貢獻。第二當然是超市品類的平均訂單價值也在同比上升。

So just let's -- for example, for the Chinese New Year event and the campaign in January and February. So basically, our average order value for supermarket, we're also growing very much compared to the same events last year. So that's for the second question.

因此，讓我們——例如，為中國新年活動和 1 月和 2 月的活動。所以基本上，我們對超市的平均訂單價值，與去年的相同事件相比，我們也增長了很多。這是第二個問題。

Your next question comes from Alicia Yap with Citigroup.

你的下一個問題來自花旗集團的 Alicia Yap。

(foreign language)

（外語）

[Interpreted] So my question is, can management elaborate or share a little bit of competitive landscape on JDDJ business compared to (inaudible). And then would there be any potential conflicts with our partnership ongoing on their local service versus our JDDJ business in terms of the consumer demands on the grocery category or the food category?

[解釋] 所以我的問題是，與（聽不清）相比，管理層能否詳細說明或分享 JDDJ 業務的競爭格局。那麼，就消費者對雜貨類別或食品類別的需求而言，我們在他們的本地服務與我們的 JDDJ 業務方面正在進行的合作是否會存在任何潛在衝突？

And then second question is can management share with us what is the latest consumption trends that you are seeing in terms of the consumption willingness on the bigger ticket items such as the electronics and appliances and also the supermarket category post the Chinese New Year.

然後第二個問題是，管理層能否與我們分享您在春節後對大件商品（如電子產品和電器）以及超市類別的消費意願方面所看到的最新消費趨勢。

(foreign language)

（外語）

[Interpreted] Thank you for your question. To answer your first question, we remain convinced of the enormous market opportunity as O2O further penetrates the entire retail sector given the low penetration rate we are seeing now. The industry is large enough to accommodate more than 1 player who can all enjoy healthy development.

[已翻譯] 謝謝你的提問。回答你的第一個問題，鑑於我們現在看到的低滲透率，我們仍然相信隨著 O2O 進一步滲透到整個零售行業，存在巨大的市場機會。行業大到可以容納1個以上的玩家，都可以健康發展。

(foreign language)

（外語）

[Interpreted] Specifically, regarding (inaudible) shopping, they and us have differentiated advantages and third parties will leverage the distinctive strengths to cater to diversified consumer needs.

[解讀] 具體來說，在（聽不清）購物方面，他們和我們有差異化優勢，第三方會利用不同的優勢來迎合多樣化的消費者需求。

(foreign language)

（外語）

[Interpreted] Now I will share with you my thoughts on our advantages on both the supply and demand side. On the supply front, our main edge lies in our positioning as a pure play platform and our digitalization capabilities, which has enabled us to work more extensively with leading chain merchants and brands, making us more competitive and variety, quality and pricing product supplies.

【解讀】下面我就供需雙方的優勢與大家分享一下我的看法。在供應方面，我們的主要優勢在於我們作為純遊戲平台的定位和我們的數字化能力，這使我們能夠更廣泛地與領先的連鎖商家和品牌合作，使我們更具競爭力和品種、質量和價格的產品供應。

(foreign language)

（外語）

[Interpreted] Now in contrast, our has direct sales business which competes directly with retailers. So retailers have concerns and reservations about launching their platform. In the right case that leading retailers agreed to work with the other platform. Only a number of stores have actually launched.

[解讀]現在相比之下，我們有直接與零售商競爭的直銷業務。因此，零售商對推出他們的平台有顧慮和保留。在正確的情況下，領先的零售商同意與其他平台合作。實際上只有一些商店已經開業。

Our last -- the other company goes through a fundamental strategic shift. It cannot transform into a pure marketplace as we are. That's why we are confident in maintaining this advantage and the long run.

我們的最後 - 另一家公司經歷了根本性的戰略轉變。它不能像我們一樣轉變成一個純粹的市場。這就是為什麼我們有信心長期保持這一優勢。

(foreign language)

（外語）

[Interpreted] Moving on to our capabilities and digitally empowering our retailers. After years of investments in technology and serving leading retailers, we've accumulated as best-in-class know-how and several well-recognized digital products and solutions such as Haibo and Dada Picking.

[解讀] 繼續發揮我們的能力並以數字方式為我們的零售商提供支持。經過多年對技術的投資和對領先零售商的服務，我們積累了一流的專業知識和數個廣受認可的數字產品和解決方案，例如海博和達達揀選。

These products were crucial in helping us maintaining a solid relation with our merchant partners.

這些產品對於幫助我們與商家合作夥伴保持穩固的關係至關重要。

(foreign language)

（外語）

[Interpreted] An auto platform not only provides a delivery network to retailers, but also needs to digitally empower them to improve operating efficiency.

【解讀】汽車平台不僅為零售商提供配送網絡，還需要數字化賦能零售商，提昇運營效率。

(foreign language)

（外語）

[Interpreted] And in terms of potential conflict, as you predict with (inaudible) main efforts right now are centered around the food delivery business. So there's not been much strategic conflict with our on-demand retail business.

[解釋] 就潛在衝突而言，正如您預測的那樣（聽不清），目前的主要努力集中在食品配送業務上。因此，與我們的按需零售業務沒有太多戰略衝突。

(foreign language)

（外語）

[Interpreted] To answer your second question on macro. The economic cycle and the changes in consumer confidence affects the entire retail industry and being -- in an on-demand retail platform, we are another exception.

[解讀] 回答你的第二個宏觀問題。經濟周期和消費者信心的變化影響著整個零售業，而在按需零售平台中，我們是另一個例外。

On the other hand, on-demand retail is still in the early stage with only single-digit penetration rate in the local retail sector. So we remain confident in the long-term potential of the industry.

另一方面，按需零售仍處於早期階段，在本地零售業的滲透率僅為個位數。因此，我們對該行業的長期潛力充滿信心。

(foreign language)

（外語）

[Interpreted] So in terms of outlook, we expect faster economic and consumption growth this year versus last year, but there is still some uncertainty in the pace of recovery. So we had higher expectations for the second half than in the first half.

【解讀】所以在展望方面，我們預計今年經濟和消費增速將比去年更快，但復甦的步伐仍存在一些不確定性。因此，我們對下半年的期望高於上半年。

(foreign language)

（外語）

[Interpreted] Since the pandemic control measures were lifted towards the end of 2022, there were massive infections in multiple regions in December and January, affecting the supply chain and the consumer confidence.

【解讀】自2022年底疫情管控措施解除以來，12月和1月多個地區出現大規模感染，影響供應鍊和消費者信心。

Now the shocks from COVID outbreaks have gradually subsided, people's daily lives and mobility has normalized, and the overall business environment is improving. So we are expecting better economic and consumption growth this year.

目前，疫情衝擊已逐漸平息，人們的日常生活和出行已趨於正常，整體營商環境正在改善。因此，我們預計今年的經濟和消費增長會更好。

(foreign language)

（外語）

[Interpreted] That said, we are seeing some uncertainties in the pace of recovery, especially in the first half, given that the pro consumption policies take time to bear fruit and the reopenings boost to your consumer income and confidence may not manifest itself immediately.

[解讀] 儘管如此，我們看到復甦的步伐存在一些不確定性，尤其是在上半年，因為有利於消費的政策需要時間才能見效，而重新開放對消費者收入和信心的提振可能不會立即顯現出來。

So we are seeing -- we're expecting modest growth in consumption in the first half and a re-acceleration in the second half as consumer confidence gradually recovers.

所以我們看到 - 我們預計上半年消費溫和增長，下半年隨著消費者信心逐漸恢復而重新加速。

(foreign language)

（外語）

[Interpreted] In the long run, thanks to the rapid rise of O2O penetration in retail, the confidence in achieving growth that significantly outpaces the e-commerce sector and other players.

【解讀】長期來看，得益於O2O在零售領域的滲透率快速提升，實現增長的信心明顯超過電商等板塊。

Your next question comes from Andre Chang with JPMorgan.

你的下一個問題來自摩根大通的 Andre Chang。

(foreign language) I will translate my question myself. So my questions are related to the traffic allocation from JD. So can management give us an update about the traffic source from multiple entry points in JD, such as [Buy Now], Nearby, et cetera?

（外語）我會自己翻譯我的問題。所以我的問題與京東的流量分配有關。那麼管理層能否向我們提供有關來自京東多個入口點的流量來源的最新信息，例如[立即購買]、附近等？

And which are the area that provides more growth driver in their view in the future. And second question is about the recent how the debate -- the strategy change of JD Group to give more support on the lower-priced products and the penetration into the lower-tier cities. Will that affect our traffic from JD Group or will actually be no chance for opportunity if we can provide competitive prices from our auto channel.

在他們看來，哪些領域是未來提供更多增長動力的領域。第二個問題是關於最近的爭論——京東集團的戰略轉變，為低價產品提供更多支持，並向低線城市滲透。如果我們可以從我們的汽車渠道提供有競爭力的價格，這是否會影響我們來自京東集團的流量，或者實際上將沒有機會。

(foreign language)

（外語）

[Interpreted] Thank you for your question. In terms of GMV mix across the multiple entry points on JD, we have 2 main entry points. The first is search or recommendation fleet on the JD homepage that accounts for 60% to 70% of our total GMV on the JD channel -- on the JD platform.

[已翻譯] 謝謝你的提問。就京東多個入口點的 GMV 組合而言，我們有 2 個主要入口點。首先是京東主頁上的搜索或推薦車隊，占我們在京東渠道——京東平台上的總 GMV 的 60% 到 70%。

And the second main entry point is the Nearby page. The Nearby page is the faster -- is a faster-growing entry point. In Q4, the GMV contributed by -- the GMV from the Nearby grew more than 300% year-over-year.

第二個主要入口點是“附近”頁面。附近頁面速度更快——是一個增長更快的入口點。在第四季度，來自附近的 GMV 貢獻的 GMV 同比增長超過 300%。

(foreign language)

（外語）

[Interpreted] So in terms of the drivers for the GMV growth, the first and most prominent growth driver is the expansion -- continued expansion on the supply front. We are continuously expanding our SKU selection in more categories and more regional grids.

[解讀]因此，就GMV增長的驅動力而言，第一個也是最突出的增長驅動力是擴張——供應方面的持續擴張。我們在更多類別和更多區域網格中不斷擴展我們的 SKU 選擇。

(foreign language)

（外語）

[Interpreted] So the second driver is our continuous iteration and upgrade in our product capabilities. For example, we are -- I think increasing our exposure rate among the repeat customers of Shop Now in search results.

【解讀】那麼第二個驅動就是我們在產品能力上的不斷迭代升級。例如，我們 - 我認為在搜索結果中增加我們在 Shop Now 回頭客中的曝光率。

(foreign language)

（外語）

[Interpreted] And the third driver is the retention of users who have experienced the convenience of on-demand shopping through search results. We will retain them with our Nearby shopping channel to increase their consumer stickiness and have (inaudible) habit.

[解讀] 第三個驅動因素是通過搜索結果體驗到按需購物便利的用戶的留存。我們將通過我們的附近購物渠道留住他們，以增加他們的消費粘性和養成（聽不清）習慣。

(foreign language)

（外語）

[Interpreted] And to answer your second question about daily strategic change for more low-priced offerings. We are relatively optimistic about the impact on our platform. The main reason for that is, in some categories, the offline channels is efficient in terms of the supply chain. So we will gain faster growth in these categories.

[解釋] 並回答你的第二個問題，即關於更多低價產品的日常戰略變化。我們對我們平台的影響相對樂觀。主要原因是，在某些類別中，線下渠道在供應鏈方面是高效的。因此，我們將在這些類別中獲得更快的增長。

(foreign language)

（外語）

[Interpreted] In some categories, we have achieved double-digit penetration rate. And our long-term target remains to penetrate 50% of JD users.

【解讀】在部分品類，我們實現了兩位數的滲透率。我們的長期目標仍然是滲透 50% 的京東用戶。

That's all the time we have for question-and-answer session today. I'll now hand back to Caroline Dong for closing remarks.

這就是我們今天問答環節的全部時間。我現在將交還給 Caroline Dong 做閉幕詞。

Thank you, operator. In closing, on behalf of Dada's management team, we'd like to thank you for your participation in today's call. If you require any further information, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call.

謝謝你，運營商。最後，我們代表達達的管理團隊感謝您參與今天的電話會議。如果您需要任何進一步的信息，請隨時直接與我們聯繫。感謝您今天加入我們。通話到此結束。

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

我們今天的會議到此結束。感謝您的參與。您現在可以斷開連接。