Dada Nexus Ltd (DADA) 2023 Q4 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by for Dada's fourth quarter and fiscal year 2023 earnings conference call. (Operator Instructions)

早安，女士們，先生們。感謝您耐心等待達達第四季和 2023 財年的財報電話會議。（操作員說明）

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

提醒一下，今天的電話會議正在錄音。現在我想將會議交給今天電話會議的東道主，Dada 投資者關係主管 Caroline Dong 女士。請繼續。

Thank you, operator. Hello, everyone, and thank you for joining our fourth quarter and fiscal year 2023 earnings conference call. On the call today from Dada, we have Mr. Bing Fu, Interim President; and Mr. Henry Jun Mao, CFO. Mr. Fu will talk about our operations and company highlights, then Mr. Mao will discuss the financials. They will both be available to answer your questions during the Q&A session.

謝謝你，接線生。大家好，感謝您參加我們的第四季和 2023 財年財報電話會議。今天，臨時主席傅兵先生接了達達的電話。毛亨利先生，財務長。傅先生將談論我們的營運和公司亮點，然後毛先生將討論財務狀況。他們都將在問答環節回答您的問題。

Please kindly note that Mr. Fu will give his remarks and answer questions in Chinese, and the consecutive translation will be provided. In case of any discrepancy between the original remarks and the translated version, statements in the original remarks should prevail.

請注意，傅先生將用中文發言和回答問題，並提供逐字翻譯。如原備註與翻譯版本有差異，以原備註為準。

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

在開始之前，我想提醒您，本次電話會議包含前瞻性陳述。請參閱我們的投資者關係網站上的收益新聞稿中最新的安全港聲明，該聲明適用於本次電話會議。此外，在本次電話會議中，我們將討論某些非公認會計準則財務指標。另請參閱我們的收益新聞稿，其中包含非 GAAP 衡量標準與可比較 GAAP 衡量標準的調整表。

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 Interim President, Mr. Fu. Mr. Fu, please go ahead.

最後請注意，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。現在我很高興介紹我們的臨時主席傅先生。傅先生，請講。

(interpreted) Thank you, Caroline, and thank you all for joining us. Before we get into the highlights from the quarter, I would like to address the recent independent review results released by the company on March 5, 2024.

（翻譯）謝謝你，卡洛琳，也謝謝大家加入我們。在我們討論本季的亮點之前，我想先談談該公司於 2024 年 3 月 5 日發布的最新獨立審查結果。

Back in January, we disclosed that during a routine internal audit, the company identified a potential overstatement in revenues and costs related to online advertising and marketing services for the first three quarters of 2023. The company took this matter seriously, and the audit committee of the Board immediately initiated an independent review with the assistance of a third-party independent professional advisors, consisting of a leading international law firm and forensic accounting experts from an international consulting firm that is not the company's auditor.

早在 1 月份，我們就揭露，在例行內部審計中，該公司發現 2023 年前三個季度與線上廣告和行銷服務相關的收入和成本可能存在誇大。公司高度重視此事，董事會審計委員會立即在第三方獨立專業顧問的協助下啟動了獨立審查，該顧問由一家領先的國際律師事務所和一家非國際諮詢公司的法務會計專家組成。公司的審計師。

Upon the substantial completion of the review, we announced the findings and remedial measures on March 5, including collection of certain information and the relevant past financial statements that are necessary and appropriate.

在審查基本完成後，我們於 3 月 5 日公佈了調查結果和補救措施，包括收集必要且適當的某些資訊和相關的過往財務報表。

As you may have noticed the corrected line items of financial statements for the first three quarters of 2023 are presented in our earnings release, and it's important to note that neither net profit or loss nor cash balance was impacted by the correction in the corresponding periods.

您可能已經注意到，我們的收益報告中列出了 2023 年前三個季度財務報表的更正項目，值得注意的是，淨利潤或虧損以及現金餘額均未受到相應期間更正的影響。

As part of our dedication to reinforcing corporate governance, we will enhance the company's internal policies, systems and controls, and record-keeping and implement rigorous internal audits with enhanced monitoring and oversight mechanisms going forward to strengthen transparency, accountability, and integrity at all levels of the company.

作為我們致力於加強公司治理的一部分，我們將加強公司的內部政策、系統和控制以及記錄保存，並實施嚴格的內部審計，並加強監控和監督機制，以加強各級的透明度、問責制和誠信度該公司的。

Now, let's go through our financial and business performance. During the fourth quarter of 2023, though faced with challenges, Dada Group made steady progress in improving both top line and operating efficiency. Our total net revenues increased by 3% and adjusted net margin improved by 1 percentage point year over year.

現在，讓我們回顧一下我們的財務和業務績效。2023年第四季度，儘管面臨挑戰，達達集團在營收和營運效率的提升上仍取得穩步進展。我們的總淨收入年增 3%，調整後淨利率年增 1 個百分點。

Before I get into the operating highlights from our two platforms, a brief update on our cooperation with JD.com. With respect to JDDJ, we continued to reach more JD users and optimize their user experience. In the fourth quarter, the number of monthly average Xiaoshida transacting users increased by 50% year on year. To break down by entry point, the standalone Xiaoshida tab saw its DAU more than double year on year, driven by the increased click-through rate on the JD homepage.

在介紹我們兩個平台的營運亮點之前，先簡單介紹一下我們與京東的合作情況。京東到家方面，我們持續觸達更多京東用戶，優化用戶體驗。第四季度，小食達月均交易用戶數較去年同期成長50%。按入口點細分，在京東首頁點擊率上升的推動下，獨立的小食達標籤的 DAU 同比增長了一倍多。

Meanwhile, order conversion rate within the Xiaoshida tab increased by more than 1 percentage point year on year. As a result, GMV generated by online traffic on the Xiaoshida tab more than tripled year on year. For search result exposure, another major entry point on JD, we are glad to see that GMV generated by users who actively filter [for] (corrected by company after the call) Xiaoshida products among search results increased by 30% year on year in the fourth quarter, demonstrating growing on-demand mindshare among JD users.

同時，小食達標籤內的訂單轉換率較去年同期成長超過1個百分點。結果，小事達標籤上的線上流量產生的 GMV 年比增長了兩倍多。對於京東的另一個主要切入點－搜尋結果曝光，我們很高興地看到，搜尋結果中主動過濾[for]（公司在通話後已更正）小食達產品的用戶所產生的GMV同比增長了30 %。第四季度，京東用戶的按需消費觀念不斷增強。

Meanwhile, Dada Now's cooperation with JD.com further strengthened. In the fourth quarter, Dada Now continued to provide dedicated support to JD's on-demand delivery needs, with orders fulfilled doubling year on year.

同時，達達與京東的合作也進一步加強。第四季度，達達即時持續全力支援京東的按需配送需求，訂單履行量較去年同期成長一倍。

Now let's go through the detailed fourth-quarter operational highlights for JDDJ, the leading local on-demand retail platform in China. In the fourth quarter, we continued to deepen cooperation with large chains and empower more SMEs. As of the end of 2023, JDDJ had onboarded over 500,000 retail stores, more than doubling from the end of 2022.

現在讓我們詳細了解中國領先的本地按需零售平台京東到家第四季度的具體營運亮點。第四季度，我們持續深化與大型連鎖企業的合作，賦能更多中小企業。截至2023年底，京東到家已入駐零售門市超過50萬家，較2022年底增加一倍以上。

In the supermarket category, we cooperated closely with over 90 out of the top 100 supermarket chains as well as regional champions to provide our users with industry-leading high-quality supplies. At the same time, we deepened cooperation with major convenience store chains, such as JD convenience store, the offline store format empowered by JD.com; Meiyijia, the largest convenience store operator in China in terms of store count; and Lawson, the fifth largest by the same metric. Total GMV generated by convenience stores in the fourth quarter increased by more than 4 times year on year.

在超市品類，我們與百強連鎖超市中的90多家以及區域龍頭企業密切合作，為用戶提供業界領先的優質貨源。同時，我們深化與各大連鎖便利商店的合作，如京東便利商店、京東賦能的線下門市業態；美宜家，中國門市數量最大的便利商店業者；勞森 (Lawson)，以同一指標排名第五。第四季便利商店總GMV年成長逾4倍。

Moving on to consumer electronics, in the smartphone subcategory, the GMV of OPPO and Samsung mobile phones more than doubled year on year in Q4. In the computer and accessories subcategory, digital products maintained a rapid GMV growth of more than 50% year on year, and we also made significant progress in essential accessories such as chargers.

再看消費電子，在智慧型手機子類別中，OPPO、三星手機第四季GMV年增一倍以上。在電腦及配件子類別中，數位產品維持了年比50%以上GMV的快速成長，充電器等必備配件也取得了顯著進展。

Turning to the home appliance and home furnishing category, during the quarter, we established new partnerships with major appliance brands such as Panasonic and Robam, one of China's top kitchen appliance brands. Meanwhile, we worked more closely with leading smart lock manufacturers such as Kaadas (spoken in foreign language). Collectively, we newly onboarded over 10,000 home appliance and home furnishing stores onto our platform.

談到家電家居品類，本季我們與松下、中國頂級廚房電器品牌之一的老闆等主要家電品牌建立了新的合作夥伴關係。同時，我們與Kaadas等領先的智慧鎖製造商更緊密地合作（用外語說）。總的來說，我們的平台上新增了 10,000 多家家電和家居商店。

As a result, in the fourth quarter, GMV of home appliance merchants increased by more than 50% year on year, while the GMV of home furnishing merchants nearly doubled year on year.

由此，第四季家電商家GMV年增超過50%，家居商戶GMV年增近一倍。

In the liquor category, GMV in the fourth quarter increased more than 3 times year on year, driven by regional store expansion. In the apparel category, GMV surged more than threefold, driven by our continued expansion in the sports and outdoor segment and differentiation of product offerings.

白酒品類方面，在區域門市擴張的帶動下，第四季GMV年增超過3倍。在服裝類別中，受我們在運動和戶外領域的持續擴張以及產品供應差異化的推動，GMV 飆升了三倍以上。

Technological empowerment is an important focus in our partnership with retailers. Haibo, our omni-channel O2O operating system, had been deployed in more than 13,000 stores as of year-end 2023, an increase of over 40% from the end of 2022. In 2023, Haibo's customer retention rate remained at around 90% despite a significantly enlarged customer base. This underscores the recognition among merchants of Haibo's ability to enhance their operational efficiency.

技術賦能是我們與零售商合作的一個重要重點。截至2023年底，我們的全通路O2O作業系統海博已在超過13,000家門市部署，較2022年底成長超過40%。2023年，海博在客戶規模大幅擴大的情況下，客戶保留率仍維持在90%左右。這凸顯了商戶對海博提升營運效率能力的認可。

We continued to add more features to Haibo and improve its existing functionality to help merchants address pain points and improve operations. For example, in the fourth quarter, Haibo added a new feature to intelligently identify fraudulent orders and provide real-time monitoring and alert, thus enhancing merchants' risk control capabilities and operational security.

我們持續為海博添加更多功能並完善其現有功能，以協助商家解決痛點並改善營運。例如，海博在第四季度新增了智慧識別詐欺訂單並提供即時監控和警報的功能，從而增強了商家的風控能力和營運安全性。

Let's move on to Dada Now, the leading local on-demand delivery platform in China. As of the end of 2023, our intra-city delivery and last-mile businesses covered over 2,500 and over 2,600 cities and counties, respectively, penetrating into more lower-tier cities. In 2023, we had more than 1.2 million annual active riders on the Dada Now platform, an increase of more than 20% year over year, further expanding flexible employment opportunities for a wide range of workers.

讓我們來看看達達吧，中國領先的本地按需配送平台。截至2023年底，我們的同城配送和最後一公里業務分別覆蓋超過2,500個和超過2,600個市縣，並滲透到更多的低線城市。2023年，達達Now平台年度活躍騎士超過120萬，年成長超過20%，進一步擴大了廣大勞工的彈性就業機會。

For our KA, or chain merchants' business. In the fourth quarter, KA business delivered high-quality growth, with orders fulfilled increasing by more than 20% year on year, average gross profit per order continuously improving year on year, and fulfillment rate reaching at above 95%. The quality and cost effectiveness of our fulfillment services remain well-recognized by merchants. Notably, all of the top 50 revenue contributors among our KA clients in 2022 continued to rely on our services in 2023.

對於我們的KA，即連鎖商戶的業務。第四季度，KA業務實現高品質成長，訂單履行量年增20%以上，單單平均毛利年增，履行率達95%以上。我們的履行服務的品質和成本效益仍然受到商家的廣泛認可。值得注意的是，2022 年 KA 客戶中收入貢獻最大的 50 名客戶在 2023 年繼續依賴我們的服務。

In the beverage KA category, orders fulfilled increased by more than 60% year on year in the fourth quarter. In October, we received the Best Strategic Partner Award from Luckin Coffee, the largest coffee chain in China by store count. In addition, we also received recognition from CHAGEE, a popular new-style tea chain in China, having fulfilled a rapidly growing volume of orders with high-quality service since the establishment of our strategic partnership in early 2023.

飲料KA品類第四季訂單履行量年增超過60%。10月，我們獲得中國門市數最大的咖啡連鎖企業瑞幸咖啡頒發的最佳策略夥伴獎。此外，我們也獲得了中國熱門新式茶連鎖企業CHAGEE的認可，自2023年初建立戰略合作夥伴關係以來，以優質的服務完成了快速增長的訂單量。

In the restaurant KA category, orders fulfilled for newly partnered brands such as Tastien, a Chinese-style burger chain, also ramped up rapidly.

在餐廳KA品類中，中式漢堡連鎖店Tastien等新合作品牌的訂單量也迅速增加。

Moving on to our SME and C2C business. The number of SME and C2C orders fulfilled in the fourth quarter increased by more than 20% year on year from a high base in the prior-year period, driven by pricing optimization, expansion into new verticals, and increased penetration into lower-tier cities.

接下來是我們的中小企業和 C2C 業務。在定價優化、新垂直領域擴張以及低線城市滲透率提升的推動下，第四季中小企業和C2C訂單履行量年增超過20%，較上年同期高基數增長。

This concludes the overview of our business performance. To wrap up, it was a robust close to the year, and heading into 2024, we will continue to place healthy growth at the heart of our overall strategy for creating shareholder value. I will now pass the call over to Henry to go through our financials for the fourth quarter and the fiscal year 2023. Thank you.

我們的業務績效概述到此結束。總而言之，今年是個強勁的收官之年，進入 2024 年，我們將繼續將健康成長作為創造股東價值的整體策略的核心。我現在將把電話轉給亨利，讓他檢查我們第四季和 2023 財年的財務狀況。謝謝。

Thanks Mr. Fu. I'm pleased to be on my first earnings call as CFO of Dada Group to discuss our financial performance with our valued analysts and investors.

謝謝傅先生。我很高興能作為達達集團財務長參加我的第一次財報電話會議，與我們尊貴的分析師和投資者討論我們的財務表現。

Just a few housekeeping items before we go over the numbers. We believe year-over-year comparisons are the most useful way to evaluate our performance, therefore, all percentage changes I'm going to give will be on year-over-year basis. And all figures are in RMB, unless otherwise noted. In addition, figures for full-year 2023 have reflected the correction of past financial statements, details of which are laid out in annex to our earnings release.

在我們回顧數字之前，先介紹一些家務用品。我們相信同比比較是評估我們績效的最有用的方法，因此，我將給出的所有百分比變化都將基於同比。除非另有說明，所有數字均以人民幣為單位。此外，2023 年全年資料反映了對過去財務報表的更正，其詳細資訊列於我們的收益發布附件中。

Total net revenues in the fourth quarter increased by 3% to RMB2.75 billion. Net revenues from JDDJ reached RMB1.55 billion, mainly due to the decrease in online advertising and marketing services revenue. Net revenues from Dada Now increased by 36% to RMB1.20 billion, mainly driven by the increases in order volume of intra-city delivery services to chain merchants.

第四季總淨收入成長3%至人民幣27.5億元。京東到家淨收入達人民幣15.5億元，主要是因為網路廣告及行銷服務收入減少。達達的淨收入成長36%至人民幣12.0億元，主要是由於連鎖商戶同城配送服務的訂單量增加所致。

Moving over to cost and expense side, operations and support costs were RMB1.9 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.

轉向成本和費用方面，營運和支援成本為 19 億元。此成長主要是由於向各連鎖商家提供的同城配送服務訂單量增加導致騎士成本增加。

Selling and marketing expenses decreased to RMB1.0 billion, primarily due to a decrease in promotional activities conducted on JDDJ platform and a decrease in advertising and marketing expenses.

銷售及行銷費用減少至人民幣10億元，主要由於京東到家平台促銷活動減少及廣告及行銷費用減少。

General and administrative expenses decreased to RMB89 million as a result of decreased amortization of intangibles related with the acquisition of JDDJ in 2016 and reduced share-based compensation expenses.

由於2016年收購京東到家相關無形資產攤提減少及股權激勵費用減少，一般及行政費用減少至人民幣8,900萬元。

Research and development expenses decreased to RMB91 million, mainly due to lower R&D personnel cost.

研發費用減少至人民幣9,100萬元，主要是因為研發人員成本下降。

Impairment loss of goodwill was RMB958 million for the fourth quarter of 2023.

2023年第四季商譽減損損失為人民幣9.58億元。

Non-GAAP net loss was RMB159 million, an improvement compared with the loss of RMB179 million in the fourth quarter of 2022. Non-GAAP net loss margin was 5.8%, improving by 1 percentage point year over year.

非美國通用會計準則淨虧損為人民幣 1.59 億元，較 2022 年第四季的虧損人民幣 1.79 億元有所改善。非 GAAP 淨虧損率為 5.8%，較去年同期增加 1 個百分點。

As of December 31, 2023, we had RMB4.0 billion in cash, cash equivalents, restricted cash, and short-term investments.

截至2023年12月31日，我們擁有現金、現金等價物、限制性現金及短期投資人民幣40億元。

I will now quickly run through a few key full-year 2023 financial results. Further details can be found in our earnings release.

我現在將快速瀏覽一些關鍵的 2023 年全年財務表現。更多詳細資訊可以在我們的財報中找到。

Total net revenue in 2023 increased by 12% to RMB10.5 billion, with revenue from JDDJ growing by 5% to RMB6.5 billion and revenue from Dada Now growing by 27% to RMB4.0 billion.

2023年總淨收入成長12%至人民幣105億元，其中京東到家收入成長5%至人民幣65億元，達達快收入成長27%至人民幣40億元。

Operations and support costs were RMB6.5 billion, compared with RMB5.7 billion in 2022.

營運和支援成本為人民幣 65 億元，而 2022 年為人民幣 57 億元。

Selling and marketing expenses were RMB4.5 billion, compared with RMB4.7 billion last year. General and administrative expenses were RMB253 million, compared with RMB409 million in 2022. Research and development expenses were RMB416 million, compared with RMB631 million in 2022.

銷售及行銷費用為 45 億元，而去年為 47 億元。一般及行政費用為 2.53 億元，而 2022 年為 4.09 億元。研發費用為人民幣4.16億元，2022年為人民幣6.31億元。

Our non-GAAP net loss was RMB342 million, compared with RMB1.3 billion in 2022. Non-GAAP net loss margin was 3.3%, improving by 11 percentage points year over year.

我們的非 GAAP 淨虧損為人民幣 3.42 億元，而 2022 年為 13 億元。非 GAAP 淨虧損率為 3.3%，較去年同期增加 11 個百分點。

In addition, we have announced that the Board of Directors has authorized a share repurchase program of up to USD40 million of American depository shares funded by our existing cash balance for a two-year period through March 2026. Our decision to repurchase shares is part of our broader strategy to create long-term value for our shareholders. We will stay committed to prioritizing shareholder interest and enhancing shareholder returns.

此外，我們也宣布，董事會已授權一項股票回購計劃，回購金額高達 4,000 萬美元的美國存託股票，由我們現有的現金餘額提供資金，為期兩年，直至 2026 年 3 月。我們回購股票的決定是我們為股東創造長期價值的更廣泛策略的一部分。我們將繼續致力於優先考慮股東利益，提高股東回報。

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

我們準備好的演講到此結束。接線員，我們現在準備開始問答環節。謝謝。

(Operator Instructions) Lei Zhang, Bank of America.

（操作員指令） Lei Zhang，美國銀行。

(interpreted) Thanks, management, for taking my question. Two questions here. First, can you share more color with us in terms of the macro and the consumption downgrade, the impact to our business? Secondly, wondering your overall 2024 outlook, including the subsidy plan of JDDJ business. Thank you.

（解釋）謝謝管理層提出我的問題。這裡有兩個問題。首先您能從宏觀和消費降級對我們業務的影響方面跟我們分享嗎？其次，想知道你們2024年的整體展望，包括京東到家業務的補貼計畫。謝謝。

(interpreted) Thank you for your question. I will answer your first one.

（翻譯）謝謝你的提問。我會回答你的第一個。

In 2023, as the economy and society normalized, the consumption market gradually recovered. Nonetheless, there was still room for consumers' spending power and confidence to improve.

2023年，隨著經濟社會正常化，消費市場逐漸恢復。儘管如此，消費者的消費能力和信心仍有提升空間。

Heading into 2024, with the economy poised to further rebound and improve, as well as the introduction of a series of macro-stimulus and pro-consumption policies, the recovery and expansion of consumption will be further strengthened.

進入2024年，隨著經濟進一步回升向好，以及一系列宏觀刺激和消費政策的出台，消費恢復和擴大的力道將進一步加強。

Last year, service consumption, such as catering, tourism, and entertainment, boomed, thanks to the return of offline consumption scenarios, as well as the unleashing of pent-up demand, which took off some steam from the recovery of physical goods consumption.

去年，由於線下消費場景的回歸，以及被壓抑的需求的釋放，餐飲、旅遊、娛樂等服務消費蓬勃發展，為實物消費的復甦帶來了一定的動力。

Consumption data for the first two months of the year indicates continued strength in service consumption, such as catering and tourism and stable recovery in physical goods consumption. Looking ahead, we expect a more balanced wallet share of services versus physical goods this year.

前兩個月消費數據顯示，餐飲、旅遊等服務消費持續強勁，實體消費穩定復甦。展望未來，我們預期今年服務與實體商品的錢包份額將更加平衡。

The on-demand retail sector is still in the early days of development. Given the edge of on-demand retail in both convenience and product selection, we remain confident that its penetration among retail sales can further trend up in the long run.

按需零售業仍處於發展初期。鑑於按需零售在便利性和產品選擇方面的優勢，我們仍然有信心其在零售銷售中的滲透率將在長期內進一步上升。

Thank you, Lei, and I will take your second question. So regarding the overall strategy, I think in 2024 -- with respect to JDDJ, I think it definitely will continue to enrich its supply to meet the rising consumer demand for the on-demand shopping, enhancing our user experience, and mindshare. Meanwhile, I think we will focus on the health of JDDJ's business and improve the operating efficiency.

謝謝雷老師，我回答你的第二個問題。所以就整體策略而言，我認為在2024年，對於京東到家來說，我認為它肯定會繼續豐富其供給，以滿足消費者日益增長的按需購物需求，增強我們的用戶體驗和思維份額。同時，我認為我們將專注於京東到家業務的健康狀況並提高營運效率。

In terms of the promotion activities and consumer incentives, I think we will continuously invest in a targeted manner to drive the growth while ensuring the health of the business by evaluating the ROI across different channels, user demographics, and categories to optimize our subsidy efficiency.

在促銷活動和消費者激勵方面，我認為我們將持續有針對性地投入，以推動成長，同時透過評估不同管道、用戶群體和類別的投資回報率來確保業務的健康，以優化我們的補貼效率。

And also, with respect to Dada Now, I think we all know that Dada Now has its own adventurous nationwide rider network. So Dada Now will continuously focus on its KA business with sustained efforts to enhance its services and technologies.

而且，關於 Dada Now，我想我們都知道 Dada Now 擁有自己的冒險全國騎士網路。因此，Dada Now將繼續專注於KA業務，並持續努力提升服務和技術。

Going forward, I think Dada Now will work more closely with existing customers while proactively acquiring new clients to ride on the boom of on-demand delivery to seek business growth along with the efficiency gains. And I hope that answers your question.

展望未來，我認為達達現在將與現有客戶更加緊密地合作，同時積極爭取新客戶，利用按需交付的熱潮，尋求業務成長和效率提升。我希望這能回答你的問題。

Thomas Chong, Jefferies.

托馬斯莊，杰弗里斯。

(interpreted) Thanks, management, for taking my question. I have two questions to. First, for Dada Now, how KA order and the revenue momentum this year? And my second question is about JDDJ. Could you please provide any color about JDDJ's outlook in 2024? Thank you.

（解釋）謝謝管理層提出我的問題。我有兩個問題要問。首先，對於Dada Now來說，今年的KA訂單和營收動能如何？我的第二個問題是關於京東DJ的。能透露一下京東到家2024年的展望嗎？謝謝。

(interpreted) Thank you. I'll take the first question.

（翻譯）謝謝。我來回答第一個問題。

In the fourth quarter of 2023, our KA business delivered high-quality growth with the number of orders fulfilled increasing by more than 20% year on year, as well as rapid revenue growth year on year. The healthy momentum primarily resulted from robust growth of our beverage chain customers as well as our deepened cooperation with them. And we're pleased to see that these trends remain ongoing, and we expect that to continue into 2024.

2023年第四季，KA業務實現高品質成長，訂單履行量年增超過20%，營收年增。這種健康的勢頭主要得益於我們的飲料連鎖客戶的強勁成長以及我們與他們的深入合作。我們很高興看到這些趨勢仍在持續，我們預計這種趨勢將持續到 2024 年。

We think these trends are likely to sustain, thanks to Dada Now nationwide rider network, stable and efficient fulfillment, ability to cater to our top brands' needs for customized services, as well as our competitive edge in cost efficiency. We're confident in attracting more merchant partners in all verticals and deepening partnership with our existing customers. In the long run, we expect to further gain market share in the third-party on-demand delivery industry and maintain above-industry growth.

我們認為，由於 Dada Now 覆蓋全國的騎士網路、穩定高效的配送、滿足頂級品牌客製化服務需求的能力以及我們在成本效率方面的競爭優勢，這些趨勢可能會持續下去。我們有信心在所有垂直領域吸引更多的商業合作夥伴，並加深與現有客戶的合作關係。長期來看，我們預計將進一步擴大第三方按需配送產業的市場份額，並維持高於產業的成長。

Okay, I will take the second question. Yeah, as I mentioned earlier, I think regarding JDDJ, so in 2024, we will be laser-focused on the high-quality growth of the business and tapping into the market opportunities of on-demand retail together with the JD.com and to further improve the shopping experience for the customers and to unleash more synergies with JD.com.

好的，我來回答第二個問題。是的，就像我剛才提到的，我覺得對於京東到家來說，2024年我們會聚焦業務的高品質成長，和京東一起挖掘按需零售的市場機會，進一步改善顧客的購物體驗，並與京東發揮更多協同效應。

And in the long run, we are very confident in delivering sustainable healthy growth given our commitment to the implementation of our on-demand retail strategy, along with our efforts to enrich the product offerings and to enhance the user experience.

從長遠來看，我們對實現永續健康成長非常有信心，因為我們致力於實施按需零售策略，並努力豐富產品種類並增強用戶體驗。

Xiong Wei, UBS.

熊偉，瑞銀。

Thanks, management, for taking my question.

謝謝管理層回答我的問題。

(interpreted) Could management share your strategic focus on JDDJ development? Are we more focusing on user growth and frequency improvement, or are we continuing to do more cost efficiency improvement and improve unit economics in 2024? Could you give us more color around balancing the top-line growth and profitability improvement? Thanks.

（解釋）管理階層能否分享一下京東到家發展的策略重點？2024年我們是更關注用戶成長與頻次提升，還是繼續做更多成本效率提升、提高單位經濟效益？您能否為我們提供更多有關平衡營收成長和獲利能力改善的資訊？謝謝。

Thank you for your question. I think, yeah, we have discussed this a lot. I think on one hand, we've always been focused on high-quality user growth and high-quality improvement in repeat purchase rate and the shopping frequency. With users at the heart of our strategy, we will continuously optimize our merchandise offerings, interface design, and business operations.

謝謝你的問題。我想，是的，我們已經討論過很多次了。我認為一方面，我們一直專注於用戶的高品質成長，以及重複購買率和購物頻率的高品質提升。以使用者為策略核心，我們將持續優化我們的商品供應、介面設計和業務營運。

Also, we will continue to unleash more synergies with JD.com to efficiently serve consumers diversified on-demand shopping needs. I think in doing so, we aim to improve the overall user experience and to enhance user mindshare.

同時，我們將繼續與京東發揮更多協同效應，高效服務消費者多元化的按需購物需求。我認為這樣做的目的是改善整體用戶體驗並增強用戶的關注度。

I think for this year, JDDJ will focus on the health of its business growth and adapt a more ROI-driven approach to achieve high-quality growth and operating efficiency improvement. Our overall goal is to achieve high-quality, healthy, and a sustainable business growth, along with a steady improvement in profitability. I mean, in the long run, we are very confident in delivering the sustainable high-quality growth.

我認為今年京東到家將聚焦業務健康成長，採取更以投資報酬率驅動的方式，實現高品質成長和營運效率提升。我們的整體目標是實現業務高品質、健康永續發展，獲利能力穩定提升。我的意思是，從長遠來看，我們對實現可持續的高品質成長非常有信心。

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

謝謝。目前沒有其他問題。現在請 Caroline Dong 女士致閉幕詞。

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. Thanks for joining us today. This concludes the call.

謝謝你，接線生。最後，我們謹代表達達管理團隊感謝您參加今天的電話會議。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。通話就此結束。

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。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。