Dada Group Included on Hurun's Top 500 Private Enterprises in China List
SHANGHAI, Dec. 30, 2020 /PRNewswire/ -- Dada Group (Nasdaq: DADA) ("Dada" or the "Company"), China's leading local on-demand delivery and retail platform, is pleased to announce the Company's inclusion on Hurun Research Institute's "China's Top 500 Private Enterprises in 2020" list, based on market value. "Chinese private enterprises" refers to non-state-controlled enterprises with headquarters in mainland China. Dada ranked 211th.
"We are pleased to have been included on Hurun's list and believe it demonstrates the significant advantages of Dada's on-demand retail and delivery platforms," said Philip Kuai, Founder, Chairman and Chief Executive Officer of Dada Group. "We're proud of our work digitalizing local retail and offering customers a highly efficient, convenient shopping experience and thank our employees, dedicated riders, partners and investors for their ongoing support."
In addition to the strong performance of the sector and Dada's long-term growth potential, the ranking of the Company among China's Top 500 Private Enterprises also demonstrates Dada's impressive brand value.
A Leader in the On-Demand Retail Industry
Consumer habits have changed as the world continues to grapple with the COVID-19 pandemic, and the on-demand retail market has seen substantial growth and rapid development. According to data from the Huaon Institute, the on-demand delivery industry grew 30%-40% during the past three years and is expected to reach 170 billion yuan by the end of 2020.
Dada has always prioritized "value creation" in corporate development. The Company empowers retailers, brand owners and users to kick start their digital transformation by growing online traffic, cutting costs and enhancing efficiency through its Haibo system. Dada's rapid growth comes as a result of the channel advantage and regional coverage of intra-city retail, expanding product categories, partnership with retailers and brand owners and continuous innovation in brand marketing.
As the local on-demand retail market keeps growing, Dada Group's industry-leading business model and omni-channel digital platform will lead to revenue growth and new services for Dada Group users, further enhancing the value of on-demand retail channels.
Strong Financial Position and Growth Prospects
Dada became China's first on-demand retail stock when it listed on NASDAQ in June 2020, and is well-positioned to gain market share in the growing on-demand retail and delivery industry. Dada Group reported its 2020 Q3 earnings in November 2020 with financial performance beating market expectations.
In the Company's Q3 report, it announced significant improvements in market share. In the first nine months of 2020, JDDJ ranked first in market share for Chinese local retail mall and supermarkets' O2O platforms, increasing to 24% from 21% in 2019 and Dada Now continued to consolidate its leadership among China's socialized intra-city delivery platforms, in which its market share climbed to 24% from 19% in 2019.
Additionally, Dada Group's gross operating revenue in Q3 reached 1,305 million yuan, a year-on-year increase of 85.5%, exceeding market expectations. Both JDDJ and Dada Now have maintained strong momentum and growth. In Q3, JDDJ achieved revenue of 582.5 million yuan, and Dada Now reported revenue of 719 million yuan; a year-on-year increase of 91.0% and 81.3%, respectively.
Dada also reported a rising number of active users and customer orders. JDDJ covers nearly 1,200 counties, districts and cities across the country and in the past 12 months, it had 37.3 million active users, a year-on-year increase of 77.1%. The platform had a GMV of 21.3 billion yuan, a year-on-year increase of 102.9%. Dada Now covers over 2,500 counties and cities nationwide, and the number of delivery orders in the past 12 months surpassed 1 billion for the first time.
As its revenue and market share have grown, Dada Group has been recognized by investment institutions and investment banks in China and internationally for its strong performance. Many institutions have expressed optimism about Dada Group's future growth expectations and increased its price target. Dada Group was given a "buy" rating by well-known investment banks such as Goldman Sachs and Daiwa Capital Markets.
About Dada Group
Dada Group is a leading platform of local on-demand retail and delivery in China. It operates JDDJ, one of China's largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The Company's two platforms are inter-connected and mutually beneficial. The Dada Now platform enables improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform. In June 2020, Dada Group began trading on the Nasdaq Global Market, under the ticker symbol "DADA."
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