DaDa Group (DADA.US) – Note 4 (4Q20 Charts)

[March 12th, 2021]

One of my concern in 4Q20 is the decreased contribution margin (%) due to rising operations and support costs probably driven by competition. I believe the change of accounting treatment on last-mile delivery service provided to JD Logistics will have “some” impact on topline (-) and contribution margin (+). There’s no impact on profit dollar but still it will introduce noises. I expect to feel the impact first from the guidance of 2Q21 when the company reports 1Q21 results. Not sure if we will see a before-after comparison in 2Q21 ER. Guessing 2Q21’s DaDa Now’s net revenue will be a fun exercise.

JD.com reported 4Q20 results yesterday so I try to chart DaDa’s user adoption/ wallet penetration proxy from a top-down perspective within JD.com’s ecosystem.

Top-down

Operation Metrics – JDDJ

Operation Metrics – DaDa Now

Corporate Financial Metrics

Related posts:
DaDa Group (DADA.US) – Note 1
DaDa Group (DADA.US) – Note 2
DaDa Group (DADA.US) – Note 3 (4Q20ER)


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