[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.
Operation Metrics – JDDJ
Operation Metrics – DaDa Now
Corporate Financial Metrics