Dadas IPO is successful, with a loss of 5 billion yuan in three years. Why is it expected by Liu qiangdong and others

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 Dadas IPO is successful, with a loss of 5 billion yuan in three years. Why is it expected by Liu qiangdong and others


From a child to a teenager. This is how he describes dada today. And hope that dada, with a great sense of awe and mission to create, to develop, everything is just beginning.

It has been established for six years, and reaches a leading local real-time retail and distribution platform in China. It has two core business platforms, dada express and Jingdong home, and its market share in both fields is leading.

According to the prospectus information, about 35% of the funds raised will be used for technology research and development, about 40% for marketing and expansion of users, and the remaining funds will be used for general purposes of the company, including working capital and potential strategic investment and acquisition.

As dada gradually food and grass is full, the field of instant delivery also officially ushered in the second half. In the future, dada, hungry hummingbird and meituan flash send the Three Kingdoms killing drama, which will be staged soon.

Listed under heavy load, with accumulated loss of 5 billion in three years

In the past three years, dada groups revenue has maintained a rapid growth. From 2017 to 2019, dada groups revenue was RMB 1.218 billion, RMB 1.922 billion and RMB 3099.7 million respectively. In the second half of 2019, revenue increased by 90% year-on-year, and in the first quarter of 2020, revenue further accelerated growth by 109% year-on-year.

In the first quarter of 2020, dada express and jingdongjiajia accounted for 53.8% and 46.2% of the total net income respectively, and the proportion of the two main business lines in the total net income of the group is becoming more and more balanced.

But at the same time, losses are growing.

From 2017 to 2019, the groups net losses were rmb1449 million, rmb1878 million and rmb1669.8 million, respectively.

From 2017 to 2019, the companys costs in operation and support are respectively 1.593 billion yuan, 2.044 billion yuan and 2.846 billion yuan, of which the payment costs of riders are 1.526.7 billion yuan, 1.9183 billion yuan and 2.679 billion yuan, respectively. In addition, the rewards for riders in the same period are 127.4 million yuan, 223.7 million yuan and 192.2 million yuan.

In the first 12 months of March 31, 2020, dada had more than 634000 active riders, accumulating 822 million riders. Dada express business has covered more than 2400 counties, districts and cities in China, with a daily peak of about 10 million orders.

Another listing of Jingdong system enterprises

According to the prospectus, the existing shareholders Jingdong and Wal Mart intend to become the cornerstone investors of dada, subscribing US $60 million and US $30 million respectively.

JD is its largest external shareholder, holding 47.5%, Sequoia Capital China is its largest institutional shareholder, holding 10.5%, Wal Mart and DST respectively holding 10.0% and 8.7%.

According to the prospectus, from 2017 to 2019, dada groups revenue from JD, a major shareholder, accounted for 56.7%, 49.1% and 50.5% respectively, and its related party transactions were about 50%. From August 2018 to the end of the year, the whole year of 2019 and the first three months of 2020, Wal Mart accounted for 4.6%, 13% and 14.9% of the revenue respectively, with the increase of connected transactions.

On the one hand, more than 50% of connected transactions may cause investors to doubt the anti risk ability of dada group. In the future, or for a long time, its valuation will rise.

On the other hand, if one day we lose JDs blood supply, whether dada has the ability to deal with market competition independently is still a question mark. In the future, dada will have to solve the problem of creating diversified revenue sources.

In addition, the company has little interest bearing debt. As of March 2020, cash equivalents and short-term investment totaled 1.93 billion yuan.

Three powerful and multi hegemonic enterprises, fierce competition in instant delivery market

Behind the first share of instant delivery is the increasingly fierce competition in the instant delivery market.

First of all, the two giants, meituan and hungry, have already left.

Meituan launched its online running business in 2017 and launched meituan distribution in 2019. Recently, at the first anniversary of meituan distribution, meituan announced that the platform has 3.99 million active riders, covering 2800 cities at or above the county level, including more than 6.2 million categories of merchants such as catering, fresh food, supermarket, bookstore, flowers, etc.

In the first quarter of this years financial report, the new business increased by 4.85% to 4.168 billion yuan in the first quarter, including flash purchase and other new retail home business. It is not hard to find that non take out real-time delivery orders have become the growth engine of meituans new business.

Even if it has been successfully listed, the industry competition for dada is still huge. Whether it can stand firm and get enough cake is still unknown.

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Extended reading has inner flavor! Can drink and build base, astronaut urine or popular moon, academician Zheng Yulian: China is a bridge power, but not a bridge power, lost in the dispute of fake and rollover on software, another womens League was born. How long can it last? Source of this article: state editor: Zhang Zutao_ NT5054