0001410578-23-000785 | 20-F | XBRL Viewer

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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2022 shares
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-39305
Entity Registrant Name	Dada Nexus Ltd
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	22/F, Oriental Fisherman’s Wharf
Entity Address, Address Line Two	No. 1088 Yangshupu Road
Entity Address, Address Line Three	Yangpu District
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200082
Entity Address, Country	CN
Entity Common Stock, Shares Outstanding	1,021,923,242
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Auditor Firm ID	1113
Auditor Name	Deloitte Touche Tohmatsu Certified Public Accountants LLP
Auditor Location	Shanghai, the People’s Republic of China
Entity Central Index Key	0001793862
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Ordinary shares
Document and Entity Information
Title of 12(b) Security	Ordinary shares, par valueUS$0.0001 per share
Security Exchange Name	NASDAQ
No Trading Symbol Flag	true
American depositary shares
Document and Entity Information
Title of 12(b) Security	American depositary shares (each ADS represents four of our ordinary shares, par value US$0.0001 per share)
Trading Symbol	DADA
Security Exchange Name	NASDAQ
Business Contact
Document and Entity Information
Entity Address, Address Line One	22/F, Oriental Fisherman’s Wharf
Entity Address, Address Line Two	No. 1088 Yangshupu Road
Entity Address, Address Line Three	Yangpu District
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200082
Entity Address, Country	CN
Country Region	86
City Area Code	21
Local Phone Number	3165-7167
Contact Personnel Name	Beck Zhaoming Chen
Contact Personnel Email Address	ir@imdada.cn

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 1,233,974	$ 178,909	¥ 512,830
Restricted cash	433,895	62,909	58,020
Short-term investments	2,702,524	391,829	1,193,909
Accounts receivable, net of allowance for credit losses of nil and RMB 10,651 as of December 31,2021 and 2022, respectively	313,502	45,454	352,324
Inventories	8,826	1,280	6,344
Amount due from related parties	1,060,987	153,829	840,667
Prepayments and other current assets	606,502	87,935	479,017
Total current assets	6,360,210	922,145	3,443,111
Non-current assets:
Property and equipment, net	16,849	2,443	37,555
Goodwill	957,605	138,840	957,605
Intangible assets, net	1,665,320	241,449	332,317
Operating lease right-of-use assets	37,592	5,450	76,811
Long-term time deposits			400,000
Other non-current assets	8,223	1,192	33,181
Total non-current assets	2,685,589	389,374	1,837,469
TOTAL ASSETS	9,045,799	1,311,519	5,280,580
Current liabilities:
Short-term loan	100,000	14,499	100,000
Accounts payable	9,791	1,420	9,800
Payable to riders and drivers	794,320	115,166	580,983
Amount due to related parties	147,003	21,313	71,760
Accrued expenses and other current liabilities	931,943	135,119	620,406
Operating lease liabilities	24,460	3,546	35,759
Total current liabilities	2,007,517	291,063	1,418,708
Non-current liabilities:
Deferred tax liabilities	21,988	3,189	27,000
Non-current operating lease liabilities	16,574	2,404	46,243
Total non-current liabilities	38,562	5,593	73,243
TOTAL LIABILITIES	2,046,079	296,656	1,491,951
Commitments and Contingencies
SHAREHOLDERS' EQUITY
Ordinary shares (US$0.0001 par value, 2,000,000,000 and 2,000,000,000 shares authorized, 955,876,116 and 1,079,881,662 shares issued, 927,776,552 and 1,021,923,242 shares outstanding as of December 31, 2021 and 2022, respectively)	688	100	633
Additional paid-in capital	20,599,549	2,986,653	15,714,015
Accumulated deficit	(13,824,234)	(2,004,326)	(11,816,229)
Accumulated other comprehensive income (loss)	223,717	32,436	(109,790)
TOTAL SHAREHOLDERS' EQUITY	6,999,720	1,014,863	3,788,629
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	¥ 9,045,799	$ 1,311,519	¥ 5,280,580

CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 $ / shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 $ / shares
CONSOLIDATED BALANCE SHEETS
Accounts receivable, net of allowance for doubtful accounts \| ¥	¥ 10,651		¥ 0
Ordinary shares, par value \| $ / shares		$ 0.0001		$ 0.0001
Ordinary shares, shares authorized	2,000,000,000		2,000,000,000
Ordinary shares, shares issued	1,079,881,662		955,876,116
Ordinary shares, shares outstanding	1,021,923,242		927,776,552

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Net revenues (including related party revenues of RMB3,008,947, RMB2,339,013 and RMB3,928,088 for the years ended December 31, 2020, 2021 and 2022,	¥ 9,367,595	$ 1,358,174	¥ 6,866,262	¥ 5,739,989
Costs and expenses:
Operations and support	(5,743,010)	(832,658)	(5,139,102)	(4,721,311)
Selling and marketing	(4,747,926)	(688,385)	(3,427,909)	(1,848,730)
General and administrative	(408,771)	(59,266)	(400,397)	(498,826)
Research and development	(630,911)	(91,473)	(573,949)	(428,849)
Other operating expenses	(77,423)	(11,225)	(60,326)	(67,137)
Total costs and expenses	(11,608,041)	(1,683,007)	(9,601,683)	(7,564,853)
Other operating income	120,921	17,532	156,714	60,779
Loss from operations	(2,119,525)	(307,301)	(2,578,707)	(1,764,085)
Other income (expenses)
Interest expenses	(10,946)	(1,587)	(13,806)	(11,830)
Others, net	117,625	17,054	109,828	65,596
Total other income	106,679	15,467	96,022	53,766
Loss before income tax benefits	(2,012,846)	(291,834)	(2,482,685)	(1,710,319)
Income tax benefits	4,841	702	11,558	5,143
Net loss	(2,008,005)	(291,132)	(2,471,127)	(1,705,176)
Accretion of convertible redeemable preferred shares \| ¥				(375,649)
Net loss available to ordinary shareholders of Dada Nexus Limited	¥ (2,008,005)	$ (291,132)	¥ (2,471,127)	¥ (2,080,825)
Net loss per ordinary share:
Basic \| (per share)	¥ (1.98)	$ (0.29)	¥ (2.60)	¥ (3.12)
Diluted \| (per share)	¥ (1.98)	$ (0.29)	¥ (2.60)	¥ (3.12)
Weighted average shares used in calculating net loss per ordinary share:
Basic	1,015,265,686	1,015,265,686	950,697,557	667,844,843
Diluted	1,015,265,686	1,015,265,686	950,697,557	667,844,843
Net loss	¥ (2,008,005)	$ (291,132)	¥ (2,471,127)	¥ (1,705,176)
Other comprehensive income (loss)
Foreign currency translation adjustments, net of tax of nil	333,507	48,354	(39,487)	(209,963)
Total comprehensive loss	¥ (1,674,498)	$ (242,778)	¥ (2,510,614)	¥ (1,915,139)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Related party revenues	¥ 3,928,088	¥ 2,339,013	¥ 3,008,947
Foreign currency translation adjustments, tax value	¥ 0	¥ 0	¥ 0

- Definition

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07.1(c))
-URI https://asc.fasb.org/extlink&oid=120401555&loc=SL114874292-224272

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1(e))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY ¥ in Thousands, $ in Thousands	Ordinary shares CNY (¥) shares	Additional paid-in capital CNY (¥)	Subscription receivables CNY (¥)	Accumulated deficit CNY (¥)	Accumulated other comprehensive income (loss) CNY (¥)	CNY (¥) shares	USD ($) shares
Beginning balance at Dec. 31, 2019	¥ 237	¥ 309,102	¥ (35)	¥ (7,639,926)	¥ 139,660	¥ (7,190,962)
Beginning balance (in shares) at Dec. 31, 2019 \| shares	369,290,629
Increase (decrease) in stockholders' equity
Issuance of ordinary shares for public offerings, net of issuance costs of RMB 39,316	¥ 87	5,173,926				5,174,013
Issuance of ordinary shares for public offerings, net of issuance costs of RMB 39,316 (in shares) \| shares	125,491,548
Conversion of preferred shares upon completion of initial public offering ("IPO")	¥ 311	10,968,364				10,968,675
Conversion of preferred shares upon completion of initial public offering ("IPO") (in shares) \| shares	439,646,388
Share issued for exercise of stock options and vest of restricted share units	¥ 4	6,900				6,904
Share issued for exercise of stock options and vest of restricted share units (in shares) \| shares	7,021,620
Collection of subscription receivable			¥ 35			35
Share-based compensation		360,078				360,078
Net loss				(1,705,176)		(1,705,176)
Accretion of convertible redeemable preferred shares		(375,649)				(375,649)
Foreign currency translation adjustments					(209,963)	(209,963)
Ending balance at Dec. 31, 2020	¥ 639	16,442,721		(9,345,102)	(70,303)	7,027,955
Ending balance (in shares) at Dec. 31, 2020 \| shares	941,450,185
Increase (decrease) in stockholders' equity
Share issued for exercise of stock options and vest of restricted share units	¥ 12	31,742				31,754
Share issued for exercise of stock options and vest of restricted share units (in shares) \| shares	14,425,931
Repurchase of ordinary shares	¥ (18)	(968,391)				(968,409)
Repurchase of ordinary shares (in shares) \| shares	(28,099,564)
Share-based compensation		207,943				207,943
Net loss				(2,471,127)		(2,471,127)
Foreign currency translation adjustments					(39,487)	(39,487)
Ending balance at Dec. 31, 2021	¥ 633	15,714,015		(11,816,229)	(109,790)	3,788,629
Ending balance (in shares) at Dec. 31, 2021 \| shares	927,776,552
Increase (decrease) in stockholders' equity
Issuance of ordinary shares for public offerings, net of issuance costs of RMB 39,316	¥ 69	5,057,691				5,057,760
Issuance of ordinary shares for public offerings, net of issuance costs of RMB 39,316 (in shares) \| shares	109,215,017
Share issued for exercise of stock options and vest of restricted share units	¥ 9	10,656				10,665
Share issued for exercise of stock options and vest of restricted share units (in shares) \| shares	19,069,453
Repurchase of ordinary shares	¥ (23)	(401,543)				¥ (401,566)	$ (60,145)
Repurchase of ordinary shares (in shares) \| shares	(34,137,780)					(34,137,780)	(34,137,780)
Share-based compensation		218,730				¥ 218,730
Net loss				(2,008,005)		(2,008,005)	$ (291,132)
Foreign currency translation adjustments					333,507	333,507	48,354
Ending balance at Dec. 31, 2022	¥ 688	¥ 20,599,549		¥ (13,824,234)	¥ 223,717	¥ 6,999,720	$ 1,014,863
Ending balance (in shares) at Dec. 31, 2022 \| shares	1,021,923,242

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) EQUITY (Parenthetical) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020 CNY (¥)
Ordinary shares
Issuance cost	¥ 39,316

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Cash flows from operating activities:
Net loss	¥ (2,008,005)	$ (291,132)	¥ (2,471,127)	¥ (1,705,176)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	496,958	72,052	192,567	201,272
Share-based compensation	218,730	31,713	207,943	360,078
Foreign exchange loss (gain)	(7,419)	(1,076)	1,126
Loss (gain) from disposal of property and equipment	546	79	(133)	82
Fair value change of wealth management product	(2,175)	(315)
Inventory write-down	297	43	176	413
Valuation allowance for doubtful accounts	10,651	1,544
Changes in operating assets and liabilities:
Accounts receivable	28,171	4,084	51,260	(365,350)
Inventories, net	(2,779)	(403)	(1,561)	(1,937)
Amount due from related parties	(220,319)	(31,943)	(194,326)	(337,659)
Prepayments and other current assets	(53,236)	(7,718)	(65,491)	(84,995)
Operating lease right-of-use assets	39,219	5,686	30,309	17,890
Other non-current assets	(4,449)	(645)	(20,467)	(6,785)
Accounts payable	(9)	(1)	(4,046)	3,922
Notes payable			(170,000)	170,000
Payable to riders and drivers	213,337	30,931	(136,513)	336,155
Amount due to related parties	75,243	10,909	18,842	(29,882)
Accrued expenses and other current liabilities	315,779	45,784	(55,321)	357,773
Deferred tax liabilities	(5,012)	(727)	(11,558)	(5,143)
Operating lease liabilities	(40,968)	(5,940)	(29,260)	(18,865)
Net cash used in operating activities	(945,440)	(137,075)	(2,657,580)	(1,108,207)
Cash flows from investing activities:
Proceeds from disposal of short-term investments	9,857,696	1,429,232	2,439,391	7,313,119
Purchase of short-term investments	(10,833,496)	(1,570,709)	(2,871,407)	(7,119,080)
Purchase of long-term time deposits				(400,000)
Purchase of property and equipment and intangible assets	(3,743)	(543)	(16,880)	(23,890)
Proceeds from disposal of property and equipment	917	133	166	94
Loan provided to third party companies	(1,103,500)	(159,992)	(446,223)
Loan settled by third party companies	1,055,733	153,067	208,290
Net cash used in investing activities	(1,026,393)	(148,812)	(686,663)	(229,757)
Cash flows from financing activities:
Proceeds from short-term loan	1,118,000	162,095	100,000	600,000
Repayment of short-term loan	(1,118,000)	(162,095)	(600,000)
Proceeds from public offerings, net of issuance costs paid of RMB 38,821				5,174,508
Issuance of ordinary shares	3,451,921	500,481
Proceeds from exercise of share options	10,665	1,546	31,754	6,904
Repurchase of ordinary shares	(401,566)	(58,222)	(968,409)
Proceeds from (payment of) stock sold on behalf of employees	(6,166)	(894)	(117,850)	110,103
Proceeds from subscription receivable				35
Net cash provided by (used in) financing activities	3,054,854	442,911	(1,554,505)	5,891,550
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash	13,998	2,029	(51,457)	(188,664)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,097,019	159,053	(4,950,205)	4,364,922
Cash and cash equivalents and restricted cash, beginning of the year	570,850	82,765	5,521,055	1,156,133
Cash and cash equivalents and restricted cash, end of the year	¥ 1,667,869	$ 241,818	¥ 570,850	¥ 5,521,055

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash and cash equivalents	¥ 1,233,974		¥ 512,830	¥ 5,461,264	$ 178,909
Restricted cash	433,895		58,020	59,791	62,909
Total cash, cash equivalents, and restricted cash	1,667,869		570,850	5,521,055	$ 241,818
Supplemental disclosure for cash flow information
Cash paid for interest	10,621	$ 1,540	5,013	21,718
Cash paid for income tax	171	25
Supplemental disclosure of non-cash investing and financing activities:
Accretion of convertible redeemable preferred shares				375,649
Payables related to property and equipment	(1,799)	(261)	(655)	¥ (1,321)
Intangible assets acquired from JD investment	¥ (1,605,839)	$ (232,825)
Issuance cost			¥ 38,821

ORGANIZATION AND NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2022

ORGANIZATION AND NATURE OF OPERATIONS

ORGANIZATION AND NATURE OF OPERATIONS

1. ORGANIZATION AND NATURE OF OPERATIONS

Dada Nexus Limited (the “Company”) was incorporated under the laws of the Cayman Islands on July 8, 2014. The Company through its wholly-owned subsidiaries, VIE and VIE’s subsidiaries (collectively, the “Group”) primarily provides delivery services and marketplace services to its customers through its mobile platforms, websites and mini programs. The Group’s principal operations and geographic markets are in the People’s Republic of China (“PRC”).

As of December 31, 2022, the Company’s major subsidiaries, VIE and VIE’s subsidiaries (“consolidated VIEs”) are as follows:


			Percentage
			of direct
			or indirect
	Place of	Date of incorporation /	economic
Name of Company	incorporation	acquisition	ownership		Principal activities
Subsidiaries
Dada Group (HK) Limited (“Dada HK”)	Hong Kong	July 24, 2014	100	%	Investment holding
Dada Glory Network Technology (Shanghai) Co., Ltd. (“Dada Glory”)	PRC	November 7, 2014	100	%	Providing services in connection with on-demand delivery platform (“Dada Now”)
Shanghai JD Daojia Yuanxin Information Technology Co., Ltd. (“Shanghai JDDJ”)	PRC	April 26, 2016	100	%	Providing services in connection with on-demand retail platform (“JDDJ”)
VIE
Shanghai Qusheng Internet Technology Co. Ltd. (“Shanghai Qusheng”)	PRC	July 2, 2014	100	%	Holding value-added telecommunications services license of Dada Now and maintaining Dada Now website
VIE’s Subsidiary
Shanghai JD Daojia Youheng E-Commerce Information Technology Co., Ltd. (“JDDJ Youheng”)	PRC	December 3, 2015	100	%	Holding value-added telecommunications services license of JDDJ and maintaining JDDJ website

PRINCIPAL ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

PRINCIPAL ACCOUNTING POLICIES

PRINCIPAL ACCOUNTING POLICIES

2. PRINCIPAL ACCOUNTING POLICIES

2.1 Basis of presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the years presented.

2.2 Basis of consolidation

The financial statements include the financial statements of the Company, its subsidiaries, VIE and VIE’s subsidiaries in which it has a controlling financial interest. The results of the subsidiaries, VIE and VIE’s subsidiaries are consolidated from the date on which the Company obtained control and continue to be consolidated until the date that such control ceases. All intercompany balances and transactions between the Group, its subsidiaries, VIE and VIE’s subsidiaries have been eliminated in consolidation.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.2 Basis of consolidation - continued

VIE Arrangements

In order to comply with the PRC laws and regulations which prohibit or restrict foreign control of companies involved in provision of internet content and other restricted businesses, the Group operates its websites and other restricted businesses in the PRC through Shanghai Qusheng and its wholly-owned subsidiary, JDDJ Youheng. Shanghai Qusheng is an entity whose equity interests are held by certain management members and shareholders of the Group (“Nominee Shareholders”). On November 14, 2014, Dada Glory entered into a series of contractual agreements with Shanghai Qusheng and its shareholders, which were amended subsequently primarily for change of Nominee Shareholders. The contractual agreements were further amended on December 28, 2022. Currently, Dada Glory has 50% direct ownership of Qusheng, and the remaining 50% ownership was held by new Nominee Shareholders, which is an entity held by three individuals and management of the Group. The following is a summary of the agreements which allow Dada Glory to exercise effective control over Shanghai Qusheng.

Exclusive Business Cooperation Agreement

Pursuant to the exclusive business cooperation agreement between Dada Glory and the VIE, Dada Glory has the exclusive right to provide the VIE with complete business support and technical and consulting services, including but not limited to technical services, network support, business consultations, intellectual property licenses, equipment or leasing, marketing consultancy, system integration, product research and development, and system maintenance. Without Dada Glory’s prior written consent, the VIE may not accept any consultations and/or services regarding the matters contemplated by this agreement provided by any third party during the term of the agreement. The VIE agrees to pay Dada Glory service fees at an amount equals to 100% of the net income generated by the VIE, which should be paid on a monthly basis. However, no such service fees have been paid during the periods as the VIE has been in net loss position. Dada Glory has the exclusive ownership of all the intellectual property rights created as a result of the performance of the exclusive business cooperation agreement. To guarantee the VIE’s performance of its obligations thereunder, Nominee Shareholders of the VIE have pledged all of their equity interests in the VIE to Dada Glory pursuant to the share pledge agreement. The exclusive business cooperation agreement has an initial term of 10 years and shall be extended if confirmed in writing by Dada Glory prior to the expiration. The extended term shall be determined by Dada Glory, and the VIE shall accept such extended term unconditionally.

Exclusive Option Agreements

Pursuant to the exclusive option agreements, each of Nominee Shareholders of the VIE has irrevocably granted Dada Glory, or any person designated by Dada Glory, an exclusive option to purchase all or part of its equity interests in the VIE. Dada Glory may exercise such options at a price equal to the lowest price as permitted by applicable PRC laws at the time of transfer of equity. The VIE and Nominee Shareholders of the VIE covenant that, without Dada Glory’s prior written consent, they will not, among other things, (i) supplement, change or amend the VIE’s articles of association and bylaws, (ii) increase or decrease the VIE’s registered capital or change its structure of registered capital, (iii) create any pledge or encumbrance on their equity interests in the VIE, other than those created under the equity interest pledge agreement, (iv) sell, transfer, mortgage, or dispose of their legal or beneficial interests in and any assets of the VIE and any legal or beneficial interests, (v) enter into any material contract by the VIE, except in the ordinary course of business, or (vi) merge or consolidate the VIE with any other entity. The exclusive option agreement has an initial term of ten years, and at the end of the initial term shall be renewed for a further term as specified by Dada Glory or terminated by Dada Glory in its sole discretion.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.2 Basis of consolidation - continued

VIE Arrangements - continued

Share Pledge Agreements

Pursuant to the share pledge agreements, each of Nominee Shareholders of the VIE has pledged the security interest in their respective equity interests in the VIE, representing 50% equity interests in the VIE in aggregate to Dada Glory, to guarantee performance by Nominee Shareholders of their obligations under the powers of attorney, the exclusive business cooperation agreement and the exclusive option agreement, as well as the performance by the VIE of its obligations under the exclusive business cooperation agreement and the exclusive option agreement. In the event of a breach by the VIE or any of its shareholders of contractual obligations under these contractual arrangements, Dada Glory, as pledgee, will have the right to take possession of and dispose of the pledged equity interests in the VIE and will have priority in receiving the proceeds from such disposal. Nominee Shareholders of the VIE also covenant that, without the prior written consent of Dada Glory, they shall not transfer or agree to other’s transfer of the pledged equity interests, create or allow any new pledge or any other encumbrance on the pledged equity interests. The equity interest pledge agreement will remain effective until the contractual obligations are fully fulfilled and terminated. During the equity pledge period, Dada Glory is entitled to all dividends and other distributions generated by the VIE.

Powers of Attorney

Pursuant to the power of attorney, each of nominee shareholders of the VIE has executed a power of attorney to irrevocably authorize Dada Glory, or any person designated by Dada Glory, to act as its attorney-in-fact to exercise all of its rights as a shareholder of the VIE, including, but not limited to, the right to propose, convene and attend shareholders’ meetings, (ii) vote on any resolution on behalf of the shareholders that require the shareholders to vote under PRC law and the VIE’s articles of association, such as the sale, transfer, pledge and disposal of all or part of a shareholder’s equity interest in the VIE, and designate and appoint the VIE’s legal representative, director, supervisor, chief executive officer and other senior management members on behalf of the shareholders. The powers of attorney will remain effective until such shareholder ceases to be a shareholder of the VIE or otherwise instructed by Dada Glory.

U.S. GAAP provides guidance on the identification of VIE and financial reporting for entities over which control is achieved through means other than voting interests. The Group evaluates each of its interests in an entity to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affect the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE.

The irrevocable powers of attorney described above have conveyed all shareholder rights held by the VIE’s shareholders to Dada Glory, including the right to appoint board members who nominate the general managers of the VIE to conduct day-to-day management of the VIE’s businesses, and to approve significant transactions of the VIE. The exclusive option agreements provide Dada Glory with a substantive kick-out right of the VIE shareholders through an exclusive option to purchase all or any part of the shareholders’ equity interest in the VIE at the lowest price permitted under the PRC laws then in effect. In addition, through the exclusive business cooperation agreement, Dada Glory has established the right to receive benefits from the VIE that could potentially be significant to the VIE, and through the share pledge agreement, Dada Glory has, in substance, an obligation to absorb losses of the VIE that could potentially be significant to the VIE. As these contractual arrangements allow the Group to effectively control the VIE and to derive substantially all of the economic benefits from it, the Group has consolidated the VIE.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.2 Basis of consolidation - continued

VIE Arrangements - continued

Risks in relation to the VIE structure

The Company believes that the contractual arrangements amongst Dada Glory, Shanghai Qusheng and their respective shareholders are in compliance with PRC law and are legally enforceable. The Nominee Shareholders of Shanghai Qusheng are also shareholders of the Company and therefore have no current interest in seeking to act contrary to the contractual arrangements. However, Shanghai Qusheng and their Nominee Shareholders may fail to take certain actions required for the Company’s business or to follow the Company’s instructions despite their contractual obligations to do so. Furthermore, if Shanghai Qusheng or their Nominee Shareholders do not act in the best interests of the Company under the contractual arrangements and any dispute relating to these contractual arrangements remains unresolved, the Company will have to enforce its rights under these contractual arrangements through the operations of PRC law and courts and therefore will be subject to uncertainties in the PRC legal system. All of these contractual arrangements are governed by PRC law and provided for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements, which may make it difficult to exert effective control over Shanghai Qusheng, and its ability to conduct the Company’s business may be adversely affected.

The following amounts and balances of the consolidated VIE were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions:


	As of December 31,
	2021	2022
	RMB	RMB
Cash and cash equivalents	3,961	13,968
Accounts receivable, net	760	373
Amount due from related parties	476	2,688
Prepayments and other current assets	3,287	4,122
Property and equipment, net	245	84
Intangible assets, net	10,938	9,302
Operating lease right-of-use assets	791	—
Other non-current assets	93	92
Total assets	20,551	30,629

Payable to riders and drivers	404	304
Amount due to related parties	32	966
Accrued expenses and other current liabilities	12,542	15,559
Operating lease liabilities	192	—
Non-current operating lease liabilities	412	—
Total liabilities	13,582	16,829


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net Revenues	3,293	13,104	15,769
Net loss	(49,741)	(58,641)	(36,743)
Net cash provided by operating activities	535	4,308	10,007
Net cash used in investing activities	(59)	(859)	—

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.2 Basis of consolidation - continued

VIE Arrangements - continued

The VIE contributed approximately 0.1%, 0.2% and 0.2% of the Group’s consolidated net revenues for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021 and 2022, the VIE accounted for approximately 0.4% and 0.3% of the consolidated total assets, and approximately 0.9% and 0.8% of the consolidated total liabilities, respectively.

There are no terms in any arrangements, other than the capital contribution for the 50% interests directly held by Dada Glory, considering both explicit arrangements and implicit variable interests that require the Group or its subsidiaries to provide financial support to the VIE. However, if the VIE was ever to need financial support, the Group or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to its VIE through loans to the shareholders of the VIE or entrustment loans to the VIE.

The Group believes that there are no assets held in the consolidated VIE that can be used only to settle obligations of the VIE, except for paid-in capital, additional paid-in capital (“APIC”) and the PRC statutory reserves. As the consolidated VIE is incorporated as a limited liability company under the PRC Company Law, creditors of the VIE do not have recourse to the general credit of the Group for any of the liabilities of the consolidated VIE.

Relevant PRC laws and regulations restrict the VIE from transferring a portion of their net assets, equivalent to the balance of their paid-in capital, APIC and PRC statutory reserve, to the Group in the form of loans and advances or cash dividends.

2.3 Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Group’s management reviews these estimates based on information that is currently available. Changes in facts and circumstances may cause the Group to revise its estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements mainly include the useful lives of property and equipment and intangible assets, allowance for credit losses, assumptions used to measure the impairment of goodwill, property and equipment and intangible assets, assumptions impacting the valuation of ordinary shares and share options, and realization of deferred tax assets.

2.4 Functional currency and foreign currency translation

The Group uses Renminbi (“RMB”) as its reporting currency. The functional currency of the Company is the United States dollar (“US$” or “USD”). The functional currency of the Company’s subsidiaries, VIE and VIE’s subsidiaries is RMB or USD as determined based on the economic facts and circumstances.

Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Foreign currency denominated monetary assets and liabilities are re-measured at the balance sheet date exchange rate. The resulting exchange differences are included in the comprehensive loss.

Assets and liabilities of the Company and its subsidiaries with functional currency other than RMB are translated into RMB at fiscal year-end exchange rates. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Income and expense items are translated at average exchange rates during the fiscal year. Translation adjustments arising from these are reported as foreign currency translation adjustments and are shown as accumulated other comprehensive income (loss).

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.5 Convenience translation

The Group’s business is primarily conducted in China and almost all of its revenues are denominated in RMB. However, periodic reports made to shareholders will include current period amounts translated into USD using the then current exchange rates, for the convenience of the readers. Translations of balances in the consolidated balance sheets, consolidated statements of operations and comprehensive loss and consolidated statements of cash flows from RMB into USD as of and for the year ended December 31, 2022 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB6.8972 representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 30, 2022. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2022, or at any other rate.

2.6 Cash and cash equivalents

Cash and cash equivalents primarily consist of cash on hand and cash in bank which is highly liquid and unrestricted as to withdrawal and use.

2.7 Restricted cash

The Group’s restricted cash mainly represents cash received from consumers and reserved in bank supervised accounts for payments to retailers on the on-demand retail platform.

2.8 Short-term investments

Short-term investments include (i) wealth management products with variable interest rates and will mature within one year; (ii) time deposits with original maturities longer than three months but less than one year. Prior to 2022, the Group classifies its investments in wealth management products as held-to-maturity securities, as the Group expects to receive all the principles and has the positive intent and ability to hold those securities to maturity. Starting from 2022, the Group elects the fair value option to record new investments in wealth management products with variable interest rates and deposits indexed to foreign exchange with maturities less than one year at fair value in accordance with ASC 825 Financial Instruments.Changes in the fair value are reflected in the consolidated statements of operations and comprehensive loss. The Group also holds some deposits that have fixed interest rates and they are classified as held-to-maturity when the Group has the positive intent and ability to hold the securities to maturity, and are recorded at amortized cost. The gains recognized from wealth management products are RMB7,855, RMB14,524, and RMB19,865 for the years ended December 31, 2020, 2021 and 2022, respectively.

2.9 Accounts receivable, net

Accounts receivable mainly consists of amount due from the Group’s customers, which is recorded net of allowance for credit losses.On January 1, 2021, the Group adopted Accounting Standards Update No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”) using the modified retrospective transition method. ASC 326 replaces the incurred loss impairment model with a forward-looking current expected credit loss (“CECL”) methodology, which results in more timely recognition of credit losses. The Group has developed a CECL model based on historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, and other factors that may affect its ability to collect from customers. The cumulative effect from the adoption as of January 1, 2021 was immaterial to the financial statements. Allowance of nil and RMB10,651 was recognized for accounts receivable as of December 31, 2021 and 2022, respectively. Provision for credit loss of nil and RMB10,651 was recorded for the year ended December 31, 2021 and 2022, respectively.

2.10 Inventories

Inventories, consisting of products available for sale, are stated at the lower of cost or market value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated market value due to slow-moving merchandise and damaged goods, which is determined based upon factors such as historical and forecasted consumer demand, and promotional environment.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.11 Property and equipment, net

Property and equipment is stated at cost less accumulated depreciation and impairment. Property and equipment is depreciated at rates sufficient to write off its costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follows:


Category		Estimated useful lives
Computer equipment		3-4 years
Office facilities		3-5 years
Vehicles		5 years
Software		3-5 years
Leasehold improvement		Over the shorter of the expected useful life or the lease term

Repairs and maintenance costs are charged to operating expenses as incurred, whereas the costs of renewals and betterment that extends the useful lives of property and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the other operating income or expenses of consolidated statements of operations and comprehensive loss.

2.12 Intangible assets, net

Intangible assets purchased are recognized and measured at cost upon acquisition. The Group’s intangible assets primarily comprise of business cooperation agreement (“BCA”), non-compete commitment (“NCC”), technology, trademark and domain name arising from the Group’s acquisition of JDDJ business from JD.com (“JD”) in 2016 and BCA arising from JD investment in 2022, which are recognized and measured at fair value based on a valuation upon acquisition. Following the initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment losses. The identifiable intangible assets acquired are amortized on a straight-line basis over the respective useful lives as follows:


Category		Amortization Years
BCA		5-7
NCC		7
Technology		3.7
Trademark and Domain Name		9-9.7

2.13 Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired as a result of the Group’s acquisition of JDDJ business from JD occurred in 2016 and there is no change to the carrying amount of goodwill as of December 31, 2021 and 2022. Goodwill is not amortized but is reviewed at least annually for impairment or earlier, if any indication of impairment exists.

In evaluation of goodwill impairment, the Group performs a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Based on the qualitative assessment, if it is more likely than not that the fair value of a reporting unit is less than the carrying amount, the Group compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess.

The Group has determined it has only one reporting unit and applied quantitative assessment in its annual goodwill impairment analysis as of December 31 of each year. No goodwill impairment was recorded for 2020, 2021 and 2022 as the fair value of the reporting unit significantly exceeded its carrying value at each assessment date.

2. PRINCIPAL ACCOUNTING POLICIES – continued

2.13 Goodwill – continued

Application of a goodwill impairment test in quantitative analysis requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit.

2.14 Fair value measurement

Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it transacts and considers assumptions that market participants use when pricing the asset or liability.

The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities.

The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates.

As of December 31, 2022, investments in wealth management product are measured using Level 2 input and recorded at fair value initially and on a recurring basis in periods subsequent to their initial recognition. The fair values of investments in wealth management products are measured based on currently redeemable prices offered by the selling bank, which are considered as level 2 inputs.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.15 Revenue recognition

The Group derives its revenues principally from merchants’, individual senders’ and retailers’ use of the Group’s core platforms in connection with on-demand retail platform services and on-demand delivery services. Revenue is stated net of value added tax, discounts and return allowances.

Services

The Group arranges for on-demand delivery services to be provided through Dada Now platform where it assists the customer, a merchant or an individual sender, in finding a rider to complete a delivery requested by the customer. The Group concludes that it acts as an agent in these transactions as it is not responsible for fulfilling the promise to provide the delivery services, nor does the Group have the ability to control the related services. The Group does not have the ability to control the services provided by riders due to the following: (i) the Group does not pre-purchase or otherwise obtain control of the riders’ services prior to their transfer to the customers; (ii) the Group does not guarantee an order could be taken by a rider; (iii) the Group cannot direct the riders to accept, decline or disregard a transaction request and (iv) the Group’s platform services do not include the delivery services provided to the customers by the riders. The service fee earned by the Group is the difference between the amount paid by the customer based on an upfront quoted fare and the amount earned by the rider based on expected delivery time, distance and other factors, which are both fixed at the time a transaction is entered into with a customer. The Group may record a loss from a transaction when an upfront quoted fare offered to the customer is less than the amount the Group is committed to paying to the rider. The revenue is recognized on a net basis at the point of delivery of merchandise. The loss on this type of transactions is recorded in operations and support costs in the consolidated statements of operations and comprehensive loss, as it is not related to any other current, previous or future transactions with the customer and in substance, is an expense paid to the rider. The losses included in operations and support costs were RMB76,989, RMB95,281 and RMB85,177 for the years ended December 31, 2020, 2021 and 2022, respectively.

The Group provides on-demand retail platform services on JDDJ platform. The service revenues primarily consist of commission fees charged to retailers for participating in the Group’s online marketplace, where the Group acts as an agent and its performance obligation is to facilitate the retailers’ online sales of their goods and services through JDDJ. The Group is not primarily obligated to the consumers, does not take inventory risk, and does not have latitude over pricing of the merchandise. Upon successful sales, the Group charges the retailer a fixed rate commission fee based on the sales amount. Commission fee revenues are recognized on a net basis at the point of delivery of merchandise.

In addition, the Group fulfills the delivery needs of retailers on JDDJ and other business customers on Dada Now by utilizing the Group’s network of registered riders on Dada Now. Under this type of services, the Group enters into agreements with retailers and other business customers, which enforce the Group’s acceptance of all the related delivery requests at the prices stipulated in the agreements. The Group has determined that it acts as the principal in these transactions as the Group is primarily responsible for the delivery of merchandise and has the ability to control the related services. The Group has the ability to control the services provided by riders as it is responsible for and guarantees identifying and directing riders that meet the quality criteria stipulated in the agreements to complete the deliveries requested by retailers or other business customers. Additionally, the Group has ultimate control over the amounts charged to the customers. Although in this type of services, the riders still have the ability to accept, decline or disregard a delivery assignment, it is the Group’s responsibility to find a replacement and complete the delivery timely. Revenues resulting from these services are recognized on a gross basis at a fixed rate or a pre-determined amount for each completed delivery, with the amounts paid to the riders recorded in operations and support costs. These revenues are recognized at the point of delivery of merchandise.

The Group also provides marketing and promotion services to its customers on JDDJ platform. Revenue is recognized when service is rendered. Marketing and promotion services revenues are recognized on a gross basis over a period of time.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.15 Revenue recognition – continued

Other services provided by the Group comprise packaging services provided to retailers on JDDJ. Revenue is recognized when service is rendered at the point in time.

Goods Sales

The Group operates its own e-commerce business and sells delivery equipment and other merchandise on Dada Now. Revenue is recognized on a gross basis as the Group is acting as a principal in these transactions, is responsible for fulfilling the promise to provide the specified merchandise and also has pricing discretion. The Group recognizes revenues net of discounts and return allowances when the goods are delivered to the customers.

Incentive programs

Customer incentives

The Group offers various incentive programs to merchants, individual senders and business customers in the form of coupons or volume-based discounts that are recorded as reduction of revenue as the Group does not receive a distinct good or service in consideration.

Rider incentives

The Group offers various incentive programs to riders, primarily in the form of volume-based incentives. The riders are not the Group’s customers as they do not pay for their use of the Group’s platform in any form. Therefore, for transactions where the Group acts as an agent and recognizes revenue on a net basis, the related rider incentives are recorded as a reduction of revenue. The incentive amount in excess of the related revenue is included in operations and support costs. For transactions where the Group acts as a principal and recognizes revenue on a gross basis, the related rider incentives are included in operations and support costs. For the years ended December 31, 2020, 2021 and 2022, incentives to riders recorded in operations and support costs were RMB143,916, RMB88,494 and RMB79,238, respectively, including incentives attributable to transactions where the Group acts as the principal of RMB114,229, RMB64,261 and RMB72,519, respectively.

Consumer incentives

The consumer incentives are offered to promote the Group’s platform or brand owners’ products in the form of promotion coupon on JDDJ, which are valid only during a limited period of time. These incentives are provided at the Group’s discretion and are not contractually required by the retailers or brand owners. These incentives also do not reduce the overall pricing of the services provided by the Group. As the Group has no performance obligation to consumers, who are not the Group’s customers,consumer incentives offered to promote the Group’s platform are recognized as selling and marketing expenses, and consumer incentives offered on brand owners’ products are recognized as operation and support costs. For the years ended December 31, 2020, 2021 and 2022, consumer incentives recorded as selling and marketing expenses and operation and support costs were RMB1,166,032 and RMB321,178, RMB2,223,109 and RMB715,883 and RMB2,782,585 and RMB1,013,636, respectively.

All the consumer incentives granted can be categorized into (i) incentives granted concurrent with a purchase transaction and (ii) incentives granted not concurrent with a purchase transaction. When the incentive is granted concurrent with a purchase transaction, expenses or reduction of revenue are accrued, in the most likely amount to be earned, as the related transactions are recorded. Since such incentives are generally earned over a very short period of time, there is limited uncertainty when estimating the expenses to be accrued or variable consideration to be recorded as a reduction of revenue. When the incentive (i.e. a coupon) is granted not concurrent with a purchase transaction, expenses or reduction of revenue are recognized upon the redemption of such incentive.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.15 Revenue recognition - continued

Disaggregation of revenues

For the years ended December 31, 2020, 2021 and 2022, all of the Group’s revenues were generated in the PRC. The disaggregated revenues by revenue streams were as follows:


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Dada Now: ⁽¹⁾
Services	3,377,653	2,753,458	3,082,928
Sales of goods	56,925	67,254	74,642
Subtotal	3,434,578	2,820,712	3,157,570
JDDJ: ⁽²⁾
Services	2,305,411	4,045,550	6,205,180
Sales of goods	—	—	4,845
Subtotal	2,305,411	4,045,550	6,210,025
Total	5,739,989	6,866,262	9,367,595

Notes:

(1)	Includes net revenues from on-demand delivery services and freight services. Revenue from on-demand delivery services for which the Group acts as a principal was RMB763,699, RMB1,681,121 and RMB2,343,206 for the years ended December 31, 2020, 2021 and 2022, respectively.

(2)

Includes net revenues from (i) commission fee, and online advertising and marketing services of RMB1,211,549, RMB2,275,306 and RMB3,831,218 for the years ended December 31, 2020, 2021 and 2022, respectively; and (ii) delivery services and others of RMB1,093,862, RMB1,770,244 and RMB2,373,962 for the years ended December 31, 2020, 2021 and 2022, respectively.

Contract balances

The remaining unsatisfied performance obligation as of December 31, 2020, 2021 and 2022 was immaterial.

Timing of revenue recognition may differ from the timing of invoicing customers. Accounts receivable represents amounts invoiced and revenues recognized prior to invoicing when the Group has satisfied its performance obligation and has the unconditional right to payment.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.15 Revenue recognition - continued

The Group receives advance payments from customers pursuant to the agreements with certain customers before the services or products are provided, which is recorded as advance for online marketing services or goods sale included in the accrued expenses and other current liabilities on the consolidated balance sheets. The opening and closing balances of the Group’s advances from customers are as follows:


		Advances from
		Customers
		RMB
Ending Balance as of January 1, 2020		15,357
Increase, net		10,894
Ending Balance as of December 31, 2020		26,251
Increase, net		23,264
Ending Balance as of December 31, 2021		49,515
Increase, net		44,407
Ending Balance as of December 31, 2022		93,922

The opening balances of RMB15,357, RMB26,251 and RMB49,515 were recognized as revenue in the years ended December 31, 2020, 2021 and 2022, respectively.

Practical expedients and exemptions

The Group elects not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

2.16 Operations and support

Operations and support costs primarily consist of (i) riders’ and drivers’ remuneration and incentives to fulfil the Group’s delivery orders and picking orders, (ii) expenses incurred in providing customer and rider care services or the service fee charged by external customer service providers, (iii) expenses charged by outsourced delivery agencies, (iv) expenses incurred in providing online marketing services, (v) transaction fees charged by third-party payment platform, and (vi) packaging cost as well as other operations and support costs directly attributed to the Group’s principal operations.

2.17 Selling and marketing

Selling and marketing expenses primarily consist of incentive payments to consumers, advertising and marketing expenses, payroll and related expenses for employees involved in selling and marketing functions, as well as the expenses incurred for facilities and equipment, such as depreciation expenses, rental and others. The advertising and marketing expenses amounted to RMB247,858, RMB574,569 and RMB944,471 for the years ended December 31, 2020, 2021 and 2022, respectively.

2.18 Research and development

Research and development expenses primarily consist of technology infrastructure expenses, payroll and related expenses for employees involved in platform development and internal system support, charges for the usage of the server and computer equipment, and editorial content.

2.19 Other operating expenses

Other operating expenses primarily consist of purchase price of merchandise sold on Dada Now.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.20 Leases

As a lessee

The Group leases office space and warehouse facilities in different cities in PRC under non-cancellable operating lease agreements that expire at various dates through October 2024. The Group elected the short-term lease exemption for all contracts with an original lease term of 12 months or less.

Under ASC 842, the Group determines whether an arrangement constitutes a lease and records lease liabilities and ROU assets on its consolidated balance sheets at the lease commencement. The Group measures the operating lease liabilities at the commencement date based on the present value of remaining lease payments over the lease term, which is computed using the Group’s incremental borrowing rate, an estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the lease term. The Group measures the operating lease ROU assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing operating lease expense based on lease payments on a straight-line basis over the lease term after the lessor makes the underlying asset available to the Group. Some of the Group’s lease contracts include options to extend the leases for an additional period which has to be agreed with the lessors based on mutual negotiation. After considering the factors that create an economic incentive, the Group does not include renewal option periods in the lease term for which it is not reasonably certain to exercise.

Sublease

The Group subleases warehouses to its merchants on Dada Now platform under operating leases. In accordance with the provisions of ASC 842, since the Group has not been relieved from the responsibilities as the primary obligor of the warehouse head lease, the Group cannot net the sublease income against its lease payment to calculate the lease liability and ROU asset. The Group’s practice has been, and will continue to, straight-line the sub-lease income over the term of the sublease. For the years ended December 31, 2020, 2021 and 2022, gross sublease income of the Group was RMB16,086, RMB23,304, and RMB5,823, respectively, which was included in net revenues in the consolidated statements of operations and comprehensive loss.

2.21 Share-based compensation

The Group accounts for share options and restricted share units granted to employees, directors, and consultants under ASC 718, “Stock Compensation”. In accordance with the standard, the Group determines whether a share-based compensation should be classified and accounted for as a liability award or an equity award.

Options and restricted share units granted to employees and non-employees, including directors, vest upon satisfaction of a service condition, which is generally satisfied over one year and four years, and are measured at fair value as of the grant date. The Company elects to recognize forfeitures when they occur.

Additionally, the Group’s incentive plan provides an exercisability clause where employees or non-employees can only exercise vested options upon the occurrence of the event that the Group’s ordinary shares are publicly traded. The satisfaction of the performance condition becomes probable only upon the completion of the Group’s initial public offering (“IPO”). Therefore, with the Company’s completion of IPO in June 2020, the Group has recorded the cumulative share-based compensation expenses for these options.

According to ASC 718, a change in any of the terms or conditions of equity-based awards shall be accounted for as a modification of the award. Therefore, the Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified. For vested options, the Group would recognize incremental compensation cost on the date of modification and for nonvested options, the Group would recognize, prospectively and over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.22 Loss per share

Basic loss per share is computed by dividing net loss available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

The Company’s convertible redeemable preferred shares are participating securities as the preferred shares participate in undistributed earnings on an as-if-converted basis. Accordingly, the Group uses the two-class method of computing earnings per share, whereby undistributed net income is allocated on a pro rata basis to each participating share to the extent that each class may share net income for the period. Undistributed net loss is not allocated to preferred shares because they are not contractually obligated to participate in the loss of the Group.

Diluted loss per ordinary share reflects the potential dilution that could occur if securities were exercised or converted into ordinary shares. The Group had convertible redeemable preferred shares, share options, restricted share units and warrants, which could potentially dilute basic earnings per share in the future. To calculate the number of shares for diluted loss per share, the effect of the convertible redeemable preferred shares is computed using the as-if-converted method; the effect of the stock options, restricted share units and warrant are computed using the treasury stock method.

2.23 Government grants

Government grants are primarily referred to the amounts received from various levels of local governments from time to time which are granted for general corporate purposes and to support the Group’s ongoing operations in the region. The grants are determined at the discretion of the relevant government authorities and there are no restrictions on their use. The government grants are recorded as other operating income in the period the cash is received.

2.24 Taxation

Deferred income taxes are recognized for temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided in accordance with the laws of the relevant taxing authorities. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in which temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of changes in tax rates is recognized in the consolidated statements of operations and comprehensive loss in the period of the enactment of the change.

2.25 Segment reporting

The Group uses management approach to determine operating segment. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions in allocation of resource and assessing performance.

The Group’s CODM has been identified as the president who reviews the consolidated results of operations when making decisions about allocating resources and assessing performance of the Group. The Group operates and manages its business as a single operating segment.

The Group’s long-lived assets are all located in the PRC and all of the Group’s revenues are derived from the PRC. Therefore, no geographic information is presented.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.26 Comprehensive loss

Comprehensive loss is defined as the change in equity of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive loss is reported in the consolidated statements of operations and comprehensive loss. Accumulated other comprehensive income (loss), as presented in the accompanying consolidated balance sheets, represents accumulated foreign currency translation adjustments.

2.27 Recent accounting pronouncements

There are no recent accounting pronouncements in which the adoption is expected to have a material effect on the Group’s financial statements in the current or any future periods.

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2022

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

3. FAIR VALUE MEASUREMENTS

The Group’s financial instruments mainly include cash and cash equivalent, restricted cash, short-term investments, accounts receivable, prepayments and other current assets, amount due from and due to related parties, long-term time deposit, accounts payable, certain other current liabilities, short-term loan, and payable to riders and drivers. The carrying amounts of short-term financial instruments approximate their fair value due to their short-term nature. The carrying values of long-term time deposits approximate their fair values as their interest rates are comparable to the prevailing interest rates in the market.

Certain non-financial assets are measured at fair value on a nonrecurring basis, including property and equipment, operating lease right-of-use assets, goodwill and intangible assets and they are recorded at fair value only when impairment is recognized by applying unobservable inputs such as forecasted financial performance and discount rate to the discounted cash flow valuation methodology. During the years ended December 31, 2020, 2021 and 2022, the Group did not recognize any impairment of non-financial assets .

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SHORT-TERM INVESTMENTS

12 Months Ended

Dec. 31, 2022

SHORT-TERM INVESTMENTS

SHORT-TERM INVESTMENTS

4. SHORT-TERM INVESTMENTS


	As of December 31,
	2021	2022
	RMB	RMB
Wealth management products	568,909	671,188
Time deposits	625,000	2,031,336
Total	1,193,909	2,702,524

PREPAYMENTS AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2022

PREPAYMENTS AND OTHER CURRENT ASSETS

PREPAYMENTS AND OTHER CURRENT ASSETS

5. PREPAYMENTS AND OTHER CURRENT ASSETS


	As of December 31,
	2021	2022
	RMB	RMB
Loan provided to third party companies⁽¹⁾	237,933	285,700
VAT receivables	133,050	145,868
Funds receivable from third party mobile and online payment platforms	49,310	71,394
Interest receivable	24,779	61,325
Advance to suppliers	25,667	32,621
Deposits mainly for lease of premises	5,799	5,569
Other receivables	1,384	3,218
Prepaid interest expense	1,095	807
Prepayments and other current assets	479,017	606,502

Notes:

(1)	In 2021, the Group made available to third party companies a one-year revolving credit facility of up to RMB300,000 with annualized interest rate of 4.5%. The facility was guaranteed by certain shareholders of those third-party companies. In 2022, the Group agreed to extend the maturity

date mentioned in the original agreement to the date of April 26, 2024 and increase in revolving credit facility of up to RMB400,000. Each loan under this credit facility has a maturity of three months.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2022

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

6. PROPERTY AND EQUIPMENT, NET

Property and equipment and the accumulated depreciation are as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Office facilities	5,260	2,844
Software	18,720	20,610
Computer equipment	15,551	18,797
Vehicles	1,873	285
Leasehold improvement	55,548	59,302
Total cost	96,952	101,838
Less: Accumulated depreciation	(59,397)	(84,989)
Property and equipment, net	37,555	16,849

Depreciation expenses related to property and equipment were RMB18,826 and RMB27,055 for the years ended December 31, 2021 and 2022, respectively.

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2022

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

7. INTANGIBLE ASSETS, NET

Gross carrying amount, accumulated amortization and net book value of the intangible assets are as follows:


	As of December 31,
	2021	2022
	RMB	RMB
BCA	427,010	2,235,457
NCC	531,579	580,678
Trademark and Domain name	340,053	340,053
Technology	96,000	96,000
Less: Accumulated amortization	(1,062,325)	(1,586,868)
Intangible assets, net	332,317	1,665,320

Amortization expenses related to intangible assets were RMB173,741 and RMB469,903 for the years ended December 31,2021 and 2022, respectively.

Along with JD investment on February 28, 2022, JD and the Group entered into a BCA which granted the Group certain strategic resources. The BCA primarily includes cooperation areas such as user traffic and search results. The Group recognized BCA arising from JD investment of USD254,000 (RMB1,605,839) and amortized it on a straight-line basis over 5 years.

The estimated aggregate amortization expenses for each of the five succeeding fiscal years and thereafter are as follows:


		Future Amortization Expense
		RMB
For the years ending December 31,
2023		446,324
2024		396,119
2025		396,112
2026		363,825
2027 and thereafter		62,940
Total		1,665,320

OPERATING LEASES

12 Months Ended

Dec. 31, 2022

OPERATING LEASES

OPERATING LEASES

8. OPERATING LEASES

For the years ended December 31, 2020, 2021 and 2022, the Group incurred operating lease costs amounting to RMB47,915, RMB50,537 and RMB35,973 respectively, excluding RMB13,548, RMB9,256 and RMB9,031 for short-term leases not capitalized as ROU assets, respectively.

Supplemental cash flow information related to operating leases included in operating lease assets and liabilities was as follows:


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cash payments for amounts included in measurement of liabilities	48,890	49,864	36,890
New operating lease assets obtained in exchange for operating lease liabilities	24,688	18,744	5,836
ROU modification due to early surrender	—	(3,154)	(11,873)
Lease liability modification due to early surrender	—	2,778	12,705

As of December 31, 2021 and 2022, the Group’s operating leases had a weighted average remaining lease term of 2.5 and 1.7 years and a weighted average discount rate of 4.8% and 4.8%, respectively.

Future lease payments under operating leases, excluding short-term leases not capitalized, as of December 31, 2021 and 2022 were as follows:


	As of December 31,
	2021	2022
	RMB	RMB
Within one year	38,669	25,836
Within a period of more than one year but not more than two years	28,694	16,878
Within a period of more than two year but not more than three years	19,498	—
Total future lease payments	86,861	42,714
Less: imputed interest	4,859	1,680
Total lease liability balance	82,002	41,034
Less: Current operating lease liabilities	35,759	24,460
Long-term operating lease liabilities	46,243	16,574

The future lease payments for short-term leases not capitalized as ROU assets were RMB3,620 and RMB2,061 as of December 31, 2021 and December 31, 2022, which will be paid within one year.

SHORT-TERM LOAN

12 Months Ended

Dec. 31, 2022

SHORT-TERM LOAN

SHORT-TERM LOAN

9. SHORT-TERM LOAN


	As of December 31,
	2021	2022
	RMB	RMB
Short-term bank borrowing	100,000	100,000

The Group borrowed short-term loan of RMB100,000 as of December 31, 2021 and 2022. The interest rate is 2.75% and 1.80% respectively. Both borrowings have a maturity of one year and are collateralized by RMB100,000 of time deposit.

The interest expense incurred for the short-term bank borrowings for the years ended December 31, 2021 and 2022 amounted to RMB13,806 and RMB10,947, respectively.Cash proceeds received from short-term bank borrowing for the years ended December 31, 2021 and 2022 amounted to RMB100,000 and RMB1,118,000 and repayment of short-term bank borrowing for the years ended December 31, 2021 and 2022 amounted to RMB600,000 and RMB1,118,000, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2022

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

10. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	As of December 31,
	2021	2022
	RMB	RMB
Salaries and welfare payables	170,813	227,338
Payables to retailers on JDDJ⁽¹⁾	143,268	220,913
Accrued marketing expenses	106,307	179,608
Advance for online marketing services	48,518	88,694
Professional fee payable	36,745	62,048
Deposits from retailers and outsourced agencies	39,423	56,466
Advance for delivery services⁽²⁾	23,894	37,222
Tax payables	12,693	13,581
Others	38,745	46,073
Total	620,406	931,943

Notes:

(1)	Payables to retailers on JDDJ represent cash collected on behalf of retailers for goods sold through JDDJ.

(2)	Advance for delivery services represent the prepayments for on-demand delivery services. The amount is refundable if no service is provided.

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

11. SHARE-BASED COMPENSATION

In February 2015, the Group adopted the 2015 Incentive Compensation Plan (“2015 Plan”), which permits the granting of share options, restricted share units and other equity incentives to employees, directors and consultants of the Group. The 2015 plan administrator is the Group’s board of directors. The board may also authorize one or more of the Group’s officers to grant awards under the plan. The Group has authorized 61,605,996 ordinary shares for issuance under the 2015 Plan. The options expire in ten years from the date of grant.

In June 2020, the Group adopted the 2020 Incentive Compensation Plan (“2020 Plan”), which permits the granting of share options, restricted share units and other equity incentives to employees, directors and consultants of the Group. The 2020 plan administrator is the Group’s board of directors. The board may also authorize one or more of the Group’s officers to grant awards under the plan. The Group has initially authorized 45,765,386 ordinary shares, plus an annual increase on the first day of each year during the ten-year term of the 2020 Plan commencing with the year beginning January 1, 2021, by an amount equal to 1.0% of the total number of shares issued and outstanding on the last day of the immediately preceding year, for issuance under the 2020 Plan. The options expire in ten years from the date of grant. For the year ended December 31, 2022, 4,278,924 shares were exercised through reissuance of treasury stock.

Share option

Under the 2015 Plan and 2020 Plan, options granted to employees vest upon satisfaction of a service condition, which is generally satisfied over four years. Additionally, the 2015 Plan includes a condition where employees can only exercise vested options upon the occurrence of the Company’s ordinary shares becoming listed securities, which substantially creates a performance condition (“IPO Condition”) that had not been met prior to the Company’s IPO. Therefore, the stock compensation expenses related to those options were not recognized until June 5th, 2020. The Group recognized RMB131,344, RMB52,569 and RMB30,928 of stock-based compensation expenses for the years ended December 31, 2020, 2021 and 2022, respectively. The Group granted 4,936,000, nil and nil share options for the years ended December 31, 2020, 2021 and 2022, respectively.

Under the 2015 Plan, options granted to non-employees are also subject to a four-year service period and the IPO condition. Therefore, the Group did not recognize any stock-based compensation expenses related to such non-employee options until June 2020.The Group recognized RMB34,285, nil and nil of stock-based compensation expenses for the years ended December 31, 2020, 2021 and 2022, respectively. The Group did not grant any share options to non-employees for the years ended December 31, 2020, 2021 and 2022.

11. SHARE-BASED COMPENSATION - CONTINUED

Share option - continued

The Group adopted ASU 2018-07 on January 1, 2019, and the stock-based compensation expense for non-employee grants for which a measurement date had not been established was remeasured based on the estimated fair value of the Company’s ordinary share of US$2.26 on January 1, 2019.

In determining the fair value of the stock options, the binomial option pricing model was applied. The key assumptions used to determine the fair value of the options at the respective grant dates in 2020 were as follows:


	As of December 31,
	2020
Expected volatility	37%~41	%
Risk-free interest rate (per annum)	1.7%~2.3	%
Exercise multiples	2.2
Expected dividend yield	0.00	%
Fair value of underlying ordinary shares	US$4.08~5.79
Fair value of share option	US$3.32~5.03

The Group estimated expected volatility by reference to the historical price volatilities of ordinary shares of comparable companies over a period close to the contract term of the options. The Group estimated the risk-free interest rate based on the yield to maturity of U.S. government bonds at grant date with a maturity period close to the contract term of options, adjusted by country risk differential between U.S. and China. As the Group has very limited option exercise history, it estimated exercise multiples based on empirical research on typical employee stock option exercising behavior. The dividend yield was estimated as zero based on the plan to retain profit for corporate expansion and no dividend will be distributed in the near future. The Company used the closing price of ordinary shares on the grant date as the fair value of ordinary share on the grant date. The assumptions used in share-based compensation expenses recognition represent the Group’s best estimates, but these estimates involve inherent uncertainties and the application of judgment. If factors change or different assumptions are used, the share-based compensation expenses could be materially different for any period.

The following table summarized the Group’s share option activities under the Option Plans:


			Weighted
		Weighted	Average	Weighted
		Average	Remaining	Average	Aggregate
	Number	Exercise	Contract Life	Grant Date	Intrinsic
	of Options	Price	(years)	Fair Value	Value
		US$		US$	US$
Outstanding at January 1, 2022	23,658,649	0.50	5.45	1.69	52,644
Exercised	(12,030,257)	0.22		0.76
Forfeited	(1,224,032)	0.80		3.38
Outstanding at December 31, 2022	10,404,360	0.67	5.06	2.11	11,219
Vested and expect to vest at December 31, 2022	10,404,360	0.67	5.06	2.11	11,219
Exercisable at December 31, 2022	8,483,792	0.62	4.44	1.76	9,560

The weighted average grant date fair value of options granted for the year ended December 31, 2020, was USD4.19. The total intrinsic value of options exercised during the years ended December 31, 2020, 2021, and 2022 was RMB450,056, RMB674,174, and RMB203,841, respectively. Total fair value of options vested during the years ended December 31, 2020, 2021, and 2022 was RMB31,807, RMB57,695, and RMB43,889, respectively. As of December 31, 2022, there was RMB27,984 of total unrecognized compensation expense related to options, which is expected to be recognized over a weighted-average period of 0.98 years.

11. SHARE-BASED COMPENSATION - CONTINUED

Restricted share units

In 2020, the Group granted in total 17,995,626 restricted share unites to employees and two executives of the Company’s principal shareholders, subject to service vesting schedules of one year, four years or six years under the 2015 Plan and the 2020 Plan. The weighted average estimated fair value on the grant date of each restricted share unit was US$4.36 (RMB28.42).

In 2021, the Group granted in total 9,253,000 restricted share units to employees and non-employees, subject to a four-year service vesting schedule under the 2020 Plan. The weighted average estimated fair value on the grant date of each restricted share unit was US$6.04 (RMB38.48).

In 2022, the Group granted in total 13,178,072 restricted share units to employees, subject to a two-year or four-year service vesting schedule under the 2020 Plan. The weighted average estimated fair value on the grant date of each restricted share unit was US$2.02 (RMB13.94).

The following table summarized the Group’s restricted share unit activities under the 2015 and 2020 Plan:


	Number of	Weighted Average
	Restricted Share	Grant Date
	Units	Fair Value
		US$
Nonvested at January 1, 2022	20,437,584	4.98
Granted	13,178,072	2.02
Vested	(6,553,603)	4.67
Forfeited	(7,432,124)	4.19
Nonvested at December 31, 2022	19,629,929	3.39
Expected to vest at December 31, 2022	19,629,929	3.39

Restricted share units granted to employees and non-employees are measured based on the closing price of ordinary shares on the grant date and recognized as compensation cost on a straight-line basis over the requisite service period. Total share-based compensation expenses recognized for these restricted share units in 2020, 2021 and 2022 were RMB185,138, RMB146,996 and RMB183,798, respectively. The total fair value of restricted share units vested during the year ended December 31, 2020, 2021 and 2022, was RMB79,876, RMB115,893 and RMB214,134, respectively. As of December 31, 2022, there were RMB465,812 of unrecognized compensation expenses related to nonvested restricted share units which is expected to be recognized over a weighted-average period of 2.95 years.

11. SHARE-BASED COMPENSATION – CONTINUED

JD’s Share Incentive Plan (the “JD Employee Awards”)

On April 26, 2016, the Group consummated the acquisition of JDDJ business from JD. The acquisition involved the transfer of certain employees from JD to the Group. These employees were granted with nonvested restricted share units by JD when they were employed by JD. The JD Employee Awards which are generally vested annually over six years continued in effect after the acquisition for the employees transferred to the Group, provided that these employees continue their employment with the Group or any subsidiaries of JD.

The Group recognizes the entire cost of JD Employee Awards incurred by JD, the Group’s shareholder, as compensation cost with a corresponding amount as a capital contribution according to ASC 505-10-25-3. Prior to January 1, 2019, the Group re-measured the awards at a fair-value-based amount as of the end of each reporting period until performance was completed. On January 1, 2019, the Group adopted ASU 2018-07, under which the stock-based compensation for which a measurement date had not been established was re-measured based on the fair value of the JD’s ordinary share of US$20.93 on January 1, 2019. The share-based compensation amounts related to JD’s share were RMB9,311, RMB8,378 and RMB4,004 for the years ended December 31, 2020, 2021 and 2022, respectively.


	Number of
	Restricted Share	Weighted Average
	Units	Fair Value
		US$
Nonvested at January 1, 2022	29,429	20.93
Vested	(29,429)	20.93
Nonvested at December 31, 2022	—	—

ORDINARY SHARES

12 Months Ended

Dec. 31, 2022

ORDINARY SHARES

ORDINARY SHARES

12. ORDINARY SHARES

Upon the completion of IPO in June 2020, the Group issued 89,491,548 ordinary shares at $4.00 per share, and received proceeds of RMB2,357,823 net of the underwriting discounts and commission and expenses related to IPO.

Upon the completion of a follow-on public offering in December 2020, the Group issued 36,000,000 ordinary shares at $12.50 per share, and received proceeds of RMB2,816,190 net of the underwriting discounts and commission and expenses related to the offering.

In June 2021, the Group’s Board of Directors authorized a share repurchase program (“2021 share repurchase program”) under which the Group may repurchase up to US$150,000 worth of its ADSs during the 12-month period. Under the 2021 share repurchase program, the Group repurchased 28,099,564 ordinary shares for US$150,000 (RMB968,409) on the open market, at a weighted average price of US$5.34 (RMB34.03) per share including commission cost, for the year ended December 31, 2021. In March 2022, the Board of Directors of the Company has authorized a share repurchase program (“2022 share repurchase program”) whereby the Company is authorized to repurchase up to US$70,000 worth of its ADSs during the next 12-month period. Under the 2022 share repurchase program, the Group repurchased 34,137,780 ordinary shares for US$60,145 (RMB401,566) on the open market, at a weighted average price of US$1.76 (RMB12.13) per share including commission cost, for the year ended December 31, 2022. These repurchased shares are subject to retirement. The repurchases of ordinary shares are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as reductions of ordinary shares and additional paid-in capital.

In March 2021, the Company and JD entered into a share subscription agreement. Upon the terms and subject to the conditions of this agreement, at closing, JD agreed to subscribe for and purchase, and the Company agreed to issue and sell to JD 109,215,017 ordinary shares for an aggregate purchase price of US$800 million. In February 2022, the Company and JD entered into an amendment to share subscription agreement. Upon the closing of this deal, the Company issued 109,215,017 ordinary shares to JD in exchange for US$546 million in cash and BCA with a valuation of US$254 million from JD. JD holds, taking into account its existing shareholding, approximately 52% of the Company’s issued and outstanding shares.

LOSS PER SHARE

12 Months Ended

Dec. 31, 2022

LOSS PER SHARE

LOSS PER SHARE

13. LOSS PER SHARE

Loss per share was computed by dividing net loss available to ordinary shareholders by the weighted average number of ordinary shares outstanding for the years ended December 31, 2020, 2021 and 2022:


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net loss available to ordinary shareholders of the Company—basic and diluted	(2,080,825)	(2,471,127)	(2,008,005)
Denominator:
Weighted average number of ordinary shares outstanding	667,844,843	950,697,557	1,015,265,686
Basic and diluted loss per share	(3.12)	(2.60)	(1.98)

As a result of the Group’s net loss for the three years ended December 31, 2020, 2021 and 2022, the following weighted average numbers of the Company’s share options, and restricted share units outstanding in the respective periods were excluded from the calculation of diluted loss per share as their inclusion would have been anti-dilutive.


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Share options	42,253,493	18,640,216	15,028,082
Restricted share units	16,188,798	17,133,658	21,358,045

TAXATION

12 Months Ended

Dec. 31, 2022

TAXATION

TAXATION

14. TAXATION

Income Taxes

Cayman Islands

Under the current laws of the Cayman Islands, the Company incorporated in the Cayman Islands are not subject to tax on income or capital gain.

Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

Hong Kong

Operations in Hong Kong have incurred net accumulated operating losses for income tax purpose and therefore no income tax provisions are recorded for the periods presented. Under the current Hong Kong Inland Revenue Ordinance, the Group’s subsidiary domiciled in Hong Kong is subject to a two-tiered profits tax rate regime. The profits tax rate for the first HK dollar 2,000 of profits of corporations is 8.25%, while profits above that amount is subject to the tax rate of 16.5%.

China

Under the PRC Corporate Income Tax Law (“new CIT Law”), Foreign Investment Enterprises (“FIEs”) and domestic companies are subject to corporate income tax at a uniform rate of 25%. Dada Glory and Shanghai JDDJ qualified as high and new technology enterprises (“HNTE”) (effective till 2023) and are eligible to a reduced income tax rate of 15% for the years ended December 31, 2021, 2022 and 2023 if certain conditions are met.

14. TAXATION - CONTINUED

Income Taxes - continued

Withholding tax on undistributed dividends

The new CIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The implementing rules of the CIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, etc., of a non-PRC company is located”. Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes.

Loss by tax jurisdictions:


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Loss from PRC operations	1,215,179	2,225,317	1,402,607
Loss from non-PRC operations	495,140	257,368	610,239
Total losses before tax	1,710,319	2,482,685	2,012,846

The current and deferred portion of income tax expenses included in the consolidated statements of operations and comprehensive loss are as follows:


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Current tax expenses	—	—	171
Deferred tax benefits	(5,143)	(11,558)	(5,012)
Income tax benefits	(5,143)	(11,558)	(4,841)

Reconciliation of the difference between PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2020, 2021 and 2022 are as follows:


	For the Year Ended December 31,
	2020		2021		2022
	RMB		RMB		RMB
Statutory tax rate	25.0	%	25.0	%	25.0	%
Effect of different tax rate of subsidiary operation in other jurisdiction	(7.3)	%	(2.6)	%	(7.6)	%
Changes in valuation allowance	(20.7)	%	(25.6)	%	(19.5)	%
Other expenses not deductible for tax purposes	(0.2)	%	(0.1)	%	(0.2)	%
Expired tax loss	(0.2)	%	(0.6)	%	(1.4)	%
True up	(0.2)	%	(0.1)	%	(2.9)	%
Super deduction of research and development expense	3.9	%	4.2	%	6.8	%
Effect of tax rate change of deferred tax liabilities	0	%	0.3	%	0	%
Effective tax rate	0.3	%	0.5	%	0.2	%

14. TAXATION - continued

Deferred tax assets and deferred tax liabilities


	As of December 31,
	2021	2022
	RMB	RMB
Deferred tax assets
- Net operating loss carry forwards	2,783,606	3,045,224
- Bad debt provision	—	2,663
- Inventories valuation allowance	37	96
- Accrued expenses	41,039	1,664
- Advertising expenses	6,235	173,525
Less: Valuation allowance	(2,830,917)	(3,223,172)
Net deferred tax assets	—	—
Deferred tax liabilities
- Identifiable intangible assets from business combination	27,000	21,988
Total deferred tax liabilities	27,000	21,988

As of December 31, 2020, 2021 and 2022, the Group had net operating loss carry forwards of approximately RMB8,625,584, RMB11,134,427 and RMB12,180,894, respectively, which arose from the subsidiaries, VIE and VIE’s subsidiaries established in the PRC. The loss carry forwards will expire during the period from 2023 to 2032.

The Group believes that it is more likely than not that the net accumulated operating losses and other deferred tax assets will not be utilized in the future based on an evaluation of a variety of factors including the Group’s operating history, accumulated deficit, existence of taxable temporary differences and reversal periods. Therefore, the Group provided full valuation allowances for the deferred tax assets as of December 31, 2021 and 2022, respectively.

Movement of valuation allowance


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at beginning of the year	1,841,225	2,195,870	2,830,917
Addition	354,645	635,047	392,255
Balance at end of the year	2,195,870	2,830,917	3,223,172

According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of income tax liability exceeding RMB100 is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. The Group’s PRC subsidiaries are therefore subject to examination by the PRC tax authorities from 2017 through 2022 on non-transfer pricing matters and transfer pricing matters.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

CONCENTRATION OF CREDIT RISK

12 Months Ended

Dec. 31, 2022

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK

15. CONCENTRATION OF CREDIT RISK

Financial instruments that potentially expose the Group to concentration of credit risk consist primarily of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, amount due from related parties and prepayments and long-term time deposits. The Group places its cash and cash equivalents , restricted cash,short-term investments and long-term time deposits with financial institutions with high-credit ratings and quality. Accounts receivable mainly consist of amounts receivable from merchants and brand owners. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs in its customers and its ongoing monitoring process of outstanding balances. With respect to prepayments, the Group performs on-going credit evaluations of the financial condition of the suppliers. The Group has not noted any significant credit risk.

Concentration of customers

The following customers accounted for 10% or more of revenue for the years ended December 31, 2020, 2021 and 2022:


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Customer A	794,685	1,387,685	2,027,548
Customer B	2,214,262	951,328	1,900,540

The following customers accounted for 10% or more of accounts receivable as of December 31, 2021 and 2022, respectively.


	As of December 31,
	2021	2022
	RMB	RMB
Customer C	*	41,574
Customer D	*	33,150
Customer E	80,101	*
Customer F	45,689	*

* Less than 10%

Foreign currency risk

RMB is not a freely convertible currency. The State Administration of Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents, restricted cash and short-term investments of the Group included aggregated amounts of RMB1,106,546 and RMB3,035,742 denominated in RMB as of December 31, 2021 and 2022, respectively.

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2022

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

16. RELATED PARTY TRANSACTIONS

The table below sets forth the major related parties and their relationships with the Group as of December 31, 2022:

Name of related parties		Relationship with the Group
JD, its subsidiaries and affiliated entity (“JD Group”)⁽¹⁾		Controlling Shareholder of the Company
Walmart, its subsidiaries and affiliates (“Walmart Group”)		Shareholder of the Company

(1)	JD Group primarily consist of JD and its subsidiaries. Starting from February 2022, Yonghui Group, an affiliated entity of JD, became a related party of the Group after JD became the controlling shareholder of the Company.

(a) The Group entered into the following transactions with the major related parties:


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenues
Services to JD Group⁽¹⁾	2,214,262	951,328	1,900,540
Services to Walmart Group⁽²⁾	794,685	1,387,685	2,027,548
Operating expenses
Operational support services from JD Group⁽¹⁾	79,038	265,635	664,612
Purchases from JD Group	46,407	44,889	39,439

(1)

The services revenues from JD Group primarily consist of revenues from delivery services, platform technical services and promotion services. Before April 2021, the Group fulfilled the delivery needs of JD Group as the principal. The Group was primarily responsible for the delivery of merchandise and guaranteed identifying and directing riders to complete the deliveries requested by JD Group. Starting from April 2021, the Group entered into a new service agreement with JD Group. Under the new contractual terms, the Group only provides platform technical services to JD Group. It acts as an agent in fulfilling the delivery needs of JD Group and is not primarily responsible for the delivery of merchandise. The service agreement has an initial term of one year and remains valid till other replacement agreement is signed by both parties. The Company also provides consumer related promotion services to JD Group.

JD Group also provides certain operational supporting services to the Group, such as referral traffic under Omni-channel collaboration with JD Group and cloud server service.The service fee is confirmed with the Group on a monthly basis. The service agreements have terms ranging from one to three years and have been renewed upon expiration.

In addition, the Group entered into the purchase agreement with JD Group in August 2016 to purchase goods from JD Group for sale on Dada Now. The purchase agreement has an initial term of one year, remains valid till other replacement agreement is signed by both parties.

Yonghui Group, as an equity method investee of JD, became a related party of the Group in February 2022. The services revenues from Yonghui Group primarily consist of on-demand retail platform services revenues and delivery services revenues under the service agreement with Yonghui Group. The on-demand retail platform services revenues primarily consist of commission fees based on a pre-determined percentage charged to Yonghui Group for participating in the Group’s online marketplace. The Group also fulfills the delivery needs of Yonghui Group on JDDJ where the Group acts as a principal. Revenues are recognized on a gross basis at a pre-determined amount for each completed delivery.

16. RELATED PARTY TRANSACTIONS – CONTINUED

(2)

The services revenues from Walmart Group primarily consist of on-demand retail platform services revenues and delivery services revenues under the business cooperation agreement and service agreement with Walmart Group. The on-demand retail platform services revenues primarily consist of commission fees based on a pre-determined percentage charged to Walmart Group for participating in the Group’s online marketplace. The Group also fulfills the delivery needs of Walmart Group on JDDJ where the Group acts as a principal. Revenues are recognized on a gross basis at a pre-determined amount for each completed delivery. The Group entered into the business cooperation agreement with Walmart Group in June 2016, which was amended and restated in August 2018. The amended and restated business cooperation agreement has a term of six years. The service agreement has an initial term of one year, and remains valid till the termination of the business cooperation agreement.

(b) The Group had the following balances with the major related parties:


	As of December 31,
	2021	2022
	RMB	RMB
Current assets:
Amount due from JD Group	424,395	507,107
Amount due from Walmart Group	416,272	553,880
Total	840,667	1,060,987
Current liabilities:
Amount due to JD Group⁽¹⁾	43,042	92,119
Amount due to Walmart Group⁽²⁾	28,718	54,884
Total	71,760	147,003

(1)	Amount due to JD Group includes cost for referral traffic under omni-channel collaboration with JD Group, cloud server service fee and, cash collected from consumers on behalf of JD Group when the Group performs on-demand retail platform services.

(2)	Amount due to Walmart Group includes cash collected from consumers on behalf of Walmart when the Group performs on-demand retail platform services.

EMPLOYEE BENEFIT

12 Months Ended

Dec. 31, 2022

EMPLOYEE BENEFIT

EMPLOYEE BENEFIT

17. EMPLOYEE BENEFIT

As stipulated by the regulations of the PRC, full-time employees of the Group are entitled to various government statutory employee benefit plans, including medical insurance, maternity insurance, workplace injury insurance, unemployment insurance and pension benefits through a PRC government-mandated multi-employer defined contribution plan. The Group is required to make contributions to the plan based on certain percentages of employees’ salaries. The total expenses the Group incurred for the plan were RMB77,708, RMB177,521 and RMB209,769 for the years ended December 31, 2020, 2021 and 2022, respectively, which are recorded in expenses based on the function of employees.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2022

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

18. COMMITMENTS AND CONTINGENCIES

Contingencies

The Group is subject to a number of legal or administrative proceedings that generally arise in the ordinary course of its business. The Group does not believe that any currently pending legal or administrative proceeding to which the Group is a party will have a material adverse effect on the financial statements.

RESTRICTED NET ASSETS

12 Months Ended

Dec. 31, 2022

RESTRICTED NET ASSETS

RESTRICTED NET ASSETS

19. RESTRICTED NET ASSETS

Pursuant to the laws applicable to the PRC’s Foreign Investment Enterprises and local enterprises, the Group’s entities in the PRC must make appropriation from after-tax profit to non-distributable reserve funds as determined by the Board of Directors of the subsidiaries.

PRC laws and regulations permit payments of dividends by the Company’s subsidiaries and VIE incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, the Company’s subsidiaries and VIE incorporated in the PRC are required to annually appropriate 10% of their net income to the statutory reserve prior to payment of any dividends, unless such reserve has reached 50% of their respective registered capital. In addition, registered share capital and capital reserve accounts are also restricted from withdrawal in the PRC.

As a result of these PRC laws and regulations and the requirement that distributions by PRC entities can only be paid out of distributable profits computed in accordance with the PRC accounting standards and regulations, the PRC entities are restricted from transferring a portion of their net assets to the Group. Amounts restricted include paid-in capital, APIC and the statutory reserves of the Company’s PRC subsidiaries, VIE and VIE’s subsidiaries. As of December 31, 2021 and 2022, the total of restricted net assets were RMB9,409,485 and RMB9,413,346, respectively.

SUBSEQUENT EVENT

12 Months Ended

Dec. 31, 2022

SUBSEQUENT EVENT

SUBSEQUENT EVENT

20. SUBSEQUENT EVENT

On April 25, 2023, the Company entered into a set of agreements with JD, pursuant to which the Company will issue 18,927,876 ordinary shares to JD in exchange for the usage of certain strategic resources for 3 years. JD holds, taking into account its existing shareholding, approximately 53.9% of the Company’s issued and outstanding shares upon the closing of this deal.

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY

12 Months Ended

Dec. 31, 2022

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY

CONDENSED BALANCE SHEETS

(Amounts in thousands, except for share and per share data)


	As of December 31,
	2021	2022
	RMB	RMB	US$
			(Note 2)
ASSETS
Current assets:
Cash and cash equivalents	112,374	76,610	11,107
Short-term investments	528,909	1,253,628	181,759
Prepayments and other current assets	3,163	15,921	2,308
Total current assets	644,446	1,346,159	195,174
Investments in subsidiaries, VIE and VIE’s subsidiaries	2,959,723	4,102,926	594,868
Intangible assets, net	186,037	1,554,155	225,331
Total non-current assets	3,145,760	5,657,081	820,199
TOTAL ASSETS	3,790,206	7,003,240	1,015,373
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Accrued expenses and other current liabilities	1,577	3,520	510
TOTAL LIABILITIES	1,577	3,520	510
SHAREHOLDERS’ EQUITY
Ordinary shares (US$0.0001 par value, 2,000,000,000 and 2,000,000,000 shares authorized, 955,876,116 and 1,079,881,662 shares issued, 927,776,552 and 1,021,923,242 shares outstanding as of December 31, 2021 and 2022, respectively)	633	688	100
Additional paid-in capital	15,714,015	20,599,549	2,986,653
Accumulated deficit	(11,816,229)	(13,824,234)	(2,004,326)
Accumulated other comprehensive income (loss)	(109,790)	223,717	32,436
TOTAL SHAREHOLDERS’ EQUITY	3,788,629	6,999,720	1,014,863
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	3,790,206	7,003,240	1,015,373

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Amounts in thousands, except for share and per share data)


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB	US$
				(Note 2)
Expenses and income (loss)
Operating expenses	(513,407)	(358,458)	(668,231)	(96,883)
Interest income	18,955	29,633	24,366	3,533
Foreign exchange income (loss)	—	(311)	6,702	972
Other operating income	101	13,334	18,163	2,633
Equity in losses of subsidiaries, VIE and VIE’s subsidiaries	(1,210,825)	(2,155,325)	(1,389,005)	(201,387)
Net loss and net loss attributable to the Company	(1,705,176)	(2,471,127)	(2,008,005)	(291,132)
Accretion of convertible redeemable preferred shares	(375,649)	—	—	—
Net loss available to ordinary shareholders	(2,080,825)	(2,471,127)	(2,008,005)	(291,132)
Net Loss	(1,705,176)	(2,471,127)	(2,008,005)	(291,132)
Other comprehensive loss
Foreign currency translation adjustments	(209,963)	(39,487)	333,507	48,354
Total comprehensive loss	(1,915,139)	(2,510,614)	(1,674,498)	(242,778)

CONDENSED STATEMENTS OF CASHFLOW

(Amounts in thousands, except for share and per share data)


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB	US$
				(Note 2)
Net cash provided by operating activities	1,571	42,829	16,869	2,446
Net cash used in investing activities	(20,652)	(4,001,123)	(3,126,808)	(453,345)
Net cash provided by/(used in) financing activities	5,181,447	(936,655)	3,061,020	443,806
Effect of foreign exchange rate changes on cash and cash equivalents	(173,133)	(22,483)	13,155	1,907
Net increase/(decrease) in cash and cash equivalents	4,989,233	(4,917,432)	(35,764)	(5,186)
Cash and cash equivalents, beginning of the year	40,573	5,029,806	112,374	16,293
Cash and cash equivalents, end of the year	5,029,806	112,374	76,610	11,107

NOTES TO SCHEDULE I

(1)

Schedule 1 has been provided pursuant to the requirements of Rule 12-04(a) and 5-04(c) of Regulation S-X, which require condensed financial information as to the financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited financial statements have been presented when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company does not include condensed financial information as to the changes in equity as such financial information is the same as the consolidated statements of changes in shareholders’ equity.

(2)

The condensed financial information has been prepared using the same accounting policies as set out in the financial statements except that the equity method has been used to account for investments in its subsidiaries and VIE. For the parent company, the Company records its investments in subsidiaries and VIE under the equity method of accounting as prescribed in ASC 323, Investments—Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as “Investment in subsidiaries, VIE and VIE’s subsidiaries” and the subsidiaries and VIE’s profit or loss as “Equity in losses of subsidiaries, VIE and VIE’s subsidiaries” on the Condensed Statements of Operations and Comprehensive Income. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the parent company has continued to reflect its share, based on its proportionate interest, of the losses of subsidiaries and VIE in investment in and amount due from subsidiaries, VIE and VIE’s subsidiaries even though the parent company is not obligated to provide continuing support or fund losses.

(3)	As of December 31, 2020, 2021 and 2022, there were no material contingencies, significant provisions of long-term obligations, guarantees of the Company.

PRINCIPAL ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2022

PRINCIPAL ACCOUNTING POLICIES

Basis of presentation

2.1 Basis of presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the years presented.

Basis of consolidation

2.2 Basis of consolidation

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.2 Basis of consolidation - continued

VIE Arrangements

Exclusive Business Cooperation Agreement

Exclusive Option Agreements

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.2 Basis of consolidation - continued

VIE Arrangements - continued

Share Pledge Agreements

Powers of Attorney

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.2 Basis of consolidation - continued

VIE Arrangements - continued

Risks in relation to the VIE structure

The following amounts and balances of the consolidated VIE were included in the Group’s consolidated financial statements after the elimination of intercompany balances and transactions:


	As of December 31,
	2021	2022
	RMB	RMB
Cash and cash equivalents	3,961	13,968
Accounts receivable, net	760	373
Amount due from related parties	476	2,688
Prepayments and other current assets	3,287	4,122
Property and equipment, net	245	84
Intangible assets, net	10,938	9,302
Operating lease right-of-use assets	791	—
Other non-current assets	93	92
Total assets	20,551	30,629

Payable to riders and drivers	404	304
Amount due to related parties	32	966
Accrued expenses and other current liabilities	12,542	15,559
Operating lease liabilities	192	—
Non-current operating lease liabilities	412	—
Total liabilities	13,582	16,829


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net Revenues	3,293	13,104	15,769
Net loss	(49,741)	(58,641)	(36,743)
Net cash provided by operating activities	535	4,308	10,007
Net cash used in investing activities	(59)	(859)	—

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.2 Basis of consolidation - continued

VIE Arrangements - continued

Use of estimates

2.3 Use of estimates

Functional currency and foreign currency translation

2.4 Functional currency and foreign currency translation

Convenience translation

2.5 Convenience translation

Cash and cash equivalents

2.6 Cash and cash equivalents

Cash and cash equivalents primarily consist of cash on hand and cash in bank which is highly liquid and unrestricted as to withdrawal and use.

Restricted cash

2.7 Restricted cash

The Group’s restricted cash mainly represents cash received from consumers and reserved in bank supervised accounts for payments to retailers on the on-demand retail platform.

Short-term investments

2.8 Short-term investments

Accounts receivable, net

2.9 Accounts receivable, net

Inventories

2.10 Inventories

Property and equipment, net

2.11 Property and equipment, net


Category		Estimated useful lives
Computer equipment		3-4 years
Office facilities		3-5 years
Vehicles		5 years
Software		3-5 years
Leasehold improvement		Over the shorter of the expected useful life or the lease term

Intangible assets, net

2.12 Intangible assets, net


Category		Amortization Years
BCA		5-7
NCC		7
Technology		3.7
Trademark and Domain Name		9-9.7

Goodwill

2.13 Goodwill

2. PRINCIPAL ACCOUNTING POLICIES – continued

2.13 Goodwill – continued

Fair value measurement

2.14 Fair value measurement

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable, market-based inputs, other than quoted prices, in active markets for identical assets or liabilities.

Level 3: Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Revenue recognition

2.15 Revenue recognition

Services

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.15 Revenue recognition – continued

Other services provided by the Group comprise packaging services provided to retailers on JDDJ. Revenue is recognized when service is rendered at the point in time.

Goods Sales

Incentive programs

Customer incentives

Rider incentives

Consumer incentives

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.15 Revenue recognition - continued

Disaggregation of revenues

For the years ended December 31, 2020, 2021 and 2022, all of the Group’s revenues were generated in the PRC. The disaggregated revenues by revenue streams were as follows:


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Dada Now: ⁽¹⁾
Services	3,377,653	2,753,458	3,082,928
Sales of goods	56,925	67,254	74,642
Subtotal	3,434,578	2,820,712	3,157,570
JDDJ: ⁽²⁾
Services	2,305,411	4,045,550	6,205,180
Sales of goods	—	—	4,845
Subtotal	2,305,411	4,045,550	6,210,025
Total	5,739,989	6,866,262	9,367,595

Notes:

(1)	Includes net revenues from on-demand delivery services and freight services. Revenue from on-demand delivery services for which the Group acts as a principal was RMB763,699, RMB1,681,121 and RMB2,343,206 for the years ended December 31, 2020, 2021 and 2022, respectively.

(2)

Contract balances

The remaining unsatisfied performance obligation as of December 31, 2020, 2021 and 2022 was immaterial.

2. PRINCIPAL ACCOUNTING POLICIES - continued

2.15 Revenue recognition - continued


		Advances from
		Customers
		RMB
Ending Balance as of January 1, 2020		15,357
Increase, net		10,894
Ending Balance as of December 31, 2020		26,251
Increase, net		23,264
Ending Balance as of December 31, 2021		49,515
Increase, net		44,407
Ending Balance as of December 31, 2022		93,922

The opening balances of RMB15,357, RMB26,251 and RMB49,515 were recognized as revenue in the years ended December 31, 2020, 2021 and 2022, respectively.

Practical expedients and exemptions

The Group elects not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

Operations and support

2.16 Operations and support

Selling and marketing

2.17 Selling and marketing

Research and development

2.18 Research and development

Other operating expenses

2.19 Other operating expenses

Other operating expenses primarily consist of purchase price of merchandise sold on Dada Now.

Leases

2.20 Leases

As a lessee

Sublease

Share-based compensation

2.21 Share-based compensation

Loss per share

2.22 Loss per share

Basic loss per share is computed by dividing net loss available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Government grants

2.23 Government grants

Taxation

2.24 Taxation

Segment reporting

2.25 Segment reporting

The Group’s long-lived assets are all located in the PRC and all of the Group’s revenues are derived from the PRC. Therefore, no geographic information is presented.

Comprehensive loss

2.26 Comprehensive loss

Recent accounting pronouncements

2.27 Recent accounting pronouncements

There are no recent accounting pronouncements in which the adoption is expected to have a material effect on the Group’s financial statements in the current or any future periods.

ORGANIZATION AND NATURE OF OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2022

ORGANIZATION AND NATURE OF OPERATIONS

Schedule of major subsidiaries and consolidated VIEs

As of December 31, 2022, the Company’s major subsidiaries, VIE and VIE’s subsidiaries (“consolidated VIEs”) are as follows:


			Percentage
			of direct
			or indirect
	Place of	Date of incorporation /	economic
Name of Company	incorporation	acquisition	ownership		Principal activities
Subsidiaries
Dada Group (HK) Limited (“Dada HK”)	Hong Kong	July 24, 2014	100	%	Investment holding
Dada Glory Network Technology (Shanghai) Co., Ltd. (“Dada Glory”)	PRC	November 7, 2014	100	%	Providing services in connection with on-demand delivery platform (“Dada Now”)
Shanghai JD Daojia Yuanxin Information Technology Co., Ltd. (“Shanghai JDDJ”)	PRC	April 26, 2016	100	%	Providing services in connection with on-demand retail platform (“JDDJ”)
VIE
Shanghai Qusheng Internet Technology Co. Ltd. (“Shanghai Qusheng”)	PRC	July 2, 2014	100	%	Holding value-added telecommunications services license of Dada Now and maintaining Dada Now website
VIE’s Subsidiary
Shanghai JD Daojia Youheng E-Commerce Information Technology Co., Ltd. (“JDDJ Youheng”)	PRC	December 3, 2015	100	%	Holding value-added telecommunications services license of JDDJ and maintaining JDDJ website

PRINCIPAL ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

PRINCIPAL ACCOUNTING POLICIES

Schedule of amounts and balances of the consolidated VIE that were included in the Group's consolidated financial statements after the elimination of intercompany balances and transactions


	As of December 31,
	2021	2022
	RMB	RMB
Cash and cash equivalents	3,961	13,968
Accounts receivable, net	760	373
Amount due from related parties	476	2,688
Prepayments and other current assets	3,287	4,122
Property and equipment, net	245	84
Intangible assets, net	10,938	9,302
Operating lease right-of-use assets	791	—
Other non-current assets	93	92
Total assets	20,551	30,629

Payable to riders and drivers	404	304
Amount due to related parties	32	966
Accrued expenses and other current liabilities	12,542	15,559
Operating lease liabilities	192	—
Non-current operating lease liabilities	412	—
Total liabilities	13,582	16,829


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Net Revenues	3,293	13,104	15,769
Net loss	(49,741)	(58,641)	(36,743)
Net cash provided by operating activities	535	4,308	10,007
Net cash used in investing activities	(59)	(859)	—

Schedule of estimated useful lives of property and equipment, net


Category		Estimated useful lives
Computer equipment		3-4 years
Office facilities		3-5 years
Vehicles		5 years
Software		3-5 years
Leasehold improvement		Over the shorter of the expected useful life or the lease term

Schedule of useful lives of identifiable intangible assets


Category		Amortization Years
BCA		5-7
NCC		7
Technology		3.7
Trademark and Domain Name		9-9.7

Schedule of disaggregated revenues by revenue streams


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Dada Now: ⁽¹⁾
Services	3,377,653	2,753,458	3,082,928
Sales of goods	56,925	67,254	74,642
Subtotal	3,434,578	2,820,712	3,157,570
JDDJ: ⁽²⁾
Services	2,305,411	4,045,550	6,205,180
Sales of goods	—	—	4,845
Subtotal	2,305,411	4,045,550	6,210,025
Total	5,739,989	6,866,262	9,367,595

Notes:

(1)	Includes net revenues from on-demand delivery services and freight services. Revenue from on-demand delivery services for which the Group acts as a principal was RMB763,699, RMB1,681,121 and RMB2,343,206 for the years ended December 31, 2020, 2021 and 2022, respectively.

(2)

Schedule of opening and closing balances of the Group's advances from customers


		Advances from
		Customers
		RMB
Ending Balance as of January 1, 2020		15,357
Increase, net		10,894
Ending Balance as of December 31, 2020		26,251
Increase, net		23,264
Ending Balance as of December 31, 2021		49,515
Increase, net		44,407
Ending Balance as of December 31, 2022		93,922

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

SHORT-TERM INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2022

SHORT-TERM INVESTMENTS

Summary of short-term investments


	As of December 31,
	2021	2022
	RMB	RMB
Wealth management products	568,909	671,188
Time deposits	625,000	2,031,336
Total	1,193,909	2,702,524

PREPAYMENTS AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2022

PREPAYMENTS AND OTHER CURRENT ASSETS

Schedule of prepayments and other current assets


	As of December 31,
	2021	2022
	RMB	RMB
Loan provided to third party companies⁽¹⁾	237,933	285,700
VAT receivables	133,050	145,868
Funds receivable from third party mobile and online payment platforms	49,310	71,394
Interest receivable	24,779	61,325
Advance to suppliers	25,667	32,621
Deposits mainly for lease of premises	5,799	5,569
Other receivables	1,384	3,218
Prepaid interest expense	1,095	807
Prepayments and other current assets	479,017	606,502

Notes:

(1)	In 2021, the Group made available to third party companies a one-year revolving credit facility of up to RMB300,000 with annualized interest rate of 4.5%. The facility was guaranteed by certain shareholders of those third-party companies. In 2022, the Group agreed to extend the maturity

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2022

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, net


	As of December 31,
	2021	2022
	RMB	RMB
Office facilities	5,260	2,844
Software	18,720	20,610
Computer equipment	15,551	18,797
Vehicles	1,873	285
Leasehold improvement	55,548	59,302
Total cost	96,952	101,838
Less: Accumulated depreciation	(59,397)	(84,989)
Property and equipment, net	37,555	16,849

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2022

INTANGIBLE ASSETS, NET

Schedule of intangible assets, net


	As of December 31,
	2021	2022
	RMB	RMB
BCA	427,010	2,235,457
NCC	531,579	580,678
Trademark and Domain name	340,053	340,053
Technology	96,000	96,000
Less: Accumulated amortization	(1,062,325)	(1,586,868)
Intangible assets, net	332,317	1,665,320

Schedule of estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years


		Future Amortization Expense
		RMB
For the years ending December 31,
2023		446,324
2024		396,119
2025		396,112
2026		363,825
2027 and thereafter		62,940
Total		1,665,320

OPERATING LEASES (Tables)

12 Months Ended

Dec. 31, 2022

OPERATING LEASES

Schedule of Supplemental cash flow information related to operating leases


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Cash payments for amounts included in measurement of liabilities	48,890	49,864	36,890
New operating lease assets obtained in exchange for operating lease liabilities	24,688	18,744	5,836
ROU modification due to early surrender	—	(3,154)	(11,873)
Lease liability modification due to early surrender	—	2,778	12,705

Schedule of future lease payments under operating leases


	As of December 31,
	2021	2022
	RMB	RMB
Within one year	38,669	25,836
Within a period of more than one year but not more than two years	28,694	16,878
Within a period of more than two year but not more than three years	19,498	—
Total future lease payments	86,861	42,714
Less: imputed interest	4,859	1,680
Total lease liability balance	82,002	41,034
Less: Current operating lease liabilities	35,759	24,460
Long-term operating lease liabilities	46,243	16,574

SHORT-TERM LOAN (Tables)

12 Months Ended

Dec. 31, 2022

SHORT-TERM LOAN

Schedule of short-term loan


	As of December 31,
	2021	2022
	RMB	RMB
Short-term bank borrowing	100,000	100,000

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2022

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Schedule of accrued expenses and other current liabilities


	As of December 31,
	2021	2022
	RMB	RMB
Salaries and welfare payables	170,813	227,338
Payables to retailers on JDDJ⁽¹⁾	143,268	220,913
Accrued marketing expenses	106,307	179,608
Advance for online marketing services	48,518	88,694
Professional fee payable	36,745	62,048
Deposits from retailers and outsourced agencies	39,423	56,466
Advance for delivery services⁽²⁾	23,894	37,222
Tax payables	12,693	13,581
Others	38,745	46,073
Total	620,406	931,943

Notes:

(1)	Payables to retailers on JDDJ represent cash collected on behalf of retailers for goods sold through JDDJ.

(2)	Advance for delivery services represent the prepayments for on-demand delivery services. The amount is refundable if no service is provided.

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2022

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of assumptions used to determine the fair value of the options


	As of December 31,
	2020
Expected volatility	37%~41	%
Risk-free interest rate (per annum)	1.7%~2.3	%
Exercise multiples	2.2
Expected dividend yield	0.00	%
Fair value of underlying ordinary shares	US$4.08~5.79
Fair value of share option	US$3.32~5.03

Summary of share option activities under the Option Plans


			Weighted
		Weighted	Average	Weighted
		Average	Remaining	Average	Aggregate
	Number	Exercise	Contract Life	Grant Date	Intrinsic
	of Options	Price	(years)	Fair Value	Value
		US$		US$	US$
Outstanding at January 1, 2022	23,658,649	0.50	5.45	1.69	52,644
Exercised	(12,030,257)	0.22		0.76
Forfeited	(1,224,032)	0.80		3.38
Outstanding at December 31, 2022	10,404,360	0.67	5.06	2.11	11,219
Vested and expect to vest at December 31, 2022	10,404,360	0.67	5.06	2.11	11,219
Exercisable at December 31, 2022	8,483,792	0.62	4.44	1.76	9,560

Restricted share units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of restricted shares activity


	Number of	Weighted Average
	Restricted Share	Grant Date
	Units	Fair Value
		US$
Nonvested at January 1, 2022	20,437,584	4.98
Granted	13,178,072	2.02
Vested	(6,553,603)	4.67
Forfeited	(7,432,124)	4.19
Nonvested at December 31, 2022	19,629,929	3.39
Expected to vest at December 31, 2022	19,629,929	3.39

JD Employee Awards

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of restricted shares activity


	Number of
	Restricted Share	Weighted Average
	Units	Fair Value
		US$
Nonvested at January 1, 2022	29,429	20.93
Vested	(29,429)	20.93
Nonvested at December 31, 2022	—	—

LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2022

LOSS PER SHARE

Schedule for computing loss per share

Loss per share was computed by dividing net loss available to ordinary shareholders by the weighted average number of ordinary shares outstanding for the years ended December 31, 2020, 2021 and 2022:


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Numerator:
Net loss available to ordinary shareholders of the Company—basic and diluted	(2,080,825)	(2,471,127)	(2,008,005)
Denominator:
Weighted average number of ordinary shares outstanding	667,844,843	950,697,557	1,015,265,686
Basic and diluted loss per share	(3.12)	(2.60)	(1.98)

Schedule of weighted average number of shares excluded from calculation of diluted loss per share.


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Share options	42,253,493	18,640,216	15,028,082
Restricted share units	16,188,798	17,133,658	21,358,045

TAXATION (Tables)

12 Months Ended

Dec. 31, 2022

TAXATION

Schedule of loss by tax jurisdictions


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Loss from PRC operations	1,215,179	2,225,317	1,402,607
Loss from non-PRC operations	495,140	257,368	610,239
Total losses before tax	1,710,319	2,482,685	2,012,846

Schedule of current and deferred portion of income tax expenses included in the consolidated statements of operations and comprehensive loss


	As of December 31,
	2020	2021	2022
	RMB	RMB	RMB
Current tax expenses	—	—	171
Deferred tax benefits	(5,143)	(11,558)	(5,012)
Income tax benefits	(5,143)	(11,558)	(4,841)

Schedule of reconciliation of difference between PRC statutory income tax rate and the Group's effective income tax rate

Reconciliation of the difference between PRC statutory income tax rate and the Group’s effective income tax rate for the years ended December 31, 2020, 2021 and 2022 are as follows:


	For the Year Ended December 31,
	2020		2021		2022
	RMB		RMB		RMB
Statutory tax rate	25.0	%	25.0	%	25.0	%
Effect of different tax rate of subsidiary operation in other jurisdiction	(7.3)	%	(2.6)	%	(7.6)	%
Changes in valuation allowance	(20.7)	%	(25.6)	%	(19.5)	%
Other expenses not deductible for tax purposes	(0.2)	%	(0.1)	%	(0.2)	%
Expired tax loss	(0.2)	%	(0.6)	%	(1.4)	%
True up	(0.2)	%	(0.1)	%	(2.9)	%
Super deduction of research and development expense	3.9	%	4.2	%	6.8	%
Effect of tax rate change of deferred tax liabilities	0	%	0.3	%	0	%
Effective tax rate	0.3	%	0.5	%	0.2	%

Schedule of deferred tax assets and deferred tax liabilities


	As of December 31,
	2021	2022
	RMB	RMB
Deferred tax assets
- Net operating loss carry forwards	2,783,606	3,045,224
- Bad debt provision	—	2,663
- Inventories valuation allowance	37	96
- Accrued expenses	41,039	1,664
- Advertising expenses	6,235	173,525
Less: Valuation allowance	(2,830,917)	(3,223,172)
Net deferred tax assets	—	—
Deferred tax liabilities
- Identifiable intangible assets from business combination	27,000	21,988
Total deferred tax liabilities	27,000	21,988

Schedule of movement of valuation allowance


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Balance at beginning of the year	1,841,225	2,195,870	2,830,917
Addition	354,645	635,047	392,255
Balance at end of the year	2,195,870	2,830,917	3,223,172

CONCENTRATION OF CREDIT RISK (Tables)

12 Months Ended

Dec. 31, 2022

Revenues

CONCENTRATION OF CREDIT RISK

Schedule of concentration of customers


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Customer A	794,685	1,387,685	2,027,548
Customer B	2,214,262	951,328	1,900,540

Accounts receivable

CONCENTRATION OF CREDIT RISK

Schedule of concentration of customers


	As of December 31,
	2021	2022
	RMB	RMB
Customer C	*	41,574
Customer D	*	33,150
Customer E	80,101	*
Customer F	45,689	*

* Less than 10%

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2022

RELATED PARTY TRANSACTIONS

Summary of transactions with major related parties

The table below sets forth the major related parties and their relationships with the Group as of December 31, 2022:

Name of related parties		Relationship with the Group
JD, its subsidiaries and affiliated entity (“JD Group”)⁽¹⁾		Controlling Shareholder of the Company
Walmart, its subsidiaries and affiliates (“Walmart Group”)		Shareholder of the Company


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB
Revenues
Services to JD Group⁽¹⁾	2,214,262	951,328	1,900,540
Services to Walmart Group⁽²⁾	794,685	1,387,685	2,027,548
Operating expenses
Operational support services from JD Group⁽¹⁾	79,038	265,635	664,612
Purchases from JD Group	46,407	44,889	39,439


	As of December 31,
	2021	2022
	RMB	RMB
Current assets:
Amount due from JD Group	424,395	507,107
Amount due from Walmart Group	416,272	553,880
Total	840,667	1,060,987
Current liabilities:
Amount due to JD Group⁽¹⁾	43,042	92,119
Amount due to Walmart Group⁽²⁾	28,718	54,884
Total	71,760	147,003

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY (Tables)

12 Months Ended

Dec. 31, 2022

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY

Summary of condensed balance sheets


	As of December 31,
	2021	2022
	RMB	RMB	US$
			(Note 2)
ASSETS
Current assets:
Cash and cash equivalents	112,374	76,610	11,107
Short-term investments	528,909	1,253,628	181,759
Prepayments and other current assets	3,163	15,921	2,308
Total current assets	644,446	1,346,159	195,174
Investments in subsidiaries, VIE and VIE’s subsidiaries	2,959,723	4,102,926	594,868
Intangible assets, net	186,037	1,554,155	225,331
Total non-current assets	3,145,760	5,657,081	820,199
TOTAL ASSETS	3,790,206	7,003,240	1,015,373
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY
Accrued expenses and other current liabilities	1,577	3,520	510
TOTAL LIABILITIES	1,577	3,520	510
SHAREHOLDERS’ EQUITY
Ordinary shares (US$0.0001 par value, 2,000,000,000 and 2,000,000,000 shares authorized, 955,876,116 and 1,079,881,662 shares issued, 927,776,552 and 1,021,923,242 shares outstanding as of December 31, 2021 and 2022, respectively)	633	688	100
Additional paid-in capital	15,714,015	20,599,549	2,986,653
Accumulated deficit	(11,816,229)	(13,824,234)	(2,004,326)
Accumulated other comprehensive income (loss)	(109,790)	223,717	32,436
TOTAL SHAREHOLDERS’ EQUITY	3,788,629	6,999,720	1,014,863
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	3,790,206	7,003,240	1,015,373

Summary of condensed statements of operations and comprehensive loss


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB	US$
				(Note 2)
Expenses and income (loss)
Operating expenses	(513,407)	(358,458)	(668,231)	(96,883)
Interest income	18,955	29,633	24,366	3,533
Foreign exchange income (loss)	—	(311)	6,702	972
Other operating income	101	13,334	18,163	2,633
Equity in losses of subsidiaries, VIE and VIE’s subsidiaries	(1,210,825)	(2,155,325)	(1,389,005)	(201,387)
Net loss and net loss attributable to the Company	(1,705,176)	(2,471,127)	(2,008,005)	(291,132)
Accretion of convertible redeemable preferred shares	(375,649)	—	—	—
Net loss available to ordinary shareholders	(2,080,825)	(2,471,127)	(2,008,005)	(291,132)
Net Loss	(1,705,176)	(2,471,127)	(2,008,005)	(291,132)
Other comprehensive loss
Foreign currency translation adjustments	(209,963)	(39,487)	333,507	48,354
Total comprehensive loss	(1,915,139)	(2,510,614)	(1,674,498)	(242,778)

Summary of condensed statements of cashflow


	For the Year Ended December 31,
	2020	2021	2022
	RMB	RMB	RMB	US$
				(Note 2)
Net cash provided by operating activities	1,571	42,829	16,869	2,446
Net cash used in investing activities	(20,652)	(4,001,123)	(3,126,808)	(453,345)
Net cash provided by/(used in) financing activities	5,181,447	(936,655)	3,061,020	443,806
Effect of foreign exchange rate changes on cash and cash equivalents	(173,133)	(22,483)	13,155	1,907
Net increase/(decrease) in cash and cash equivalents	4,989,233	(4,917,432)	(35,764)	(5,186)
Cash and cash equivalents, beginning of the year	40,573	5,029,806	112,374	16,293
Cash and cash equivalents, end of the year	5,029,806	112,374	76,610	11,107

ORGANIZATION AND NATURE OF OPERATIONS (Details)	12 Months Ended
ORGANIZATION AND NATURE OF OPERATIONS (Details)	Dec. 31, 2022
Dada Group (HK) Limited ("Dada HK")
ORGANIZATION AND NATURE OF OPERATIONS
Economic ownership (as a percent)	100.00%
Dada Glory Network Technology (Shanghai) Co., Ltd. ("Dada Glory")
ORGANIZATION AND NATURE OF OPERATIONS
Economic ownership (as a percent)	100.00%
Shanghai JD Daojia Yuanxin Information Technology Co., Ltd. ("Shanghai JDDJ")
ORGANIZATION AND NATURE OF OPERATIONS
Economic ownership (as a percent)	100.00%
Shanghai Qusheng Internet Technology Co. Ltd. ("Shanghai Qusheng")
ORGANIZATION AND NATURE OF OPERATIONS
VIEs ownership (as a percent)	100.00%
Shanghai JD Daojia Youheng E-Commerce Information Technology Co., Ltd. ("JDDJ Youheng")
ORGANIZATION AND NATURE OF OPERATIONS
Economic ownership (as a percent)	100.00%

PRINCIPAL ACCOUNTING POLICIES - VIE Arrangements (Details) - Dada Glory ¥ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)
Variable Interest Entity
Percentage of direct ownership	50.00%
Shanghai Qusheng
Variable Interest Entity
Percentage of equity interests pledged by the shareholders of VIE	50.00%
Percentage of net income generated by the VIE payable as monthly service fees	100.00%
Initial term of the exclusive business cooperation agreement	10 years
Service fees	¥ 0
Initial term of the exclusive option agreement	10 years
Percentage of direct ownership	50.00%

PRINCIPAL ACCOUNTING POLICIES - Amounts and balances of the consolidated VIE included in Group's consolidated financial statements after elimination of intercompany balances and transactions (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Variable Interest Entity
Cash and cash equivalents	¥ 1,233,974		¥ 512,830	¥ 5,461,264	$ 178,909
Accounts receivable, net	313,502		352,324		45,454
Amount due from related parties	1,060,987		840,667		153,829
Prepayments and other current assets	606,502		479,017		87,935
Property and equipment, net	16,849		37,555		2,443
Intangible assets, net	1,665,320		332,317		241,449
Operating lease right-of-use assets	37,592		76,811		5,450
Other non-current assets	8,223		33,181		1,192
TOTAL ASSETS	9,045,799		5,280,580		1,311,519
Payable to riders and drivers	794,320		580,983		115,166
Amount due to related parties	147,003		71,760		21,313
Operating lease liabilities	24,460		35,759		3,546
Non-current operating lease liabilities	16,574		46,243		2,404
TOTAL LIABILITIES	2,046,079		1,491,951		$ 296,656
Net Revenues	9,367,595	$ 1,358,174	6,866,262	5,739,989
Net loss	(2,008,005)	(291,132)	(2,471,127)	(1,705,176)
Net cash provided by operating activities	(945,440)	(137,075)	(2,657,580)	(1,108,207)
Net cash used in investing activities	(1,026,393)	$ (148,812)	(686,663)	(229,757)
VIEs
Variable Interest Entity
Cash and cash equivalents	13,968		3,961
Accounts receivable, net	373		760
Amount due from related parties	2,688		476
Prepayments and other current assets	4,122		3,287
Property and equipment, net	84		245
Intangible assets, net	9,302		10,938
Operating lease right-of-use assets			791
Other non-current assets	92		93
TOTAL ASSETS	30,629		20,551
Payable to riders and drivers	304		404
Amount due to related parties	966		32
Accrued expenses and other current liabilities	15,559		12,542
Operating lease liabilities			192
Non-current operating lease liabilities			412
TOTAL LIABILITIES	16,829		13,582
Net Revenues	15,769		13,104	3,293
Net loss	(36,743)		(58,641)	(49,741)
Net cash provided by operating activities	¥ 10,007		4,308	535
Net cash used in investing activities			¥ (859)	¥ (59)
Percentage of consolidated net revenues contributed by VIE	0.20%	0.20%	0.20%	0.10%
Percentage of consolidated total assets accounted for by VIE	0.30%		0.40%		0.30%
Percentage of consolidated total liabilities accounted for by VIE	0.80%		0.90%		0.80%

PRINCIPAL ACCOUNTING POLICIES - Property and equipment, net (Details)	12 Months Ended
	Dec. 31, 2022
Computer equipment \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Computer equipment \| Maximum
Property, Plant and Equipment
Estimated useful lives	4 years
Office facilities \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Office facilities \| Maximum
Property, Plant and Equipment
Estimated useful lives	5 years
Vehicles
Property, Plant and Equipment
Estimated useful lives	5 years
Software \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Software \| Maximum
Property, Plant and Equipment
Estimated useful lives	5 years

PRINCIPAL ACCOUNTING POLICIES - Intangible assets, net (Details)	12 Months Ended
	Dec. 31, 2022
BCA \| Minimum
Finite-Lived Intangible Assets
Useful lives of identifiable intangible assets	5 years
BCA \| Maximum
Finite-Lived Intangible Assets
Useful lives of identifiable intangible assets	7 years
NCC
Finite-Lived Intangible Assets
Useful lives of identifiable intangible assets	7 years
Technology
Finite-Lived Intangible Assets
Useful lives of identifiable intangible assets	3 years 8 months 12 days
Trademark and Domain Name \| Minimum
Finite-Lived Intangible Assets
Useful lives of identifiable intangible assets	9 years
Trademark and Domain Name \| Maximum
Finite-Lived Intangible Assets
Useful lives of identifiable intangible assets	9 years 8 months 12 days

PRINCIPAL ACCOUNTING POLICIES - Disaggregation of Revenues (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Disaggregation of Revenue
Losses from services	¥ (2,008,005)	$ (291,132)	¥ (2,471,127)	¥ (1,705,176)
Total revenues	9,367,595	$ 1,358,174	6,866,262	5,739,989
Operations and support costs
Disaggregation of Revenue
Rider incentives	79,238		88,494	143,916
Rider incentives attributable to transactions where the Group acts as a principal	72,519		64,261	114,229
Consumer incentives	1,013,636		2,782,585	715,883
Selling and marketing expense
Disaggregation of Revenue
Consumer incentives	2,223,109		321,178	1,166,032
Dada Now
Disaggregation of Revenue
Total revenues	3,157,570		2,820,712	3,434,578
Dada Now \| Service
Disaggregation of Revenue
Total revenues	3,082,928		2,753,458	3,377,653
Dada Now \| On-demand delivery services
Disaggregation of Revenue
Total revenues	2,343,206		1,681,121	763,699
Dada Now \| On-demand delivery services \| Operations and support costs
Disaggregation of Revenue
Losses from services	85,177		95,281	76,989
Dada Now \| Sales of goods
Disaggregation of Revenue
Total revenues	74,642		67,254	56,925
JDDJ
Disaggregation of Revenue
Total revenues	6,210,025		4,045,550	2,305,411
JDDJ \| Service
Disaggregation of Revenue
Total revenues	6,205,180		4,045,550	2,305,411
JDDJ \| Fulfillment services and others
Disaggregation of Revenue
Total revenues	2,373,962		1,770,244	1,093,862
JDDJ \| Commission fee, and advertising and marketing services
Disaggregation of Revenue
Total revenues	3,831,218		¥ 2,275,306	¥ 1,211,549
JDDJ \| Sales of goods
Disaggregation of Revenue
Total revenues	¥ 4,845

PRINCIPAL ACCOUNTING POLICIES - Group's advances from customers (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
PRINCIPAL ACCOUNTING POLICIES
Opening balance	¥ 49,515	¥ 26,251	¥ 15,357
Increase, net	44,407	23,264	10,894
Closing balance	93,922	49,515	26,251
Revenue recognized from opening balance	¥ 49,515	¥ 26,251	¥ 15,357

PRINCIPAL ACCOUNTING POLICIES - Additional information (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) item $ / ¥	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
PRINCIPAL ACCOUNTING POLICIES
Foreign currency exchange rate \| $ / ¥	6.8972
Gain on investments	¥ 19,865	¥ 14,524	¥ 7,855
Accounts receivable, net of allowance for doubtful accounts	¥ 10,651	0
Number of reporting units \| item	1
Goodwill impairment loss	¥ 0	0	0
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false]	true
Revenue, Remaining Performance Obligation, Optional Exemption, Variable Consideration [true false]	true
Advertising and marketing expenses	¥ 944,471	574,569	247,858
Sublease income	¥ 5,823	¥ 23,304	¥ 16,086
First service period for options and restricted share units granted to employees and non-employees, including directors	1 year
Second service period for options and restricted share units granted to employees and non-employees, including directors	4 years

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	12 Months Ended
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
FAIR VALUE MEASUREMENTS
Impairment of property and equipment	$ 0	$ 0	$ 0

SHORT-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
SHORT-TERM INVESTMENTS
Wealth management products	¥ 671,188		¥ 568,909
Time deposits	2,031,336		625,000
Total	¥ 2,702,524	$ 391,829	¥ 1,193,909

PREPAYMENTS AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2022 USD ($)
PREPAYMENTS AND OTHER CURRENT ASSETS
Loan provided to third party companies	¥ 285,700	¥ 237,933
VAT receivable	145,868	133,050
Funds receivable from third party mobile and online payment platforms	71,394	49,310
Interest receivable related to bank deposits and wealth management products	61,325	24,779
Advance to suppliers mainly for cloud computing service	32,621	25,667
Deposits mainly for lease of premises	5,569	5,799
Other receivables	3,218	1,384
Prepaid interest expense	807	1,095
Prepayments and other current assets	606,502	¥ 479,017	$ 87,935
Term of the loans paid to third party companies		1 year
Maximum borrowing capacity under the loans paid to third party companies	¥ 400,000	¥ 300,000
Percentage of interest under the loans paid to third party companies		4.50%
Maturity term of each loans under the loans paid to third party companies	3 months

PROPERTY AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
PROPERTY AND EQUIPMENT, NET
Total cost	¥ 101,838		¥ 96,952
Less: Accumulated depreciation	(84,989)		(59,397)
Property and equipment, net	16,849	$ 2,443	37,555
Office facilities
PROPERTY AND EQUIPMENT, NET
Total cost	2,844		5,260
Software
PROPERTY AND EQUIPMENT, NET
Total cost	20,610		18,720
Computer equipment
PROPERTY AND EQUIPMENT, NET
Total cost	18,797		15,551
Vehicles
PROPERTY AND EQUIPMENT, NET
Total cost	285		1,873
Leasehold improvement
PROPERTY AND EQUIPMENT, NET
Total cost	¥ 59,302		¥ 55,548

PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
PROPERTY AND EQUIPMENT, NET
Depreciation expenses	¥ 27,055	¥ 18,826

INTANGIBLE ASSETS, NET (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Finite-Lived Intangible Assets [Line Items]
Less: Accumulated amortization	¥ (1,586,868)		¥ (1,062,325)
Intangible assets, net	1,665,320	$ 241,449	332,317
BCA
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,235,457		427,010
NCC
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	580,678		531,579
Trademark and domain name
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	340,053		340,053
Technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	¥ 96,000		¥ 96,000

INTANGIBLE ASSETS, NET - Additional information (Details) ¥ in Thousands, $ in Thousands		12 Months Ended
	Feb. 28, 2022 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Feb. 28, 2022 USD ($)
INTANGIBLE ASSETS, NET
Amortization expenses		¥ 469,903	¥ 173,741
JD Investment
INTANGIBLE ASSETS, NET
Intangible asset	¥ 1,605,839			$ 254,000
Term of years	5 years

INTANGIBLE ASSETS, NET - Estimated Amortization Expense (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
INTANGIBLE ASSETS, NET
2023	¥ 446,324
2024	396,119
2025	396,112
2026	363,825
2027 and thereafter	62,940
Intangible assets, net	¥ 1,665,320	$ 241,449	¥ 332,317

OPERATING LEASES - Supplemental cash flow information related to operating leases (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
OPERATING LEASES
Cash payments for amounts included in measurement of liabilities	¥ 36,890	¥ 49,864	¥ 48,890
New operating lease assets obtained in exchange for operating lease liabilities	5,836	18,744	24,688
ROU modification due to early surrender	(11,873)	(3,154)
Lease liability modification due to early surrender	12,705	2,778
Operating Lease, Cost	35,973	50,537	47,915
Short-term Lease	¥ 9,031	¥ 9,256	¥ 13,548
Weighted average remaining lease term	1 year 8 months 12 days	2 years 6 months
Weighted average discount rate	4.80%	4.80%

OPERATING LEASES - Future lease payments under operating leases (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
OPERATING LEASES
Within one year	¥ 25,836		¥ 38,669
Within a period of more than one year but not more than two years	16,878		28,694
Within a period of more than two year but not more than three years			19,498
Total future lease payments	42,714		86,861
Less: imputed interest	1,680		4,859
Total lease liability balance	41,034		82,002
Less: Current operating lease liabilities	24,460	$ 3,546	35,759
Long-term operating lease liabilities	16,574	$ 2,404	46,243
Future lease payments for short-term leases	¥ 2,061		¥ 3,620

SHORT-TERM LOAN (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
SHORT-TERM LOAN
Short-term bank borrowing	¥ 100,000	$ 14,499	¥ 100,000

SHORT-TERM LOAN- Additional information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Short-term Debt [Line Items]
Amount of borrowings	¥ 100,000		¥ 100,000
Interest rate	1.80%		2.75%
Borrowing term	1 year	1 year
Interest expenses	¥ 10,946	$ 1,587	¥ 13,806	¥ 11,830
Proceeds from short-term bank borrowing	1,118,000	162,095	100,000	¥ 600,000
Repayment of short-term bank borrowing	1,118,000	$ 162,095	¥ 600,000
Bank Time Deposits
Short-term Debt [Line Items]
Time deposits	¥ 100,000

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Salaries and welfare payables	¥ 227,338		¥ 170,813
Payables to retailers on JDDJ	220,913		143,268
Accrued marketing expenses	179,608		106,307
Advance for online marketing services	88,694		48,518
Professional fee payable	62,048		36,745
Deposits from retailers and outsourced agencies	56,466		39,423
Advance for delivery services	37,222		23,894
Tax payables	13,581		12,693
Others	46,073		38,745
Total	¥ 931,943	$ 135,119	¥ 620,406

SHARE-BASED COMPENSATION (Details) ¥ in Thousands	1 Months Ended	12 Months Ended
SHARE-BASED COMPENSATION (Details) ¥ in Thousands	Jun. 30, 2020 CNY (¥)	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares	Jan. 01, 2019 $ / shares
Incentive Compensation Plan 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized		61,605,996
Options expire term		10 years
Incentive Compensation Plan 2015 [Member] \| Employee options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| ¥				¥ 131,344
Share options granted		0	0	4,936,000
Incentive Compensation Plan 2015 [Member] \| Non-employee options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		4 years
Stock-based compensation expense \| ¥	¥ 0	¥ 0	¥ 0	¥ 34,285
Share options granted		0	0	0
Incentive Compensation Plan 2015 [Member] \| Non-employee options \| ASU 2018-07
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of the ordinary share (per share) \| $ / shares					$ 2.26
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized		45,765,386
Options expire term		10 years	10 years
Increase in authorized share capital per annum		1.00%
Shares exercised through reissuance of treasury stock		4,278,924
2015 Plan and 2020 Plan \| Employee options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)		4 years
Stock-based compensation expense \| ¥		¥ 30,928	¥ 52,569	¥ 131,344

SHARE-BASED COMPENSATION - Fair value of the options at the respective grant (Details) - Incentive Compensation Plan 2015 [Member] - Non-employee options	12 Months Ended
	Dec. 31, 2020 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility, minimum	37.00%
Expected volatility, maximum	41.00%
Risk-free interest rate, minimum	1.70%
Risk-free interest rate, maximum	2.30%
Exercise multiples	2.2
Expected dividend yield	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of underlying ordinary shares	$ 4.08
Fair value of share option	3.32
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of underlying ordinary shares	5.79
Fair value of share option	$ 5.03

SHARE-BASED COMPENSATION - Share option under the option plans (Details) - Non-employee options - Incentive Compensation Plan 2015 [Member] $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 $ / shares	Dec. 31, 2022 USD ($) $ / shares shares
Share option activities
Outstanding at beginning of the period (in shares) \| shares	23,658,649	23,658,649
Exercised (in shares) \| shares	(12,030,257)	(12,030,257)
Forfeited (in shares) \| shares	(1,224,032)	(1,224,032)
Outstanding at end of the period (in shares) \| shares	10,404,360	10,404,360	23,658,649	23,658,649
Vested and expect to vest (in shares) \| shares	10,404,360						10,404,360
Options exercisable (in shares) \| shares	8,483,792						8,483,792
Weighted average exercise price
Outstanding at beginning of the period (in dollars per share)		$ 0.50
Exercised (in dollars per share)		0.22
Forfeited (in dollars per share)		0.80
Outstanding at end of the period (in dollars per share)		$ 0.67		$ 0.50
Vested and expect to vest (in dollars per share)							$ 0.67
Options exercisable (in dollars per share)							0.62
Weighted average remaining contractual term (Years)
Outstanding (years)	5 years 21 days	5 years 21 days	5 years 5 months 12 days	5 years 5 months 12 days
Vested and expect to vest (years)	5 years 21 days	5 years 21 days
Options exercisable (years)	4 years 5 months 8 days	4 years 5 months 8 days
Weighted average grant date fair value
Outstanding at beginning of the period (in dollars per share)		$ 1.69
Exercised (in dollars per share)		0.76
Forfeited (in dollars per share)		3.38
Outstanding at end of the period (in dollars per share)		$ 2.11		$ 1.69
Vested and expect to vest (in dollars per share)							2.11
Options exercisable (in dollars per share)							$ 1.76
Aggregate Intrinsic Value
Outstanding at beginning of the period \| $		$ 52,644
Outstanding at ending of the period \| $		$ 11,219		$ 52,644
Vested and expect to vest \| $							$ 11,219
Options exercisable \| $							$ 9,560
Weighted-average grant-date fair value of options granted						$ 4.19
Total intrinsic value of options exercised \| ¥	¥ 203,841		¥ 674,174		¥ 450,056
Total fair value of options vested \| ¥	43,889		¥ 57,695		¥ 31,807
Unrecognized compensation expense \| ¥	¥ 27,984
Weighted average remaining service period	11 months 23 days	11 months 23 days

SHARE-BASED COMPENSATION - Restricted share units (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares	Dec. 31, 2021 $ / shares shares	Dec. 31, 2020 $ / shares shares	Dec. 31, 2022 ¥ / shares	Dec. 31, 2021 ¥ / shares	Dec. 31, 2020 ¥ / shares
Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	13,178,072
Employee and Non employee options \| 2020 Plan \| Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	13,178,072	9,253,000
Vesting period (in years)		4 years
Fair value of the ordinary share (per share) \| (per share)		$ 6.04			¥ 38.48
Employee options \| 2020 Plan \| Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of the ordinary share (per share) \| (per share)	$ 2.02			¥ 13.94
Employee options \| 2015 Plan and 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Employee options \| Vesting schedule, one \| 2020 Plan \| Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	2 years
Employee options \| Vesting schedule, two \| 2020 Plan \| Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Employees and executives options \| 2015 Plan and 2020 Plan \| Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			17,995,626
Fair value of the ordinary share (per share) \| (per share)			$ 4.36			¥ 28.42
Employees and executives options \| Vesting schedule, one \| 2015 Plan and 2020 Plan \| Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			1 year
Employees and executives options \| Vesting schedule, two \| 2015 Plan and 2020 Plan \| Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Employees and executives options \| Vesting schedule, three \| 2015 Plan and 2020 Plan \| Restricted share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			6 years

SHARE-BASED COMPENSATION - Restricted share units under 2015 and 2020 plan (Details) - Restricted share units ¥ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 CNY (¥) $ / shares shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at the beginning of the period (in shares) \| shares	20,437,584
Granted (in shares) \| shares	13,178,072
Vested (in shares) \| shares	(6,553,603)
Forfeited (in shares) \| shares	(7,432,124)
Nonvested the end of the period (in shares) \| shares	19,629,929		20,437,584
Expected to vest \| shares	19,629,929	19,629,929
Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share) \| $ / shares		$ 4.98
Granted (in dollars per share) \| $ / shares		2.02
Vested (in dollars per share) \| $ / shares		4.67
Forfeited (in dollars per share) \| $ / shares		4.19
Nonvested at the ending of the period (in dollars per share) \| $ / shares		3.39
Expected to vest (in dollars per share) \| $ / shares		$ 3.39
Stock-based compensation expense \| ¥	¥ 183,798		¥ 146,996	¥ 185,138
Total fair value of restricted share units vested \| ¥	214,134		¥ 115,893	¥ 79,876
Unrecognized compensation expense \| ¥	¥ 465,812	$ 465,812
Weighted average remaining service period	2 years 11 months 12 days

SHARE-BASED COMPENSATION - JD's Share incentive plan (Details) - JD Employee Awards ¥ in Thousands		12 Months Ended
	Jan. 01, 2019 $ / shares	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 $ / shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense \| ¥		¥ 4,004		¥ 8,378	¥ 9,311
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at the beginning of the period (in shares) \| shares		29,429
Vested (in shares) \| shares		(29,429)
Nonvested the end of the period (in shares) \| shares				29,429
Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)			$ 20.93
Vested (in dollars per share)			$ 20.93
Nonvested at the ending of the period (in dollars per share)
ASU 2018-07
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of the ordinary share (per share)	$ 20.93

ORDINARY SHARES (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	1 Months Ended					12 Months Ended
	Mar. 31, 2022 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares	Jun. 30, 2020 CNY (¥) shares	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 ¥ / shares	Dec. 31, 2021 $ / shares	Dec. 31, 2020 $ / shares	Jun. 30, 2020 $ / shares
ORDINARY SHARES
Issuance of ordinary shares \| ¥						¥ 5,057,760			¥ 5,174,013
Par value (in dollars per share) \| $ / shares							$ 0.0001				$ 0.0001
Proceeds from ordinary shares issued						3,451,921	$ 500,481
Value of shares repurchased						¥ 401,566	$ 60,145	¥ 968,409
Share repurchase (in shares) \| shares						34,137,780	34,137,780
2022 share repurchase program, Authorized amount \| $	$ 70,000,000
2022 share repurchase program, Period in force	12 months
2022 share repurchase program, Weighted average price of shares repurchased \| (per share)						¥ 12.13	$ 1.76
Share subscription agreement
ORDINARY SHARES
Issuance of ordinary shares \| ¥			¥ 800
Issuance of ordinary shares (in shares) \| shares			109,215,017
Proceeds from ordinary shares issued \| ¥			¥ 546
BCA valuation \| ¥			¥ 254
Percentage of Company's issued and outstanding shares held			52.00%
Number of shares agreed to issue and sell \| shares			109,215,017
2021 Share Repurchase Program
ORDINARY SHARES
Value of shares repurchased		$ 150,000				¥ 968,409	$ 150,000
Share repurchase (in shares) \| shares						28,099,564	28,099,564
Weighted average price per share of shares repurchased \| (per share)							$ 5.34			¥ 34.03
IPO
ORDINARY SHARES
Issuance of ordinary shares (in shares) \| shares					89,491,548
Par value (in dollars per share) \| $ / shares													$ 4.00
Proceeds from ordinary shares issued \| ¥					¥ 2,357,823
Follow On Public Offering
ORDINARY SHARES
Issuance of ordinary shares (in shares) \| shares				36,000,000
Par value (in dollars per share) \| $ / shares												$ 12.50
Proceeds from ordinary shares issued \| ¥				¥ 2,816,190

LOSS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares	Dec. 31, 2020 CNY (¥) ¥ / shares shares
Numerator:
Net loss available to ordinary shareholders of the Company-basic and diluted	¥ (2,008,005)	$ (291,132)	¥ (2,471,127)	¥ (2,080,825)
Denominator
Weighted average number of ordinary shares outstanding-basic	1,015,265,686	1,015,265,686	950,697,557	667,844,843
Weighted average number of ordinary shares outstanding-diluted	1,015,265,686	1,015,265,686	950,697,557	667,844,843
Loss per share-basic \| (per share)	¥ (1.98)	$ (0.29)	¥ (2.60)	¥ (3.12)
Loss per share-diluted \| (per share)	¥ (1.98)	$ (0.29)	¥ (2.60)	¥ (3.12)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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LOSS PER SHARE - Weighted average number of shares excluded from calculation of diluted loss per share (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share options
LOSS PER SHARE
Antidilutive securities excluded from computation of diluted loss per share (in shares)	15,028,082	18,640,216	42,253,493
Restricted share units
LOSS PER SHARE
Antidilutive securities excluded from computation of diluted loss per share (in shares)	21,358,045	17,133,658	16,188,798

TAXATION (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
TAXATION (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 HKD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 CNY (¥)
Income Tax Disclosure [Line Items]
Income tax rate (as a percent)	25.00%	25.00%	25.00%
Net operating loss carry forwards \| ¥		¥ 11,134,427	¥ 8,625,584	¥ 12,180,894
Hong Kong
Income Tax Disclosure [Line Items]
Income tax rate (as a percent)	16.50%
Hong Kong \| First HK dollar 2,000 of profits of corporations
Income Tax Disclosure [Line Items]
Income tax rate (as a percent)	8.25%
Amount of assessable profits under lowered tax rate \| $	$ 2,000
Mainland China
Income Tax Disclosure [Line Items]
Income tax rate (as a percent)	25.00%
Mainland China \| High and New Technology Enterprises ("HNTE")
Income Tax Disclosure [Line Items]
Income tax rate (as a percent)	15.00%	15.00%	15.00%

TAXATION - Loss by tax jurisdictions (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
TAXATION
Loss from PRC operations	¥ 1,402,607		¥ 2,225,317	¥ 1,215,179
Loss from non-PRC operations	610,239		257,368	495,140
Total losses before tax	¥ 2,012,846	$ 291,834	¥ 2,482,685	¥ 1,710,319

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

TAXATION - Current and deferred portion of income tax expenses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
TAXATION
Current tax expenses	¥ 171
Deferred tax benefits	(5,012)		¥ (11,558)	¥ (5,143)
Income tax benefits	¥ (4,841)	$ (702)	¥ (11,558)	¥ (5,143)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

TAXATION - Effective Income tax reconciliation (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
TAXATION
Statutory tax rate	25.00%	25.00%	25.00%
Effect of different tax rate of subsidiary operation in other jurisdiction	(7.60%)	(2.60%)	(7.30%)
Changes in valuation allowance	(19.50%)	(25.60%)	(20.70%)
Other expenses not deductible for tax purposes	(0.20%)	(0.10%)	(0.20%)
Expired tax loss	(1.40%)	(0.60%)	(0.20%)
True up	(2.90%)	(0.10%)	(0.20%)
Super deduction of research and development expenses	6.80%	4.20%	3.90%
Effect of tax rate change of deferred tax liabilities	0.00%	0.30%	0.00%
Effective tax rate	0.20%	0.50%	0.30%

TAXATION - Deferred tax assets and deferred tax liabilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets
Net operating loss carry forwards	¥ 3,045,224	¥ 2,783,606
Bad debt provision	2,663
Inventories valuation allowance	96	37
Accrued expenses	1,664	41,039
Advertising expenses	173,525	6,235
Less: Valuation allowance	(3,223,172)	(2,830,917)	¥ (2,195,870)	¥ (1,841,225)
Deferred tax liabilities
Identifiable intangible assets from business combination	21,988	27,000
Total deferred tax liabilities	¥ 21,988	¥ 27,000

TAXATION - Movement of valuation allowance (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
TAXATION
Balance at beginning of the year	¥ 2,830,917	¥ 2,195,870	¥ 1,841,225
Addition	392,255	635,047	354,645
Balance at end of the year	¥ 3,223,172	¥ 2,830,917	¥ 2,195,870

CONCENTRATION OF CREDIT RISK - Revenues (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
CONCENTRATION OF CREDIT RISK
Net Revenues	¥ 9,367,595	$ 1,358,174	¥ 6,866,262	¥ 5,739,989
Customer A \| Revenues
CONCENTRATION OF CREDIT RISK
Net Revenues	2,027,548		1,387,685	794,685
Customer B \| Revenues
CONCENTRATION OF CREDIT RISK
Net Revenues	¥ 1,900,540		¥ 951,328	¥ 2,214,262

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

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+ Details

CONCENTRATION OF CREDIT RISK - Accounts receivable (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
CONCENTRATION OF CREDIT RISK
Accounts receivable, net	¥ 313,502	$ 45,454	¥ 352,324
Customer C \| Accounts receivable
CONCENTRATION OF CREDIT RISK
Accounts receivable, net	41,574
Customer D \| Accounts receivable
CONCENTRATION OF CREDIT RISK
Accounts receivable, net	¥ 33,150
Customer E \| Accounts receivable
CONCENTRATION OF CREDIT RISK
Accounts receivable, net			80,101
Customer F \| Accounts receivable
CONCENTRATION OF CREDIT RISK
Accounts receivable, net			¥ 45,689

CONCENTRATION OF CREDIT RISK (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Denominated in RMB
CONCENTRATION OF CREDIT RISK
Cash and cash equivalents, restricted cash and short-term investments	¥ 3,035,742	¥ 1,106,546

RELATED PARTY TRANSACTIONS (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Revenues	¥ 3,928,088	¥ 2,339,013	¥ 3,008,947
Operating expenses	664,612	265,635	79,038
Purchases from JD Group	39,439	44,889	46,407
JD Group
Related Party Transaction [Line Items]
Revenues	1,900,540	951,328	2,214,262
Walmart Group
Related Party Transaction [Line Items]
Revenues	¥ 2,027,548	¥ 1,387,685	¥ 794,685

- Definition

Direct costs arising from transactions with related parties who are not affiliates or joint Ventures. These costs are categorized as cost of goods sold.

+ References

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RELATED PARTY TRANSACTIONS - Balances with Major related parties (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Current assets:
Total	¥ 1,060,987	$ 153,829	¥ 840,667
Current liabilities:
Total	147,003	$ 21,313	71,760
JD Group
Current assets:
Total	507,107		424,395
Current liabilities:
Total	92,119		43,042
Walmart Group
Current assets:
Total	553,880		416,272
Current liabilities:
Total	¥ 54,884		¥ 28,718

- Definition

The aggregate amount of receivables to be collected from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth, at the financial statement date. which are usually due within one year (or one business cycle).

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- Definition

Carrying amount as of the balance sheet date of obligations due all related parties. For classified balance sheets, represents the current portion of such liabilities (due within one year or within the normal operating cycle if longer).

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+ Details

RELATED PARTY TRANSACTIONS - Additional information (Details)	12 Months Ended
	Dec. 31, 2022
JD Group
Related Party Transaction [Line Items]
Purchase agreement term (in years)	1 year
JD Group \| Operational support services \| Minimum
Related Party Transaction [Line Items]
Service Agreement term (in years)	1 year
JD Group \| Operational support services \| Maximum
Related Party Transaction [Line Items]
Service Agreement term (in years)	3 years
JD Group \| BCA
Related Party Transaction [Line Items]
Service Agreement term (in years)	6 years
Walmart Group \| BCA
Related Party Transaction [Line Items]
Service Agreement term (in years)	1 year

EMPLOYEE BENEFIT (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
EMPLOYEE BENEFIT (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
EMPLOYEE BENEFIT
Employee benefit expenses	¥ 209,769	¥ 177,521	¥ 77,708

RESTRICTED NET ASSETS (Details) ¥ in Thousands	12 Months Ended
RESTRICTED NET ASSETS (Details) ¥ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
RESTRICTED NET ASSETS
Appropriation of after-tax income to statutory surplus reserve fund (as a percentage)	10
Threshold percentage of after-tax income required to be appropriated towards reserve until the reserve balance reaches a specified percentage of registered capital.	50
Restricted net assets	¥ 9,413,346	¥ 9,409,485

SUBSEQUENT EVENTS (Details) - Subsequent Event - JD.com [Member]	Apr. 25, 2023 shares
Subsequent Event [Line Items]
Number of share issued	18,927,876
Approximate percentage of issued and outstanding shares	53.90%

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED BALANCE SHEETS (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2019 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 1,233,974	$ 178,909	¥ 512,830	¥ 5,461,264
Short-term investments	2,702,524	391,829	1,193,909
Prepayments and other current assets	606,502	87,935	479,017
Total current assets	6,360,210	922,145	3,443,111
Intangible assets, net	1,665,320	241,449	332,317
Total non-current assets	2,685,589	389,374	1,837,469
TOTAL ASSETS	9,045,799	1,311,519	5,280,580
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
Accrued expenses and other current liabilities	931,943	135,119	620,406
TOTAL LIABILITIES	2,046,079	296,656	1,491,951
SHAREHOLDERS' EQUITY
Ordinary shares (US$0.0001 par value, 2,000,000,000 and 2,000,000,000 shares authorized, 955,876,116 and 1,079,881,662 shares issued, 927,776,552 and 1,021,923,242 shares outstanding as of December 31, 2021 and 2022, respectively)	688	100	633
Additional paid-in capital	20,599,549	2,986,653	15,714,015
Accumulated deficit	(13,824,234)	(2,004,326)	(11,816,229)
Accumulated other comprehensive income (loss)	223,717	32,436	(109,790)
TOTAL SHAREHOLDERS' EQUITY	6,999,720	1,014,863	3,788,629	¥ 7,027,955	¥ (7,190,962)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	9,045,799	1,311,519	5,280,580
Reportable legal entity \| Parent
Current assets:
Cash and cash equivalents	76,610	11,107	112,374
Short-term investments	1,253,628	181,759	528,909
Prepayments and other current assets	15,921	2,308	3,163
Total current assets	1,346,159	195,174	644,446
Investments in subsidiaries, VIE and VIE's subsidiaries	4,102,926	594,868	2,959,723
Intangible assets, net	1,554,155	225,331	186,037
Total non-current assets	5,657,081	820,199	3,145,760
TOTAL ASSETS	7,003,240	1,015,373	3,790,206
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
Accrued expenses and other current liabilities	3,520	510	1,577
TOTAL LIABILITIES	3,520	510	1,577
SHAREHOLDERS' EQUITY
Ordinary shares (US$0.0001 par value, 2,000,000,000 and 2,000,000,000 shares authorized, 955,876,116 and 1,079,881,662 shares issued, 927,776,552 and 1,021,923,242 shares outstanding as of December 31, 2021 and 2022, respectively)	688	100	633
Additional paid-in capital	20,599,549	2,986,653	15,714,015
Accumulated deficit	(13,824,234)	(2,004,326)	(11,816,229)
Accumulated other comprehensive income (loss)	223,717	32,436	(109,790)
TOTAL SHAREHOLDERS' EQUITY	6,999,720	1,014,863	3,788,629
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	¥ 7,003,240	$ 1,015,373	¥ 3,790,206

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED BALANCE SHEETS (Parenthetical) (Details) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
CONDENSED BALANCE SHEETS
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	2,000,000,000	2,000,000,000
Ordinary shares, shares issued	1,079,881,662	955,876,116
Ordinary shares, shares outstanding	1,021,923,242	927,776,552
Reportable legal entity \| Parent
CONDENSED BALANCE SHEETS
Ordinary shares, par value	$ 0.0001	$ 0.0001
Ordinary shares, shares authorized	2,000,000,000	2,000,000,000
Ordinary shares, shares issued	1,079,881,662	955,876,116
Ordinary shares, shares outstanding	1,021,923,242	927,776,552

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Expenses and income (loss)
Foreign exchange income (loss)	¥ 7,419	$ 1,076	¥ (1,126)
Other operating income	120,921	17,532	156,714	¥ 60,779
Net loss	(2,008,005)	(291,132)	(2,471,127)	(1,705,176)
Accretion of convertible redeemable preferred shares				(375,649)
Net loss available to ordinary shareholders of Dada Nexus Limited	(2,008,005)	(291,132)	(2,471,127)	(2,080,825)
Net loss	(2,008,005)	(291,132)	(2,471,127)	(1,705,176)
Other comprehensive loss
Foreign currency translation adjustments	333,507	48,354	(39,487)	(209,963)
Total comprehensive loss	(1,674,498)	(242,778)	(2,510,614)	(1,915,139)
Reportable legal entity \| Parent
Expenses and income (loss)
Operating expenses	(668,231)	(96,883)	(358,458)	(513,407)
Interest income	24,366	3,533	29,633	18,955
Foreign exchange income (loss)	6,702	972	(311)
Other operating income	18,163	2,633	13,334	101
Equity in losses of subsidiaries, VIE and VIE's subsidiaries	(1,389,005)	(201,387)	(2,155,325)	(1,210,825)
Net loss	(2,008,005)	(291,132)	(2,471,127)	(1,705,176)
Accretion of convertible redeemable preferred shares				(375,649)
Net loss available to ordinary shareholders of Dada Nexus Limited	(2,008,005)	(291,132)	(2,471,127)	(2,080,825)
Net loss	(2,008,005)	(291,132)	(2,471,127)	(1,705,176)
Other comprehensive loss
Foreign currency translation adjustments	333,507	48,354	(39,487)	(209,963)
Total comprehensive loss	¥ (1,674,498)	$ (242,778)	¥ (2,510,614)	¥ (1,915,139)

ADDITIONAL FINANCIAL INFORMATION OF PARENT COMPANY - CONDENSED STATEMENTS OF CASHFLOW (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
CONDENSED STATEMENTS OF CASHFLOW
Net cash provided by operating activities	¥ (945,440)	$ (137,075)	¥ (2,657,580)	¥ (1,108,207)
Net cash used in investing activities	(1,026,393)	(148,812)	(686,663)	(229,757)
Net cash provided by/(used in) financing activities	3,054,854	442,911	(1,554,505)	5,891,550
Effect of foreign exchange rate changes on cash and cash equivalents	13,998	2,029	(51,457)	(188,664)
Net increase/(decrease) in cash and cash equivalents	1,097,019	159,053	(4,950,205)	4,364,922
Cash and cash equivalents and restricted cash, beginning of the year	570,850	82,765	5,521,055	1,156,133
Cash and cash equivalents and restricted cash, end of the year	1,667,869	241,818	570,850	5,521,055
Reportable legal entity \| Parent
CONDENSED STATEMENTS OF CASHFLOW
Net cash provided by operating activities	16,869	2,446	42,829	1,571
Net cash used in investing activities	(3,126,808)	(453,345)	(4,001,123)	(20,652)
Net cash provided by/(used in) financing activities	3,061,020	443,806	(936,655)	5,181,447
Effect of foreign exchange rate changes on cash and cash equivalents	13,155	1,907	(22,483)	(173,133)
Net increase/(decrease) in cash and cash equivalents	(35,764)	(5,186)	(4,917,432)	4,989,233
Cash and cash equivalents and restricted cash, beginning of the year	112,374	16,293	5,029,806	40,573
Cash and cash equivalents and restricted cash, end of the year	¥ 76,610	$ 11,107	¥ 112,374	¥ 5,029,806