Good morning, ladies and gentlemen, and thank you for standing by for Dada Q1 2022 earnings conference call. At this time, all participants are in listen-only mode. After the management prepared remarks, there will be a question and answer session. As a reminder, today's conference call is being recorded. I'll now turn the meeting over to your host for today's call, Ms. Caroline Dong, Head of Investor Relations for Dada. Please proceed, Caroline. Thank you, operator. Hello, everyone, and thank you for joining our Q1 2022 earnings conference call. On the call today from Dada, we have Mr. Philip Kuai, Chairman and CEO, Mr. Beck Chen, CFO, and Mr. Jun Yang, co-founder and CTO. Mr. Kuai will talk about our operations and company highlights, then Mr. Chen will discuss the financials and guidance. They will all be available to answer your questions during the Q&A session that follows. Before we begin, I'd like to remind you that this conference call contains forward-looking statements. Please refer to our latest specific forward statement in the earnings press release on our IR website. Also, during this call, we will discuss the non-GAAP financial measures. Please also refer to our earnings press release, which contains a reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during this conference call are in RMB. It's now my pleasure to introduce our chairman and CEO, Mr. Kuai. Philip, please go ahead. Thank you, Caroline, and thank you all very much for joining us today. We are pleased to announce another strong quarter and an excellent start to the year. During the Q1 of 2022, Dada Group delivered revenue growth of 74% year-over-year on a comparable net basis, fully demonstrating our resilient business model despite pressures from the current macro environment. As usual, I will first go through some key observations and highlights of our recent progress before moving on to updates on our two platforms. Beck Chen will then go through our financial results in greater details. In terms of the regulatory environment, the political bureau of the CPC Central Committee has recently held a meeting to analyze the current economic situation, where leadership emphasized the necessity to promote the healthy development of the platform economy, including completing the special rectification, implementing regular supervision, and introducing specific measures to support the robust development of the platform economy in compliance with laws and regulations. Under the overall guidance of the CPC and the government, Dada Group adheres to compliant operations while driving sustainable business growth. We have been growing our business rapidly while actively fulfilling our responsibility as a platform, making every effort to elevate the platform economy to a new level. Since the beginning of the year, the COVID-19 outbreak in some cities, including Shenzhen, Shanghai, and Beijing, have led to the initiation of containment measures, including temporary close off or lockdown. As an approved enterprise by local governments to maintain the supply of daily necessities, Dada Group has been involved in anti-pandemic support initiatives. For merchants, we strive to provide delivery capabilities to support their online operations. For consumers, we ensure price stability of products on our platforms. For riders, we help eligible riders to obtain COVID travel passes and provide special subsidies. For local governments, we donate personal protection equipment, help government agencies with the distribution of supply packages to residents, and engage in public welfare activities for pandemic control. Now, I would like to provide updates on our deepened cooperation with JD.com. Since JD.com's increased investments in Dada Group has been completed at the end of February, our omni-channel business cooperation with JD.com has further strengthened. In the Q1, the GMV of ShopNow or Xiaoshigou, the unified brand for all on-demand retail services within the JD ecosystem, increased by more than three times year-over-year. During the Q1, we further expanded the geographic coverage of the Nearby or Fujin Pingdao, which is one of the major entry points of ShopNow. As a result, Nearby gained more exposures among JD users. In addition, we continue to improve the click-through rates and conversion rates by upgrading app design and operations. Now, let's spend some time on JDDJ, the leading local on-demand retail platform in China. Since March, China's consumption growth has been under pressure due to the pandemic resurgence. However, the national policy directive towards building a large national unified market and unlocking the full potential of internal circulation is very clear, and the overall trend towards domestic consumption recovery will not change. The promotion of the deep integration of online offline consumption to encourage the development of new consumption formats is one of the most important drivers of continued recovery and also the growth of consumption. JDDJ has always been committed to meeting the diverse needs of consumers through innovative models. April fifteenth marks the seventh anniversary of JDDJ. This year, for the first time, we launched the April fifteenth Intra-City Shopping Festival together with JD.com on both JDDJ and Shop Now. During the festival, the average daily GMV of categories such as FMCG and fresh food exceeded that of the last year's Double Eleven shopping festival. While the GMV of consumer electronics, home appliance, and many other categories more than doubled year-over-year. At the end of March 2022, the number of annual active users on JDDJ increased by 47% year-over-year to 67.9 million. During the Q1, JDDJ continued to expand the category and the merchant coverage, deepen strategic cooperation with brands, and innovate in digital solutions so as to empower our partners and better serve more and more users. Firstly, we continue to expand the category and the merchant coverage. I will start with our supermarket category. So far, we have established partnership with 86 out of the top 100 supermarket chains in China. During the quarter, we also established new partnerships with regional winners such as Pang Donglai in Henan province. Driven by the Chinese New Year shopping festival and the March 8th campaign, as well as enhanced user mind share, the year-over-year GMV growth of supermarkets on JDDJ accelerated in the Q1. In addition, the GMV of leading regional supermarket chains such as Zhongbai and Rainbow (Tianhong) more than doubled on a sequential basis during the quarter. Let's move on to the consumer electronics and the home appliance category. In the smartphone sub-category, we newly launched smartphone trade-in program, which enhanced our capability to serve the full life cycle needs of smartphone buyers and improves conversion rate. In the PC and digital products sub-category, we further expanded offerings and established new partnerships with leading brands, including iFLYTEK and Nintendo. In the home appliance sub-category, total GMV maintained rapid growth on a sequential basis, driven by our one city, one flagship local home appliance chain strategy and enrichment of both major and small home appliance supplies. In the mom and baby category, we have deepened our cooperation with leading chains such as Kidswant and Babyland, and strengthened the synergy with Shop Now. As a result, the GMV of mom and baby chains on JDDJ increased by more than eight times year-over-year in the Q1. Secondly, we further deepen the strategic cooperation with brands. In the Q1, the year-over-year revenue growth of our online marketing service was around 180%. During the quarter, we have signed several new partnerships with packaged food brands such as CP Foods, Three Squirrels, and Goodfarmer. At the same time, as more and more brands from new categories generates meaningful sales on JDDJ, the categories of brands that we directly partner with also keep expanding. For example, in addition to the brands mentioned above, we have recently established cooperation with household product brands, including ASD. The innovation is at the core of our partnership with brands. In this quarter, we launched a new marketing campaign named Deliver the Best to Your Home, or, which features mostly selection of products based on the prevailing consumption trends and help brands promote trendy best sellers. In March, the theme of our series is organic foods. During the campaign, the sales of milk powder, and other products from brands including Yili, Mengniu, and Junlebao more than doubled on a year-on-year basis. Thirdly, we continue to innovate in digital solutions to empower retailers and brands. Excuse me, for who is not speaking, could you please just mute yourself, please? Thank you. Certainly, we continue to innovate in digital solutions to empower retailers and brands. Haibo, our omni-channel operating systems for retailers, continue to empower more merchants to carry out O2O operations across multiple channels efficiently. As of the end of March, the Haibo system has been deployed in more than 6,700 retail chain stores, including about 3,000 stores of around 50 top 100 supermarket chains in China. To help improve our brand partners', sales efficiency, we have recently launched the Earth Grid System or Kunce system, which visualize brands' online inventory down to a 3x3-kilometers grid level, helping brands to optimize point of sales coverage and gain original sales share. As of now, more than 30 brands in food and beverage, grain and oil, mom and baby care products, and other categories have adopted the Kunce system. The effectiveness of Kunce system to help brands identify sales opportunities and grow sales has been tested. Since Kimberly-Clark's adoption of Kunce system, the point of sales coverage of Kotex, one of its core products sold in CR Vanguard supermarkets, increased by more than 20 percentage points during the March 8th campaign, and the sales increased by more than 20 times on a sequential basis. Regarding our digitized in-store picking service, Dada Picking, it has been fully rolled out to all of the Walmart stores nationwide by the end of March. In addition, we have established partnership with Carrefour and helped it increase picking fulfillment rate by 20 percentage points. Dada Picking's empowerment in helping address labor shortage and digitize the picking process is highly valued by retailers. As a result, order volume maintained strong growth momentum. In the Q1, the number of orders fulfilled by Dada Picking increased by more than 3 times year-over-year. Moving on to Dada Now, the leading local on-demand delivery platform in China. Recently, the CPC Central Committee and the State Council proposed in the opinions on accelerating the construction of a national unified market to promote innovation of technology and business model in the third-party logistics industry, so as to improve logistics efficiency for the entire society. As you know, technology-driven intracity on-demand delivery plays a key role in the third-party logistics industry. It also serve as an important infrastructure to support new consumption formats, improve consumer convenience, and improve overall logistics efficiency. Leveraging our technology advantages and on-demand delivery network coverage, Dada Now serves a wide range of customers, including chain merchants, SME merchants, individual users, express delivery companies, and on-demand delivery agencies. Providing them with diversified and high quality intra-city on-demand delivery services. In terms of business progress, I'll start with our KA or key merchant chains business. Based on the expansion of cooperating merchants and stores, the increase in the average delivery order per store, revenue of our on-demand delivery service to KA merchants maintained rapid growth, increasing by about 50% year-over-year after hypergrowth for multiple quarters in the past. In restaurant KA category, we continued to sign up new restaurant chains such as Dicos, KFC. Revenue generated from key beverage KAs increased by more than 100% year-over-year. In addition, pharmaceutical KAs maintained impressive performance with revenue increasing by more than 100% year-over-year. Moving on to the SME and the C2C business. Orders fulfilled increased by more than 40% year-over-year, while unit economics keeps improving significantly. For last mile service, during the recent pandemic outbreak in Shanghai, we quickly recruited and activated last mile delivery riders, leveraging our flexible crowdsourcing network. These riders played a key supplementary role in restoring JD Logistics' delivery capability, while it faced shortage of in-house delivery personnel. Our efforts also helped serve the bottlenecks of the last 100-meter delivery within communities, which ensured door-to-door delivery even during the pandemic while staying compliant with the containment measures. To wrap up, despite pressures from the broader macro environment and ongoing pandemic, we have continued to make encouraging progress and deliver strong results. We will continue to execute our strategy to drive sustained returns for shareholders. With that, I will now pass the call over to Beck Chen to go over our financials for the quarter. Thank you. Thank you, Philip. Before we go over the numbers, just a few housekeeping items in advance. We believe, first, year-over-year comparisons are the most useful way to judge our performance. Therefore, all percentage changes I'm going to give will be on that basis. All figures are in renminbi, unless otherwise noted. Total net revenue in the Q1 increased to RMB 2 billion, aligning the revenue recognition method of Dada Now's last mile delivery services to a comparable net basis. Pro forma revenue growth would have been 74% year-over-year. Net revenue from Dada Now was RMB 623 million. The pro forma revenue growth rate was 62% year-over-year, mainly driven by the increase in order volume of intra-city delivery service to chain merchants and the last mile delivery services to logistics companies. Net revenues from JDDJ increased by 80% to CNY 1.4 billion, mainly due to the increase in GMV, which was driven by increases in the number of active consumers and average order size. The increase in online marketing services revenue as a result of the increasing promotional activities also contributed to the revenue growth of JDDJ. Moving over to the expenses side, operation and supporting costs were CNY 1.3 billion. The decrease was primarily due to the decrease of rider-related costs incurred by business upgrade of our last mile delivery services, partially offset by an increase in rider costs as a result of increasing order volume for intracity delivery services. Selling and marketing expenses were CNY 1.1 billion. The increase was primarily due to, firstly, the growing absolute dollar amount of incentives to JDDJ consumers. Secondly, an increase in advertising and marketing expenses to attract new consumers to JDDJ platform. Thirdly, the amortization of the business cooperation agreement arising from the share subscription transaction with JD.com in February this year. G&A expenses decreased to RMB 101 million, primarily, due to decreased share-based compensation expenses. R&D expenses rose to RMB 165 million, mainly attributable to the increase in research and development personnel costs as the company continues to strengthen its technology capabilities. Non-GAAP net loss attributable to ordinary shareholders of Dada was RMB 481 million. Non-GAAP net loss margin was 24%. On a comparable basis, net loss margin improved by about 30 percentage points year-over-year. As of March 31, 2022, the company had RMB 4.6 billion in cash equivalents, restricted cash and short-term investments. As with our $70 million share repurchase authorization announced in March. As of April 30, 2022, we had repurchased approximately $17 million of ADSs under this repurchase program. In terms of the outlook for the Q2 of 2022, we expect total revenue to be between RMB 2.25 billion and RMB 2.35 billion, representing a pro forma growth rate of 59%-66%, adjusting 2021 Q2 and the 2022 Q2 Dada Now's last mile revenue to be a comparable net basis. In addition, we expect the pro forma net loss margin based on comparable net basis revenue in the Q2 of 2022 to continue to significantly narrow year-over-year and achieve sequential improvement for the fifth consecutive quarter. This concludes our prepared remarks. Operator we are now ready to begin the Q&A session. Thank you. Thank you. At this time, we would like to begin the Q&A session. If you would like to ask question, please press star one on your telephone and wait for a name to be announced. If you would like to cancel request, please press the pound or hash key. There will be a short silence while questions are being collected. First questions comes from the line of Ronald Keung of Goldman Sachs. Please go ahead. Thank you. Thank you, Philip, Beck, June, and Caroline. Congratulations on the solid results in the Q1. I wanna ask about the recent COVID impact. If you could give us any anecdotes in Shanghai, in Beijing, and overall. Just looking at our Q2 guidance, which underlying implies a 59%-66% growth. Is there any specific growth rates that we're expecting for JDDJ? How have we adjusted our business models or products or availability of inventory in this COVID season? Thank you. Sure. Hi, Ronald. I will give you my answer and see if Beck have anything to add. Yeah, as you have already seen that in Shanghai, Beijing, Shenzhen, among others, are having COVID outbreaks in the last few months. We have been approved by the local governments in almost every city as a key company for daily supplies under the COVID situations. We see our social responsibility and very... I think the huge social responsibility as well as the business opportunities. There are cities under different level of lockdown, and we are seeing different impacts. I will give you examples. In Shanghai, for example, Shanghai is having an extreme lockdown. So by the end of March, the supply chain of the merchants are pretty much shut down. Most of the supermarket stores are offline. Under the requirement from the government, the eligible riders are also in extreme shortage for at least a few weeks. Certainly there are a lot of challenges for our business. With the supply chain improvement and also the COVID situation is getting better, so our business is also recovering quickly. We are seeing that in the next few weeks, our business will return to normal. I think that's in a very extreme case, certainly the most extreme case in the last three years we have ever seen. For the other cities, for example, Beijing. In Beijing, although we are also seeing some COVID outbreaks, but the logistics and supply chain are rather stable and has not impacted too much. In cities like Beijing, our business grow very quickly in the initial phase, and then it get down to a rather normal phase. Some other cities, once we see some random COVID cases, I think the city governments are controlling pretty well, and our business has not been much impacted. That's the business impact. At the same time, in order to provide more protection and also to encourage the riders to work, there is some additional COVID-related subsidies or expenses for the riders. I think those are also temporary. I think in the long term, this kind of COVID situation is helping us for customer education. Now, I think literally in most of the cities, customers are familiar with on-demand delivery and home delivery business and e-commerce business. I think in the long term, it will have positive impact, given this kind of customer education. Yeah. Let's see if Beck have anything to add. In consideration of all those challenges right now, you know, facing in China, we still believe our two platforms, both Dada Now and JDDJ, will experience higher than the market average growth rate and of the benefits. For example, for the guidance we have been giving for the Q2 of 2022, we already consider all those impactors and factors during this quarter. So it's a fair expectation right now. Thank you. Any specific on JDDJ growth expectations or? Yeah. JDDJ in Q2, we believe that it will still grow very quickly compared to the market average right now, as you can see, you know, the data released by the National Bureau yesterday. There are a lot of challenges in China right now, but still we believe JDDJ is experiencing higher than average growth rate. For the Q2, we believe that it will still grow like the same similar speed about the total net revenue growth rate of Dada. Great. Thank you, Philip. Thank you, Beck. Thank you for the questions. Next questions comes from the line of Eddie Leung of Bank of America Merrill Lynch. Please go ahead. Good morning, guys. Just a follow-up question on the longer term outlook after this COVID lockdown. You guys mentioned about potential better education of our consumers. Could you talk a little bit about how you think about the competitive landscape might change after the recent lockdowns and the potential impact on the ticket size that you guys have been seeing? Then a separate quick question on the cooperation with JD. Could you remind us the contribution of the JD channels to your GMV in the Q1? Thank you. Sure, Eddie. Again, I will give you my answer and see if Beck have anything to add. For the long term outlook after COVID, you mentioned the ticket size. We're seeing our basket size keep growing for the last few quarters. The trend has been pretty stable and due to a few reasons. One is the product varieties keep improving and also the customer experience improving. We are seeing that the basket size has continued to grow. In terms of the competition, I think after this COVID outbreaks, a lot of smaller competitors or smaller companies will have serious challenges. The overall competition, I think will be reasonably reduced. In other words, I don't think the subsidy wars or anything like that will happen in the foreseeable future. I think people in the market will be more reasonable and more or even conservative in terms of burning cash for unreasonable competition. At the same time, I do believe that the strong players in the market will take the advantages and grow the business well, partially due to the customer education and also the entire market being more rational. I would like to give you some of the updates regarding our cooperation with JD. After the further investment from JD completed, there are few key initiatives we have been working on with JD. Firstly, from the product and technology side, we have been working very closely to improve the product performance of this ShopNow, especially the search engine improvements and also the Nearby tab improvement. We are happy to see that we're getting more traffic and improving the conversion rates. At the same time, it's the first time that we are working with JD.com for brand marketing and some advertising together, still, especially during the important festivals. For example, like the April 15th, our anniversary, and also in the upcoming June 18th's festival, things like that. We will work closely with JD for brand promotion, therefore, to improve our mindshare among the customers regarding the on-demand retail. At the same time, we are opening up more cities, on Nearby tab in Q1, and we will continue to push this, in the foreseeable future and to cover the entire country as much as possible. Yeah, that's the key initiatives and see if Beck have anything to add. Yeah. In terms of the GMV contribution, for the JD channel in Q1, it contributes a little bit more than 50%. I believe there is some seasonality there. In Q2 and going forward, we believe that the contribution will keep to grow. Eddie? Got it. Thank you, Philip and Beck. Thank you for the questions. Our next question comes from the line of Thomas Chong from Jefferies. Please go ahead. Hi. Good morning. Thanks management for taking my questions. I have a question regarding the unique economics for JDDJ. Can management comment about how we should think about the Q2 sequential trend for the different parts for the revenue and expenses side? On the other hand, can you also get more color about the competitive landscape for Dada Now, in particular, the key accounts, the KA side? Thank you. Okay, Thomas. So let me take the first question, and I believe Philip can take the second question very well. For JDDJ UE, or we call it like JDDJ direct margin, we believe that in Q2, we can achieve the positive direct margin as we have expected in previous quarters. Actually in March, I think for monthly, like the direct margin level of JDDJ, it's already breakeven. In Q2, we are on the track to achieve a positive direct margin. Going forward, we believe that it will keep to be positive. Yeah. For our KA business, we're happy to see that our KA business have been growing very fast in the last couple of years, at the same time improving the delivery qualities and the customer satisfaction and to strengthen our market leadership. As a result, we are getting more and more recognition from the leading customers. This year-over-year, the whole year, we anticipate that our KA business will grow 40% year-over-year for the whole year. At the same time, because of the COVID impact, the cost and expense around the riders might have some incremental cost, partially preventing us from the further improvement of the margin. While we anticipate by the second half of this year the COVID impacts are slowing down, and the KA business will improve from the increased density of the orders as well as all the technology-driven improvement and operation improvements we have been doing. We are confident with both revenue growth and margin improvement. Thank you. Thank you for the questions. Next questions comes from the line of Alicia Yap from Citigroup. Please go ahead. Hi. Thank you. Good morning management. Thanks for taking my questions. Also congrats on the very solid result despite the challenges. I have a couple questions. One is, can management elaborate a little bit the mix of the FMCG versus the non-FMCG for JDDJ in the Q1 and also your expectation for the Q2, and also the AOV difference? Do you expect a material change to the mix due to the COVID lockdowns and some of the consumption behavior shifted? I think, can you remind us the 1Q, Q1 JDDJ direct margins? I think you mentioned Q2 is still on track for profitability. Follow-up questions on your Q2 guidance. I know management mentioned you have factored in the impact from the COVID. Is the Q2 guidance assuming the second half of May will be recovering and not getting worse, and then June will be normal? Thank you. Okay. Yeah, let me take the questions about the numbers. First, about the supermarket categories. Most of the supermarket categories right now is consisting of FMCG products. For supermarket categories, it contributes about 60% of the total GMV in Q1. We believe that the overall FMCG percentage will slightly going down in Q2 because the non-supermarket, non-FMCG products will grow more quickly. For the AOV, first of all, for our overall marketplace AOV is still like keeps as more than 210 RMB for Q1. Specifically, for supermarket categories AOV it is increasing to over 160 RMB. It's growing Q-Q or year-over-year. We believe that all of those impacts around the COVID things will also contribute to the increase of the AOV in the longer term. Also our diversification of newer categories will also contribute to the growth of AOV as well. In terms of the direct margin, Q1 is slightly like minus 0.1% for the whole quarter, but in March, we believe we already achieved breakeven. For the Q2 guidance, Alicia, you mentioned, so basically right now we think we are considering all those factors already, you know, which already happened in the first half of this quarter. Actually we are considering that it will not deteriorate as like what happened in April in Shanghai. I see. Yeah, that's all. Okay. Thank you, Beck. Thank you. Thank you for the questions. Our next question comes from the line of Wei Sheng from UBS. Please go ahead. Hi, management. Thank you for taking my questions. I wanted to follow up on the COVID impact that you mentioned. I wonder, compared to what we experienced in 2020, could you guys comment on how this round of COVID could affect maybe consumer behaviors longer term, and how are we positioned differently this time to be better accommodated to the situation? Another question from me is on the upcoming 618 shopping season. How do we see the participation from merchants this year and any promotion strategy or campaigns that we want to highlight that you guys can share would be appreciated. Thank you. Sure. Yeah. I'll have my answer and see if Beck have anything to add. So the consumer behaviors from the COVID, I think the overall government measures against COVID has been continued to optimize. We are now having more and more frequent COVID tests and also the other measures. One of the things we observed is that customers might go to restaurants less frequently than before, even after COVID. As you may have noticed, in many cities, including Beijing and others, once there is COVID cases, the governments will ask the restaurant to stop having the dine-in service and has to do the takeaway mode. We're also noticing that more and more customers are now cooking at home. I think all those will have positive impact on the supermarket, FMCG, and the fresh foods categories. More customers will be used to use the home delivery service rather than go to restaurants or go to the offline supermarket. That's our observation. In terms of the June 18th, I think, first of all, the macro environment slowdown might have some impact on the willingness to spend for the customers. At the same time, I think customers having, like in Shanghai and other cities, customers have been locked down for quite a while, and they really like to spend some money and to get some pleasure. We are conservative, but positively conservative about the June 18th. We are working very closely with JD.com together to do our best in June 18. Another thing, collaboration with JD is that, during this Shanghai lockdown and other city outbreak, JD, among other e-commerce players, noticed that the warehouse model during the extreme situations might have some challenges, especially during, like, the extreme lockdown. But for JDDJ, because we are decentralized and all the inventory locates in each city and it's a local e-commerce, so it's more resilient and it's easier to respond to those challenges. We are working very closely with JD to develop new strategies and initiatives to react to the situation. I think this June 18, we are quite looking forward to it. Thank you. Very clear. Thank you for the questions. Next questions comes from the line of Andre Chang from J.P. Morgan. Please go ahead. Thank you, management, for taking my question. My question is on the merchant side. With all the macro headwinds and the COVID impact, though we also see some merchants being more cautious about spending, you know, for the year. I wonder if the company also seeing this kind of trend, and if so, any measures to mitigate that. If we take this a little bit at a higher level, are we seeing our monetization models across marketing riders because of all these, like, extra, you know, expense for rider, et cetera, the monetization mix changing? Thanks. Sure. Yeah, I'll have my answer first. Our observation and our interaction with the supermarkets told us that most of the supermarkets are having some challenges, but many of them are actually having a better time for the business comparing to the last couple of years. One of the reason we read from the situation is that the community group buying, the irrational competition and the subsidy wars from the community group buying has been slowing down significantly. This actually helped to improve the life of supermarket. At the same time, based on our interaction with the consumer brands, I think overall they're doing fine. They are not having a like a too much challenges at the moment. I think overall the foundation of the business is quite solid. At the same time, people are looking for more effective channels to do business for the like brands and the merchants are looking for effective channels. And we are the effective channel. That's why we are happy to see that both the brands and the merchants are willing to spend more on our platform, and they are expecting like a greater growth and contribution from our platform. We are quite positive about that. Yes. Also, in terms of the direction of the monetization. We believe that the marketing revenues, marketing fees is still the most important one to help us to increase the overall monetization rate. Just like before we mentioned. During this year, we believe that still the online marketing revenues on a year-over-year basis will grow very quickly, significantly. It doesn't impact our methodology of the growth of JDDJ's revenue. Thank you. Okay. Do we have a follow-up questions? Mr. Chang, if there are no further questions, I'll move on. Management, I'll take the next questions from Robin Leung of Daiwa. Please go ahead. Hi. Thanks management for taking my questions. I just have a follow-up questions on the COVID impact. Which sectors are having the biggest impact on Dada? Because I believe there's the first impact would be the supermarket in the offline because of the lockdown measures, and also there is some impact on the trucking logistics. Some of the riders cannot fulfill the orders because they could not come out from the residential areas. If there is another round of lockdown measures, how will Dada cope with the challenges? My second questions is compared to the past pandemic cycles, are we observing better user retention this time? Because I think we face less competition from community group purchase versus the last two years. In terms of the user acquisition cost, should we expect it to be less as we could realize some cost savings from the JD channels? Thank you. First of all, the COVID lockdown. I think the Shanghai lockdown is very, very extreme. Personally, I don't think we will be seeing that kind of lockdown anytime in the foreseeable future. I think more and more local governments are now having, especially the frequent COVID test, and other measures to reduce the total lockdown risk. We are quite positive about that. Even for Shanghai and some other cities, I think now the government realize that the supply chain, the route for supermarkets are so important. I also personally am quite positive that the supply chain will have less and less impact even during some kind of COVID measures in the future. For the riders, we are having always working closely with the local governments to improve the rider management and the supervisions in order to follow the COVID guidance. I think overall we are comfortable with our operations. The shortage of riders are rather temporary and not as severe as people might imagine in most of the cities. We are comfortable with that. In terms of the active customers, by the end of March, our active customers grew by 47%, up to nearly 68 million active customers. We are happy to see this active user base continue to grow. At the same time, for the- Use that position because we are increasing our entry points on JD.com and strengthening our collaboration with JD.com. I think the user growth, especially, in the JD ecosystem, will continue to be improved in the foreseeable future with the cost reduction or relatively stable. Okay. Can I follow up on the user retention? The user retention and frequency has been keeping improving over the quarters. We are seeing that especially the per user purchase or the dollar amount that user purchase on our platform keep growing. The wallet share that we have of our users keep improving. And we are comfortable and confident to see that wallet share keeping improving in the future as well. Thank you very much. Thank you for the question. In the interest of time, the last questions comes from Wei Fang of Mizuho. Please go ahead. Thank you for taking my question. Can you talk about the advertising yield for the quarter within your total monetization rate? Given the recent lockdowns, are any changes to your prior 2022 unit economics outlook. Secondly, on the supermarket, in light of the more rational competition from the CGP business model, how should we think about the impact on your monetization rate? Thank you. Okay. The advertising revenue in Q1 is like growing by about 180% year-over-year. Also the monetization rate of online marketing is further increased to 3.4% compared to 3.2% in Q4 last year. It keep improving. Like we have talked in the previous calls that we believe for the whole year the monetization rate of online marketing still have the potential room to grow by 20-30 basis point. It will be our major driver to grow the overall monetization rate. We believe that for the other two major items, including the delivery fees and the packing fees we received from consumers and the commissions we received from the merchants, we can maintain, you know, those two commissions or delivery fees at the similar level as last year in consideration all those, like the multi-category product diversification. Like I have said, we are still on track to grow the monetization rate. At the same time, we will keep to on a year-over-year basis, and also on the Q-on-Q basis, we will keep to optimize on the cost side, mainly including the consumer incentives and operating and rider costs. Overall, in Q2, we can achieve a quarterly positive unit economics, quarterly positive direct margin. Going forward, it will keep you grow in the positive way. Thank you for the questions. With that concludes today's question and answer session. I'd like to hand the call back to Miss Caroline Dong for our closing remarks. Thank you, operator. In closing, on behalf of Dada's management team, we'd like to thank you for your participation in today's call. If you require any further information, feel free to reach out to us directly. Thank you for joining us today. This concludes the call.