Good morning, ladies and gentlemen, thank you for standing by for Dada's first quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there'll be a question and answer session. As a reminder, today's conference call is being recorded. I will now turn the meeting over for 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 first quarter 2023 earnings conference call. On the call today from Dada Nexus, we have Mr. Jeff Hu Jianhang, President, and Mr. Beck Chen, CFO. Mr. Hu will talk about our operations and company highlights, then Mr. Chen will discuss the financials and guidance. Please kindly note that during the Q&A session, Jeff will answer questions in Chinese and the consecutive translation will be provided. In case of any discrepancy between the original remarks and the translated version, statements in the original remarks should prevail. Before we begin, I'd like to remind you that this conference call contains forward-looking statements. Please refer to our latest safe harbor statement in the earnings press release on our IR website, which applies to this call. Also, during this call, we will discuss certain non-GAAP financial measures. Please also refer to our earnings press release, which contains a reconciliation of our non-GAAP measures to the comparable GAAP measures. Finally, please note that unless otherwise stated, all figures mentioned during our conference call are in RMB. It is now my pleasure to introduce our president, Mr. Hu. Jeff, please go ahead. Okay, thank you, Caroline. Thank you all for joining us today. During this, the first quarter of 2023, Dada Group continued to deliver strong revenue growth, significantly improve our operating efficiency. Our total net revenues increased by over 27%, and our adjusted net loss margin narrowed by over 16 percentage points year-over-year. I will start today's presentation with an update on our dependent cooperation with JD.com, following which I will share the operational highlights from our two platforms. Jack will take you through the detailed financial results. We continue to deepen our cooperation with JD.com in several areas. During the first quarter, GMV of Shop Now, as our scope, the unified brand for all on-demand retail services within the JD ecosystem, increased by 60% year-over-year. In particular, GMV for Nearby or Fujin tab maintained rapid year-over-year growth. This was driven by continued increase in Nearby's DAU, as well as a higher conversion rate during the page with designs that made the shopping experience more efficient. Regarding such results, we also recently launched the price-based star ratings. The tool highlights the most competitively priced products. We believe this feature will boost the traffic conversion and enhance Shop Now's appeal among JD users as a shopping channel with competitive price and fast delivery. Let's move on to the operational highlights for our two platforms. Starting with JDDJ, the leading on-demand retail platform in China. In the first quarter, JDDJ maintained the rapid GMV growth that significantly outpaced the lifestyle industry. Our high quality growth is factored by our close cooperation with and the technology we movement to our retailers and the brand partners. Let's start with JDDJ 's expanded and strengthened efforts to empower the partners. In the supermarket category, in terms of our cooperation with top supermarket chains, we recently signed a new partners such as Zhengzhou, Dennis and now have established partnerships with our 19 of the top 100 supermarket chains in China. We continue to expand the cooperation with leading convenient store chains. These stores from top brands such as Meiyijia, Lawson and FamilyMart recently launched on our platform. We will be able to meet consumers' needs across more diversified shopping scenarios. Managing supermarket, market's merchandise change and our consumer insights, we continue to launch various campaigns to drive sales. In March, together with our supermarket partners, we launched the Weekend One Cent Shopping campaign. The campaign is designed to boost our user awareness of JDDJ's attractively priced product offerings through targeted promotion of specific SKUs. The events have significantly improved merchant sales and user engagement levels. For example, at the end of March, JDDJ collaborated with 19 supermarket chains to launch the One Cent Fresh Milk campaign in Beijing. During the event, GMV of fresh milk products in Beijing increased by more than 60% year-on-year. More than 30 percentage points higher than the overall GMV growth rate in Beijing. In addition, the seven-day period purchase rate of participating consumers was 7 percentage points higher than that of the citywide user base. We also made further progress in the consumer electronics and home appliance category. In the computer and accessories subcategory, we recently partnered with smart learning device brands such as Xiaotiancai and Readboy. In the first quarter, GMV from computer and accessories merchants increased by nearly 200% year-on-year. In the home appliance subcategory, we signed up leading home appliance brands such as Haier and Midea to onboard and promote their offline stores on JDDJ, offering customers differentiated product selection and the convenient one-stop delivery and installation services. In the first quarter, GMA for home appliance merchants grew by nearly 200% year-on-year. In the apparel category, we have successfully expanded into the infant and children's apparel segment, and recently partnered with leading brands such as Anshi and Balabala. In the first quarter, GMA of the apparel category increased nearly six-fold year-on-year. In the home and furniture category, we achieved breakthroughs in segments including lighting, hardware, accessories, and sofa. For example, we recently established partnerships with OPPLE, Huarun, and Chivas. In the first quarter, GMA for home and furniture merchants increased nearly four-fold year-on-year. Let's move on to JDDJ's efforts to empower brands. We continue to penetrate various FMCG segments, helping brands increase their sales through O2O channels. To name just a few, we recently signed partnerships with confectionery brands such as Chocday, baby brands such as Adoore, and personal care brands such as Adolph. Next, I will touch on our efforts to empower both retailers and the brands through technology innovation and digital transformation. Firstly, on Haibo, our omni-channel O2O operating system for retailers. Our Haibo system just crossed the 10,000 milestone in number of stores deployed. In the first quarter, we successfully expanded Haibo services to commodities retailers with further penetrating categories such as supermarkets, convenience stores, and mom and baby stores. We also continued to upgrade Haibo's features to help merchants improve O2O operating efficiency. For example, we introduced the automatic product launch function to Haibo's operation module to help our partners onboard new products more efficiently. Merchants that tested this new module was able to list the new products more than 80 faster. Moving next to Dada Picking, our digitized in-store picking services for retailers. We continue to strengthen our collaboration with leading supermarkets such as Walmart and Sun Plus to meet their labor needs in flexible and cost-efficient manner. I will now turn to Dada Now, China's leading on-demand delivery platform. For business progress, let's start with our K or chain merchants business. Despite the impact of COVID outbreaks in January, we still managed to optimize our services quality and search for payment late increased by 3 percentage points year-on-year in the first quarter. In the supermarket K category, we continued to work closely with partners such as Walmart and Sam's Club. We also set up new partnerships with supermarket chains such as Aldi. In the restaurant and beverage K category, our re-revenue increased by more than 40% year-on-year, among which revenues from beverage chains more than doubled year-on-year. We continue to provide a dedicated team of support to beverage Ks such as McCafé and Peet's Coffee, and sign up our other beverage brands such as Mixue Bingcheng and Chagee. In our SME and C2C business, thanks to enriched product offerings for SMEs and expanded C2C order sources, the number of orders fulfilled increased by more than 40% year-on-year in the first quarter. Meanwhile, our UE continued to improve significantly, driven by our refined pricing strategy and improved our dispatching efficiency. Moving on to our last mile services. We continued to leverage our flexible crowdsourcing network to provide steady support to JD Logistics by supplementing its own delivery fleet. In the Chinese New Year shopping festival, we saw a significant year-on-year increase in our average daily orders fulfilled for JD Logistics. Lastly, an update on Dada Now's autonomous delivery services. We continued to maintain our leading position in autonomous delivery for supermarkets. As of the end of March 2023, Dada Now's autonomous delivery open platform had fulfilled more than 100,000 on-demand delivery orders for supermarkets. That covers our operational updates for the two platforms. We continue to make steady progress in terms of both top line revenue and growth and bottom line improvement during the first quarter. We have built up significant momentum to start the year based on our enriched product offerings. Depend the penetration in key categories and improve the user experience. We will leverage our strong partnerships with retailers and brands, our flexible rider network and our depending alliance with JD.com to capitalize on new opportunities in the quarters to come. I will now pass the call to Back to go through our financial results for this quarter. Thank you. Back. Thanks, Jeff. Before we go over the numbers, just a few housekeeping items in advance. We believe year-over-year comparisons are the most useful ways to judge our performance. Therefore, all percentage changes I'm going to give will be on year-over-year basis. All figures are in renminbi unless otherwise noted. The total net revenues in the first quarter increased by 27% to RMB 2.6 billion. Net revenue from Dada Now increased by 20% to RMB 749 million, mainly driven by the increases in order volume of intracity delivery service to chain merchants. Net revenues from JDDJ increased by 30% to RMB 1.8 billion, mainly due to the increase in GMV. 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 expensive side, operations and support costs were RMB 1.4 billion. Increase was primarily due to an increase in rider cost as a result of increasing all the volume for intracity delivery services provided to various chain merchants. Selling and the marketing expenses were RMB 1.3 billion. The increase was primarily due to the growing absolute dollar amount of incentives to JDDJ consumers and the amortization of the Business Cooperation Agreement arising from share subscription transaction with JD.com in February 2022. G&A expenses decreased to RMB 79 million as a result of our expense control measures and a decreased share-based compensation expenses. R&D expenses decreased to RMB 129 million, mainly due to lowered R&D personnel costs as we enhanced operation efficiency. Our non-GAAP net loss attributable to ordinary shareholders of Dada was RMB 182 million. Our non-GAAP net loss margin was 7.1%, improving by 17 percentage points year-over-year. As of March 31, 2023, the company had RMB 3.7 billion in cash equivalents, restricted cash and short-term investments. In terms of the outlook for the second quarter of 2023, we expect total revenue to be between RMB 2.8 billion and RMB 3 billion, representing a year-over-year growth rate of 23%-32%. In addition, we expect non-GAAP net margin in the second quarter of 2023 to continue to significantly improve and reach breakeven. This concludes our prepared remarks. Operator, we are now ready to begin the Q&A session. Thank you. Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you'd like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Ronald Keung from Goldman Sachs. Please go ahead. Thank you. Thank you, Jeff, Beck and Caroline. Mainly two questions. One is on our JDDJ GMV growth. How do we think about that into the next few quarters? We are broadly in last year's kind of COVID situation, reopening a weaker macro, but we also have a kind of slightly lower base versus the initial very hyper growth pace until the first quarter 2022. How should we think about the GMV growth rate in the next few quarters? The second is, Beck, you just talked about reaching confidence, reaching breakeven. What was the direct margin in the first quarter? Longer term, how should we think about either direct margin or the GMV profit potential? GMV profit margin potential? Should I translate or if it's English, it's fine? I think, I think it's fine, Ronald. Thank you for the question. Let me just answer the two questions. First, in regard to the GMV growth, you're right. Basically, you know, everything right now in China is back to normal. Basically, everything is in order by now. But still we, you know, we are witnessing that the macro consumption demand is still taking time to recover. We still keep the same expectation for the whole year. The GMV growth is like the second half of this year, growth rate could be faster than the first half of this year because it still needs to take time to grow for the consumers demand. Also for the second quarter. For the second question, our growth, our direct margin of JDDJ businesses is like in Q1 is growing by 140 bps on a year-over-year basis. For this year, we think we can, like, grow the direct margin level for the whole year base, like, 180 bps on a year-over-year basis. Which makes us like to make it to like 2.5%- 2.6% on annual base, on an annual basis. Got it. Thank you. Thank you. Your next question comes from Thomas Chong from Jefferies. Please go ahead. Good morning. Thank you management for taking my Thank you management for taking my question. I have two questions. The first one is about our cooperation with Douyin on take-out. Management, could you share with us the latest progress and our expectation for this year? The second question is about JDDJ. Management, could you share with us the GMV mix by product categories? And also, for the whole year, how should we expect this JDDJ AOV, 还 有 这 个, GMV, 增 长 的 速 度 呢, 谢 谢. Thanks management for taking my question. My first question is about the cooperation with 抖 音. Can management share the latest updates as well as our expectation for this year? My second question is also relating to the JDDJ side. Can management comments about the GMV mixed by product categories, and the AOV outlook? How should we think about the GMV growth for the full year, if any come? Thank you. 好 的 。 你 ， 你 回 答 ， 我 回 答 。 Thomas, let me 我 来 回 答 第 二 个 问 题 先 ， 然 后 第 一 个 问 题 Jeff 来 回 答. Okay, Thomas, I will answer the second question, and I will leave the first question to Jeff. Regarding the numbers, basically for our GM mix, because of the seasonality, our like supermarket category is growing on a Q-on-Q level compared to Q4. Also our 3C category is decreasing on a Q-on-Q level. We believe for the whole year base and also for the next few quarters, our 3C appliance and like all those 3C, ex 3C categories, the category growth will still be growing faster. The mix will be more contributed by 3C categories on a year-over-year basis. Q1 is just a seasonality fact. Also for our overall AOV, the marketplace average order value for Q1 is further growing to 240 RMB per order. Our supermarket categories AOV is also growing on a year-over-year basis. For the whole year base, we still maintain the same expectation as our last earnings call. We expect the AOV is to continue grow during this year. Jeff. Okay。 呃 ， 抖 音 的 合 作 的 情 况 ， 呃 ， 截 止 到 三 月 份 呢 ， 抖 音 外 卖 的 服 务 ， 呃 ， 依 然 是 在 三 个 试 点 城 市 进 行 前 期 的 测 试 。 那 我 们 看 到 的 是 我 们 的 份 额 在 稳 中 且 有 提 升 。 那 当 然 涉 及 到 抖 音 外 卖 方 面 的 这 个 策 略 和 计 划 ， 这 个 由 于 保 密 性 ， 我 们 不 方 便 单 方 面 来 披 露 。 那 但 是 我 基 于 达 达 的 这 个 快 送 的 网 络 覆 盖 和 服 务 水 平 ， 包 括 我 们 的 成 本 上 的 优 势 ， 我 们 是 非 常 有 信 心 长 期 在 抖 音 平 台 实 现 非 常 可 观 的 这 个 配 送 的 市 场 份 额 。 Okay. Please. Regarding our cooperation with Douyin, as of the end of Q1, its food delivery business was still under trial in merely three cities, and the Dada Now's market share has steadily increased. With regard to Douyin's strategy and the expansion plan for the food delivery business, we are not in the right position to unilaterally communicate with the market due to confidentiality. However, we are confident to say that Dada Now will be able to obtain a considerable market share among Douyin's food delivery orders, given our strength and network coverage, service quality, and cost effectiveness. Thank you. Thank you. Thanks, Thomas. Thank you. Your next question comes from Alicia Yap from Citigroup. Please go ahead. Thank you。 嗯 ， 管 理 层 早 上 好 ， 呃 ， 我 有 两 个 问 题 。 嗯 ， 第 一 个 问 题 是 关 于 我 们 ， 呃 ， 二 季 度 的 这 个 指 引 。 呃 ， 如 果 我 们 用 这 个 下 限 ， 呃 ， 低 端 的 话 呢 ， 其 实 是 ， 呃 ， 同 比 可 能 增 长 二 十 三 ， 然 后 ， 呃 ， 高 端 这 边 是 三 十 二 。 呃 ， 就 想 问 一 下 ， 因 为 ， 嗯 ， 如 果 假 设 我 们 是 达 到 我 们 的 低 端 的 话 呢 ， 那 我 们 的 增 长 其 实 是 比 第 一 季 度 的 这 个 ， 呃 ， 增 长 率 是 ， 呃 ， 减 慢 的 。 所 以 我 记 得 管 理 层 在 今 年 年 初 的 时 候 ， 其 实 是 预 计 到 就 是 ， 呃 ， 就 每 一 个 季 度 ， 从 第 一 个 ， 第 一 个 季 度 开 始 ， 那 个 ， 呃 ， 这 个 收 入 的 增 速 是 每 个 季 度 会 加 速 ， 啊 。 所 以 ， 呃 ， 想 就 是 请 教 一 下 管 理 层 ， 过 去 这 两 个 月 ， 呃 ， 是 有 什 么 原 因 ， 呃 ， 潜 在 的 这 个 原 因 导 致 ， 呃 ， 我 们 这 个 指 引 有 这 个 下 限 ， 啊 。 然 后 第 二 个 问 题 是 ， 呃 ， 就 是 那 个 ， 呃 ， 市 场 预 - 预 -- 呃 ， 消 费 是 比 我 们 这 个 预 期 是 高 ， 啊 ， 就 是 ， 呃 ， 不 知 道 说 ， 呃 ， 这 个 原 因 就 是 我 们 ， 呃 ，JDDJ 这 边 的 是 一 个 用 户 补 贴 呢 ， 还 是 说 竞 争 加 剧 哈 ？ 我 这 边 很 快 翻 译 一 下 。Uh, I have two questions. The first question is related to the second quarter revenue guidance. The low end of the guidance at 23% actually suggests 2Q top line growth will be decelerating from the first quarter level. I remember management comment earlier that you expect revenue growth to be accelerating each quarter from the first quarter onwards. Is there any reasons that you prompted you to provide the low end of the guidance range? Second question is on the sales and marketing spend. It seems to be slightly higher than what we expected. Is there any reasons on that? Is it related to, I mean, the subsidy that you have for JDDJ user or the competition is intensified? Thank you. Okay. Let me answer the question, Alicia. Thank you for the question. First, yes, you're right. Basically as we go into March and April, the first reason is because we are monitoring the overall consumption, just like I mentioned in the previous question, in the previous answer. Basically, we are monitoring the overall market growth-- marketplace growth, not only just us, but just the offline, the omni-channel and also the pure online marketplace. I believe you also got more information from other e-commerce platform is that basically the market consumer demand is still taking time to be back. That's why we could be more, we just want to be more prudent on that. Compared to other companies, we just released earnings in early May. You know, there is a big mid-year promotion event in June. It still takes time for us. The project is still not kicking off for the June mid-year campaign. We will watch for the mid-year campaign whether or not it could be still in consistent with our expectations. For the second question, for Q1, we still spend some money, but basically we have overall target for the non-GAAP net loss optimization on a year-over-year basis. We may spend some money in sales and marketing expenses during Q1, but still we have well-controlled other expenses including all those backend expenses. We reach the targets just like we mentioned. For the second quarter this year, we will still keep our like rhythm and continue to decrease our rider cost and subsidies given on the marketplace and to reach our goal, which is breakeven during the second quarter. We are confident that we can realize the breakeven target for during the second quarter. Thank you, Beck. Thank you. Your next question comes from Wei Xiong from UBS. Please go ahead. Thank you management for taking my questions. I have two questions. The first is, given that we've seen good recovery in the offline traffic, just wondering, would that have any impact on the consumer demand for the O2O retail or to the supermarket category products? That wouldn't be a major consideration when we judge the JDDJ growth rates for the next few quarters? Second is, when we talk about the improvement in the direct margin, just wondering what will be the contribution from the subsidy ratio as well as the rider cost? Also considering the continued improvement in the subsidy ratio, how should we think about the sales marketing expense ratio for the next few quarters, especially as we are turning profitable in the near term? Thank you. Okay. Thanks for the question, Xiong Wei. I will answer the second question and I believe Dave will answer the first question. For the second question, for the direct margin actually for the for Q1, we have our monetizing rate growing by 10, 20 bips on year-over-year basis. Like we for the consumer incentives, we save like 80 bips, and for the operation, the rider cost, we save 40 bips on year-over-year basis. For the whole year, we believe, first of all, we are expecting some growth for the monetizing rate on a year-over-year basis. In the same time, we will save, still we will save like 90- 100 basis points for the consumer incentives on year-over-year basis. Also, we may have like 30, sorry, 60 basis points saving for the operation and the supporting costs, which includes, mainly includes the rider costs. In the same time for sales and marketing expenses, we expect the sales and marketing expenses, the dollar amount of this expense could be growing like very single digits on year-over-year basis, on non-GAAP basis. So the expenses as percentage of our revenues will be decreasing to lower than 40% of revenue, as a percentage of revenue. The comparison number for 2022 is 47% as a percentage of revenue. This is our current expectation for sales and marketing expenses. We don't think this is a major issue for us to have this expense item to be well controlled. 好 ， 我 的 那 个 ， 谢 谢 你 的 问 题 啊 。 我 来 回 答 一 下 第 一 个 ， 第 一 个 问 题 吧 。 uh, 关 于 宏 观 方 面 ， 这 个 我 们 观 察 到 的 情 况 。 先 说 一 下 这 个 宏 观 方 面 我 们 观 察 到 的 情 况 。 呃 ， 从 整 个 这 个 宏 观 经 济 的 这 个 ， 呃 ， 来 看 呢 ， 中 国 的 宏 观 经 济 和 消 费 整 体 还 是 在 恢 复 的 过 程 当 中 ， 包 括 我 们 看 到 的 统 计 局 的 数 据 啊 ， 三 月 份 整 个 社 零 相 较 于 二 月 的 这 个 ， 呈 现 这 个 加 快 的 这 个 恢 复 的 这 个 态 势 。 然 后 ， 那 当 然 其 中 呢 ， 参 与 一 个 理 由 ， 这 些 服 务 性 的 消 费 呢 ， 呃 ， 在 疫 情 期 间 积 压 后 ， 这 个 短 期 集 中 释 放 ， 然 后 恢 复 速 度 是 要 高 于 商 品 的 销 售 的 。Uh, Grace help me translate. Let me share with you our observations on the macro front. The macro economy and overall consumption are in the gradual process of recovering. According to data from the National Bureau of Statistics, growth of total retail sales in March accelerated notably from the first two months of the year. Among which, consumption for services, including catering, entertainment and travel, grew faster than the consumption for physical merchandise. This was mainly driven by the release of pent-up demand during the pandemic. 那 从 商 品 消 费 这 个 恢 复 的 过 程 这 个 来 看 呢 ， 还 是 ， 啊 ， 有 不 太 均 衡 的 情 况 ， 像 服 饰 、 美 妆 这 些 可 选 品 类 的 恢 复 速 度 呢 ， 是 要 快 于 食 品 的 。 那 刚 刚 过 去 的 五 一 的 数 据 呢 ， 其 实 我 们 也 看 到 基 本 上 印 证 了 这 个 ， 这 个 趋 势 。 所 以 我 们 认 为 消 费 的 信 心 和 消 费 力 的 这 个 全 面 提 升 和 恢 复 还 是 需 要 一 些 时 间 的 。 Among the consumption of physical merchandise, there is some imbalance or unevenness in terms of categories, with discretionary items, including apparel and cosmetics, outpacing non-discretionary categories such as food and beverage. The consumption data from the May Day holiday last week also indicated a similar trend. It might take some time before we see an all around recovery in the total consumption power. 关 于 O2O， 特 别 是 这 个 到 家 的 这 一 块 来 看 呢 ， 我 们 认 为 消 费 者 向 这 个 更 快 时 效 的 消 费 模 式 的 迁 移 ， 这 个 是 确 定 的 。 我 们 相 信 随 着 对 于 需 求 的 这 个 持 续 的 迭 代 和 我 们 的 这 个 本 地 供 给 的 充 分 上 线 ， O2O 的 零 售 渗 透 率 还 是 会 持 续 提 升 ， 直 到 提 升 到 这 个 三 位 数 的 水 平 。 Looking at O2O demand in specific. Longer term, we believe consumer migration towards shopping channels with faster fulfillment is a secular and certain trend. Therefore, we firmly believe that O2O penetration among retail sales can reach a double-digit percentage in the future, supported by the growing adoption on the consumer side and the further digitalization of local merchants on the supply side. 刚 才 您 提 到 的 这 个 超 市 线 下 人 流 的 恢 复, 确 实 不 可 避 免 地 对 于 整 个, 超 市 的 O2O 业 务 会 造 成 一 些 影 响. You just mentioned the recovery of offline foot traffic to supermarkets. This inevitably has some impact to the O2O sales of the supermarket category. 那 当 然 对 于 我 们 来 说 ， 因 为 我 们 在 品 类 上 ， 呃 ， 相 较 于 其 他 的 这 个 生 鲜 电 商 呢 ， 会 更 加 丰 富 ， 那 因 此 呢 ， 对 我 们 的 影 -- 整 体 的 影 响 会 相 对 比 较 小 ， 更 小 一 些 。 For us, compared with fresh grocery e-commerce marketplaces, because we have richer product selection and broader Merchandise categories, the impact on us is more muted. Okay. Thank you for your question. Yes. I just want to mention that Xiong Wei. It's a dynamic transition and it's dynamic situation instead of a static or muted situation. Simultaneously, just like I mentioned before, we are doing some work to continue to decrease the subsidies on a year-over-year basis, which is like, we expect to save 90, we expect to save 90-100 bps for consumer incentives on a year-over-year basis. Which means that most of those subsidies will be saved through the consumer, like, the supermarket category, 'cause we usually just lost money in this category, which means that we are still very proactively to execute on track to reach break even for JDDJ and also for the whole company level. Which is just not a very, apple to apple, basis, comparison. Understood. Thank you very much, management. Thank you. Your next question comes from Julie Lee from CICC. Please go ahead. Hey, how do you say it when you turn the table windy? Now what you've been doing a quick one to go on you that I quite soon. They easy to go show. He's to go show. He's woman kinda that I quite soon since Sue so far when the you know gone tied to JIO Tido K again SME JB in the Santiago to Las Mayo down down low D pay J quite woman easy to do since Sue she's a man. Did you that I quite soon. Jabun for king in the June John again. You need to we want say that guy she could tell me on the sound far know Wei Fang. In to we want say that guy she could tell me on the sound far know Wei Fang. In the first quarter of 2023, we found that the revenue growth of Dada Now has slowed down. Excluding KA and SME business mentioned before, what is the growth rate of last mile delivery service and what is your expected growth rate of each business line in the whole year? For last mile benefits in Q1 is still growing very rigorously. Very quick because still we for the Chinese New Year campaign and also like during January and February the last mile orders is abundant. We will, you know, 'cause we are mainly provide crowdsourcing resources. When especially during January, you know, riders are usually getting affected by COVID for the JDL riders. We will get sufficient like orders from the network. In Q2, because last year we have relatively a high base in Q2, last year, a lot of places like Xinjiang, like those Northeast region and also like East of China region, especially Shanghai, those eight regions are in lockdown. Usually last year is a high base for our last mile benefits. For this year, in Q2, we expect like flat growth on a year-over-year basis. For the overall like the Dada Now business growth, we still expect that the growth rate will be higher than last year, with not any like large contribution from Douyin. It could be another like potential other resources. Understood. Thank you very much. I'll add some color on the cost and margin front. Since February this year, the overall labor supply and flexible employment segment has been favorable and our rider supply has been sufficient. In Q1, the average daily active riders grew by about 40% year-over-year. The fast order volume growth coupled with sufficient rider supply drove our unit delivery costs to decrease on a like-for-like basis. We expect the delivery cost to continue to go down, year-over-year, which will serve as an important contributing factor, to the margin, improvement of the whole group. Thank you. Thank you. Once again, if you'd like to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Wei Fang from Mizuho. Please go ahead. Oh, hey. Jeff back, Caroline. Our recent check shows that in JD, the RMB 10 billion campaign entry point, we don't see any JDDJ inventory, right? Can management comment on that, right? Whether JD's traffic allocation to that RMB 10 billion specific campaign is as expensive to JDDJ, right? Are we working on the back end and to eventually join the program? Thank you. Okay. Thank you for your question. In the recent two months, we have been cooperating with JD's R&D and operational teams to upgrade the R&D 10 billion subsidy program, including rolling out location-based price comparisons of Shop Now products. As to pave the way for Shop Now products to launch in the 10 billion R&D subsidy channel in the future. Leveraging our retailer partners, strength in the supply chain, Shop Now is expected to participate in the 10 billion subsidy program soon to gain additional traffic exposure on the JD app. In terms of categories, we will focus on the consumer electronics and the large ticket size FMCG products. Since the main sources of traffic for the ShopNow is from the search results and the Nearby tab, the impact of the R&D CNY 10 billion subsidy campaign last is limited. Thank you very much. Thank you. Thank you. There are no further questions at this time. I'll now hand back to Caroline Dong for any 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, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.