An annual revenue of less than 7 billion yuan, in the Jingdong annual revenue trillion yuan of this elephant-level company, can be said to be unremarkable, but it is an important chess piece under the Jingdong logistics system, which is Dada Group (DADA.NASDAQ).
In U.S. stock trading on Thursday and Friday, Dada Group, like most Chinese companies, was killed by consecutive declines, falling 6.1% and 12.9% respectively, with the latest share price being $7.05.
It's a very awkward price point. Because when Dada Group IPO in June 2020, the issue price was $16, and now it is about $7, which also means that it is more than waist compared with the issue price.
At the end of 2020, Dada Group's stock price was more than $60 at the end of 2020, reaching $61.27, an increase of nearly 3 times compared with the issue price, and now compared with the high, the stock price has retreated sharply by nearly 90%.
The stock price of about 7 US dollars corresponds to the latest market value of Dada Group of 1.6 billion US dollars, equivalent to about 10 billion yuan, which is also very embarrassing.
Because according to the company's latest financial report, the company achieved revenue of about 6.87 billion yuan in 2021, an increase of less than 20%; at the same time, the net loss of 2.47 billion yuan, compared with the loss of 1.71 billion yuan in the previous year, was significantly enlarged.
If the time is extended a little longer, in the past five years (2017 to 2021), Dada Group has accumulated losses of nearly 9.2 billion yuan, and the scale of losses is almost equal to the company's market value.
You can also look at the market value of Dada Group from another perspective.
Since 2014, Dada Group has raised financing, and the largest financing in history is US$100 million in June 2015, US$300 million in December 2015, US$200 million in April 2016, US$50 million in October 2016 and US$500 million in August 2018.
Dada raised $320 million at the time of its IPO, raised an additional $450 million in about half a year after its listing in November 2020, and most recently in August 2021, jd.com increased its holdings by $800 million.
From the enterprise check
Excluding other microfinance, just the above financing statistics, it is more than 2.6 billion US dollars, according to the latest exchange rate of about 16.8 billion yuan, also more than the current market value of about 10 billion.
Jingdong Group was previously the major shareholder of Dada Group, and under the continuous increase in holdings, it has held more than 50% of the shares, and since the first quarter of this year, Dada Group will be tied with JD Finance. Of course, Jingdong is rich and powerful, and such a loss of Dada will not make Jingdong hurt its bones.
The balance sheet shows that as of the end of 2021, Dada cash is 510 million, other short-term investments are about 1.2 billion, accumulating about 1.7 billion, according to the level of loss in 2021, which is enough to support a year. Of course, now that there is a big tree of Jingdong, survival should not be worried.
But for a listed company, it is always necessary to find a way to reduce losses in order to return shareholders, and the stock in the hands of employees must also be cashed, if the stock price has been lower than the exercise price, the stock will have no meaning to employees, and there can be no incentive.