Second Quarter 2021 Operational and Financial Highlights
- Total net revenues reached
RMB1,894.5 million (US$293.4 million ) for the second quarter of 2021, representing a 40.7% increase fromRMB1,346.0 million for the second quarter of 2020. - Total GMV reached
RMB2,313.7 million (US$358.3 million ) for the second quarter of 2021, representing a 35.4% increase fromRMB1,708.4 million for the second quarter of 2020. - Total number of orders fulfilled reached 23.8 million for the second quarter of 2021, representing a 32.2% increase from 18.0 million for the second quarter of 2020.
- Average price per order was
RMB96.1 (US$14.9 ) for the second quarter of 2021, representing a 2.6% increase fromRMB93.7 for the second quarter of 2020.
Mr.
“During the quarter, we continued our efforts to enhance our customers’ shopping experience. As we strive to strengthen our supply chain capabilities, we remain focused on enriching our product choices while maintaining the highest standards for our fresh produce offerings,” continued
“Our unique business matrix consisting of on-demand DMW retail, intelligent fresh markets and retail cloud service, along with our core capabilities built on supply chain enhancement, technology-driven forces and value chain empowerment, present an excellent value proposition in the neighborhood retail market. We believe this winning combination will drive even stronger, higher quality and more sustainable growth for
Ms.
Business Highlights and
On-demand DMW (Distributed Mini-warehouse) Business
- As of
June 30, 2021 , the Company had operated 625 DMWs in 16 cities inChina and the total covering areas of DMW had reached 208,283 square meters, representing an 11.0% year-over-year increase compared with the second quarter of 2020. The average delivery time per order was further shortened to 37 minutes in the second quarter of 2021, from 39 minutes in the first quarter of 2021. - The Company further enriched SKUs offered to customers, such as live seafood and flowers, on the back of Missfresh’s strong sourcing and logistics capabilities.
Intelligent Fresh Market Business
- As of
June 30, 2021 ,Missfresh had entered into contracts to operate 58 intelligent fresh markets in 15 cities inChina and had started operation of 34 intelligent fresh markets in 11 cities inChina .
Retail Cloud Service Business
Missfresh and Tencent recently held a strategic cooperation press conference on Retail Cloud business collaboration.
Second Quarter 2021 Unaudited Financial Results
Total net revenues reached
Sales of products through online platforms increased by 41.2% to
Other revenues reached
Cost of revenues increased by 65.5% to
Gross profit was
Gross margin was 7.5% for the second quarter of 2021, compared to gross margin of 21.3% for the second quarter of 2020. The decrease was primarily attributable to the increase in discounts, coupons and incentives offered to customers.
Operating expenses were
Fulfillment expenses were
Sales and marketing expenses were
General and administrative expenses were
Technology and content expenses were
Loss from operations was
Net loss was
Non-GAAP adjusted net loss1 was
Basic and diluted net loss per American depositary shares (“ADS”) were both
Non-GAAP basic and diluted net loss per ADS were both
Balance Sheets and Cash Flow
As of
In the second quarter of 2021, net cash used in operating activities was
Appointment of Co-CFOs
The Company’s board of directors (the “Board”) has recently approved the appointment of Mr.
Ms.
Business Outlook
For the third quarter of 2021, the Company currently expects net revenues to be in the range of
The above outlook is based on the current market conditions and reflects the Company’s preliminary estimates of market and operating conditions, and customer demand, which are all subject to change.
Conference Call
The Company's management will host an earnings conference call at
Event Title: | Missfresh Limited Second Quarter 2021 Earnings Conference Call |
Conference ID: | 8895626 |
Registration Link | http://apac.directeventreg.com/registration/event/8895626 |
Please access the link provided above complete the Direct Event online registration by at least 15 minutes prior to the scheduled call start time. Upon registration, each participant will receive a set of participant dial-in numbers, Direct Event passcode, a unique Registrant ID, and further detailed instructions, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.missfresh.cn.
A replay of the conference call will be accessible approximately two hours after the conclusion of the call until
+1-855-452-5696 | |
International: | +61-2-8199-0299 |
800-963-117 | |
Mainland | 400-632-2162 |
Replay Access Code: | 8895626 |
About
Leveraging its core capabilities,
For more information, please visit: http://ir.missfresh.cn.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP net loss per share and non-GAAP net loss per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in
The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP loss from operations, non-GAAP net loss, and non-GAAP net loss attributable to ordinary shareholders reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. The Company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the Company’s current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.
For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of GAAP and non-GAAP Results” set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into
Safe Harbor Statement
This announcement contains statements that may constitute “forward-looking” statements which are made pursuant to the “safe harbor” provisions of the
For investor and media inquiries, please contact:
In
Investor Relations
Tel: +86 (10) 5954-4422
Email: ir@missfresh.cn
Tel: +86 (10) 6508-0677
E-mail: missfresh@tpg-ir.com
In
Tel: +1-212-481-2050
E-mail: missfresh@tpg-ir.com
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(All amounts in thousands, except for share, per share data or otherwise noted) | |||||||||
As of | |||||||||
2020 | 2021 | ||||||||
RMB | RMB | US$ | |||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | 866,113 | 3,095,836 | 479,484 | ||||||
Restricted cash | 56,269 | 233,492 | 36,163 | ||||||
Short-term investments | 119,126 | 98,000 | 15,178 | ||||||
Accounts receivable, net | 41,403 | 42,410 | 6,568 | ||||||
Inventories, net | 173,688 | 190,639 | 29,526 | ||||||
Prepayments and other current assets | 192,824 | 241,920 | 37,469 | ||||||
Total current assets | 1,449,423 | 3,902,297 | 604,388 | ||||||
Non-current assets | |||||||||
Long-term investments | 48,472 | 62,776 | 9,723 | ||||||
Operating lease right-of-use assets, net | 469,644 | 688,416 | 106,622 | ||||||
Property and equipment, net | 143,864 | 194,997 | 30,201 | ||||||
Intangible assets, net | 7,208 | 6,529 | 1,011 | ||||||
Other non-current assets | 44,151 | 45,430 | 7,036 | ||||||
Total non-current assets | 713,339 | 998,148 | 154,593 | ||||||
Total assets | 2,162,762 | 4,900,445 | 758,981 | ||||||
LIABILITIES | |||||||||
Current liabilities | |||||||||
Short-term borrowings and convertible note | 1,078,878 | 991,602 | 153,580 | ||||||
Accounts payable | 1,088,431 | 1,353,672 | 209,657 | ||||||
Deferred revenue | 119,214 | 120,558 | 18,672 | ||||||
Accrued expenses and other current liabilities | 347,468 | 363,295 | 56,267 | ||||||
Operating lease liabilities, current | 252,740 | 322,444 | 49,940 | ||||||
Options and embedded conversion feature | 11,117 | - | - | ||||||
Total current liabilities | 2,897,848 | 3,151,571 | 488,116 | ||||||
Non-current liabilities | |||||||||
Operating lease liabilities, non-current | 171,433 | 305,273 | 47,281 | ||||||
Total non-current liabilities | 171,433 | 305,273 | 47,281 | ||||||
Total liabilities | 3,069,281 | 3,456,844 | 535,397 | ||||||
Mezzanine equity | 8,529,146 | - | - | ||||||
SHAREHOLDERS’ DEFICIT | |||||||||
Class A Ordinary shares (US | |||||||||
75,555,520 and 200,000,000 shares authorized as of 75,555,520 and 86,383,174 shares issued and outstanding as of 2021) | 52 | 59 | 9 | ||||||
Class | |||||||||
476,660,736 and 4,700,000,000 shares authorized as of 9,527,219 and 619,971,303 shares issued and outstanding as of 2021) | 6 | 385 | 60 | ||||||
Additional paid-in capital | - | 13,218,281 | 2,047,251 | ||||||
Accumulated deficit | (9,387,528 | ) | (11,727,146 | ) | (1,816,304 | ) | |||
Accumulated other comprehensive loss | (48,195 | ) | (52,934 | ) | (8,198 | ) | |||
Total Missfresh Limited Shareholders’ (deficit)/equity | (9,435,665 | ) | 1,438,645 | 222,818 | |||||
Non-controlling interest | - | 4,956 | 766 | ||||||
Total Shareholders’ (deficit)/equity | (9,435,665 | ) | 1,443,601 | 223,584 | |||||
Total Liabilities, Mezzanine equity and | |||||||||
Shareholders' (deficit)/equity | 2,162,762 | 4,900,445 | 758,981 | ||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(All amounts in thousands, except for share, per share data or otherwise noted) | ||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||||
RMB | RMB | US | RMB | RMB | US$ | |||||||||||||
Net revenues | ||||||||||||||||||
Sales of products through online platforms | 1,313,386 | 1,854,120 | 287,167 | 2,981,681 | 3,346,900 | 518,369 | ||||||||||||
Other revenues | 32,662 | 40,360 | 6,251 | 54,182 | 77,807 | 12,051 | ||||||||||||
Total net revenues | 1,346,048 | 1,894,480 | 293,418 | 3,035,863 | 3,424,707 | 530,420 | ||||||||||||
Cost of revenues | (1,059,125 | ) | (1,752,626 | ) | (271,447 | ) | (2,238,132 | ) | (3,093,875 | ) | (479,180 | ) | ||||||
Fulfillment expenses(1) | (342,202 | ) | (540,990 | ) | (83,789 | ) | (757,377 | ) | (981,214 | ) | (151,971 | ) | ||||||
Sales and marketing expenses(1) | (139,150 | ) | (304,700 | ) | (47,192 | ) | (237,806 | ) | (472,315 | ) | (73,152 | ) | ||||||
General and administrative expenses(1) | (58,736 | ) | (396,012 | ) | (61,334 | ) | (140,569 | ) | (482,865 | ) | (74,786 | ) | ||||||
Technology and content(1) | (83,586 | ) | (393,829 | ) | (60,996 | ) | (185,747 | ) | (488,623 | ) | (75,678 | ) | ||||||
Total cost and operating expenses | (1,682,799 | ) | (3,388,157 | ) | (524,758 | ) | (3,559,631 | ) | (5,518,892 | ) | (854,767 | ) | ||||||
Loss from operations | (336,751 | ) | (1,493,677 | ) | (231,340 | ) | (523,768 | ) | (2,094,185 | ) | (324,347 | ) | ||||||
Other income/(expense), net | 121 | 6,193 | 959 | (5,474 | ) | 3,421 | 530 | |||||||||||
Change in fair value of options and | ||||||||||||||||||
embedded conversion feature | - | 69,094 | 10,701 | - | 79,386 | 12,295 | ||||||||||||
Interest expense, net | (2,993 | ) | (14,649 | ) | (2,269 | ) | (4,851 | ) | (31,807 | ) | (4,926 | ) | ||||||
Share of results of equity investees | (194 | ) | (195 | ) | (30 | ) | (389 | ) | (396 | ) | (61 | ) | ||||||
Loss before income tax expenses | (339,817 | ) | (1,433,234 | ) | (221,979 | ) | (534,482 | ) | (2,043,581 | ) | (316,509 | ) | ||||||
Income tax expenses | - | (15 | ) | (2 | ) | - | (17 | ) | (3 | ) | ||||||||
Net loss | (339,817 | ) | (1,433,249 | ) | (221,981 | ) | (534,482 | ) | (2,043,598 | ) | (316,512 | ) | ||||||
Net loss attributable to non-controlling | ||||||||||||||||||
interests shareholders | - | (390 | ) | (60 | ) | - | (457 | ) | (71 | ) | ||||||||
Net loss attributable to | (339,817 | ) | (1,433,639 | ) | (222,041 | ) | (534,482 | ) | (2,044,055 | ) | (316,583 | ) | ||||||
Accretion of convertible redeemable | ||||||||||||||||||
preferred shares to redemption value | (126,094 | ) | (162,467 | ) | (25,163 | ) | (247,402 | ) | (313,680 | ) | (48,583 | ) | ||||||
Accretion of convertible redeemable | ||||||||||||||||||
non-controlling preferred shares to redemption value | (1,742 | ) | (1,724 | ) | (267 | ) | (1,742 | ) | (4,296 | ) | (665 | ) | ||||||
Net loss attributable to ordinary | ||||||||||||||||||
shareholders of | (467,653 | ) | (1,597,830 | ) | (247,471 | ) | (783,626 | ) | (2,362,031 | ) | (365,831 | ) | ||||||
Shares used in calculating loss per share: | ||||||||||||||||||
Weighted average number of ordinary shares: | ||||||||||||||||||
Basic and diluted | 96,894,953 | 141,586,134 | 141,586,134 | 96,594,435 | 124,884,733 | 124,884,733 | ||||||||||||
Net loss per share attributable to ordinary | ||||||||||||||||||
shareholders of | ||||||||||||||||||
Net loss per share-Basic and diluted | (4.83 | ) | (11.29 | ) | (1.75 | ) | (8.11 | ) | (18.91 | ) | (2.93 | ) | ||||||
Net loss per ADS2 attributable to ordinary | ||||||||||||||||||
shareholders of | ||||||||||||||||||
Net loss per ADS-Basic and diluted | (14.49 | ) | (33.87 | ) | (5.25 | ) | (24.33 | ) | (56.73 | ) | (8.79 | ) | ||||||
For the three months ended | For the six months ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||
RMB | RMB | US | RMB | RMB | US$ | ||||||||
(1) Includes share-based compensation | |||||||||||||
expenses included are as follows | |||||||||||||
Fulfillment expenses | - | 7,010 | 1,086 | - | 7,010 | 1,086 | |||||||
Sales and marketing expenses | - | 46,500 | 7,202 | - | 46,500 | 7,202 | |||||||
Technology and content | 10,966 | 295,015 | 45,692 | 24,189 | 303,898 | 47,068 | |||||||
General and administrative expenses | 3,425 | 264,913 | 41,030 | 9,110 | 267,973 | 41,504 | |||||||
Total | 14,391 | 613,438 | 95,010 | 33,299 | 625,381 | 96,860 | |||||||
UNAUDITED RECONCILIATION of GAAP and NON-GAAP RESULTS | ||||||||||||||||||
(All amounts in thousands, except for share, per share data or otherwise noted) | ||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||||
RMB | RMB | US | RMB | RMB | US$ | |||||||||||||
Loss from operations | (336,751 | ) | (1,493,677 | ) | (231,340 | ) | (523,768 | ) | (2,094,185 | ) | (324,347 | ) | ||||||
Add: Share-based compensation expenses | 14,391 | 613,438 | 95,010 | 33,299 | 625,381 | 96,860 | ||||||||||||
Non-GAAP Loss from operations | (322,360 | ) | (880,239 | ) | (136,330 | ) | (490,469 | ) | (1,468,804 | ) | (227,487 | ) | ||||||
Net Loss | (339,817 | ) | (1,433,249 | ) | (221,981 | ) | (534,482 | ) | (2,043,598 | ) | (316,512 | ) | ||||||
Add: Share-based compensation expenses | 14,391 | 613,438 | 95,010 | 33,299 | 625,381 | 96,860 | ||||||||||||
Less: Change in fair value of options and | ||||||||||||||||||
embedded conversion feature | - | (69,094 | ) | (10,701 | ) | - | (79,386 | ) | (12,295 | ) | ||||||||
Non-GAAP net loss | (325,426 | ) | (888,905 | ) | (137,672 | ) | (501,183 | ) | (1,497,603 | ) | (231,947 | ) | ||||||
Net loss attributable to ordinary shareholders | ||||||||||||||||||
of | (467,653 | ) | (1,597,830 | ) | (247,471 | ) | (783,626 | ) | (2,362,031 | ) | (365,831 | ) | ||||||
Add: Share-based compensation expenses | 14,391 | 613,438 | 95,010 | 33,299 | 625,381 | 96,860 | ||||||||||||
Less: Change in fair value of options and | ||||||||||||||||||
embedded conversion feature | - | (69,094 | ) | (10,701 | ) | - | (79,386 | ) | (12,295 | ) | ||||||||
Add: Accretion of convertible redeemable | ||||||||||||||||||
preferred shares to redemption value | 126,094 | 162,467 | 25,163 | 247,402 | 313,680 | 48,583 | ||||||||||||
Add: Accretion of convertible redeemable | ||||||||||||||||||
non-controlling preferred shares to redemption value | 1,742 | 1,724 | 267 | 1,742 | 4,296 | 665 | ||||||||||||
Non-GAAP net loss attributable to ordinary | ||||||||||||||||||
shareholders of | (325,426 | ) | (889,295 | ) | (137,732 | ) | (501,183 | ) | (1,498,060 | ) | (232,018 | ) | ||||||
Shares used in calculating loss per share: | ||||||||||||||||||
Weighted average number of ordinary shares: | ||||||||||||||||||
Basic and diluted | 96,894,953 | 141,586,134 | 141,586,134 | 96,594,435 | 124,884,733 | 124,884,733 | ||||||||||||
Non-GAAP net loss per share attributable to ordinary | ||||||||||||||||||
shareholders of | ||||||||||||||||||
Non-GAAP net loss per share-Basic and diluted | (3.36 | ) | (6.28 | ) | (0.97 | ) | (5.19 | ) | (12.00 | ) | (1.86 | ) | ||||||
Non-GAAP net loss per ADS attributable to ordinary | ||||||||||||||||||
shareholders of | ||||||||||||||||||
Non-GAAP net loss per ADS-Basic and diluted | (10.08 | ) | (18.84 | ) | (2.91 | ) | (15.57 | ) | (36.00 | ) | (5.58 | ) | ||||||
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
(All amounts in thousands, except for share, per share data or otherwise noted) | ||||||||||||||||||
For the three months ended | For the six months ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||||||||
RMB | RMB | US | RMB | RMB | US$ | |||||||||||||
(518,993 | ) | (698,021 | ) | (108,110 | ) | (745,622 | ) | (1,287,568 | ) | (199,419 | ) | |||||||
78,358 | (79,587 | ) | (12,326 | ) | (48,946 | ) | (67,237 | ) | (10,414 | ) | ||||||||
969,733 | 2,179,187 | 337,513 | 1,480,683 | 3,768,944 | 583,735 | |||||||||||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (697 | ) | (32,971 | ) | (5,107 | ) | 5,557 | (7,193 | ) | (1,114 | ) | |||||||
Net increase in cash, cash equivalents and | ||||||||||||||||||
restricted cash | 528,401 | 1,368,608 | 211,970 | 691,672 | 2,406,946 | 372,788 | ||||||||||||
Cash, cash equivalents and restricted cash | ||||||||||||||||||
at beginning of the period | 724,369 | 1,960,720 | 303,677 | 561,098 | 922,382 | 142,859 | ||||||||||||
Cash, cash equivalents and restricted cash | ||||||||||||||||||
at end of the period | 1,252,770 | 3,329,328 | 515,647 | 1,252,770 | 3,329,328 | 515,647 | ||||||||||||
_______________
1 Adjusted net loss is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expenses and changes in fair value of options and embedded conversion feature.
2 Each ADS represents three Class B ordinary shares.
Source:
2021 GlobeNewswire, Inc., source