DADA Dada Nexus Ltd

Dada Nexus Limited (NASDAQ: DADA, “Dada”, the “Company”, or “we”), China’s leading local on-demand retail and delivery platform, today released its 2023 ESG report, sharing progress and demonstrating its commitment to creating a more sustainable future. The report details Dada’s key initiatives and development in ESG efforts surrounding shareholders, users, partners, employees, riders, and community.

To view the report in full, please visit the ESG section on the Company’s IR website at https://ir.imdada.cn/corporate/environmental-social-and-governance. Highlights of the Company’s ESG efforts and performance include:

Strengthening the Governance and Responsibility Framework

• We place great importance on board independence and diversity, with independent directors currently representing 60% and female directors 80%.
• We strictly implement business ethics standards, with compliance training covering 100% of employees.
• We continue to strengthen information security and privacy protection, implementing comprehensive systems and product technologies for end-to-end control. Our core system has newly received ISO 27001 and ISO 27701 certifications.
• We regularly conduct stakeholder surveys, with 24 significant ESG issues identified and updated during the reporting period.

Enhancing Service Quality and Improving User Experience

• We strengthen product quality management through onboarding screening, platform rules, credit scores, special rectification campaigns, and merchant training, resulting in an over 30% decline in Call per Order (CPO) for quality related issues among all JD NOW orders from 23Q1 to 23Q4.
• We dedicatedly guarantee fulfillment quality through customized fulfillment solutions, operational automation, tiered rider fleet structure, and extensive rider training, with Dada Now’s on-demand delivery service achieving a fulfillment rate of over 95%.
• We enhance customer service levels by improving the knowledge pool, conducting regular quality inspections and exams, and upgrading processes and systems, resulting in after-call satisfaction rate of approximately 90%.
• Continuous optimization across the entire transaction journey from products, fulfillment to after-sales has led to a consistent rise in JD NOW’s user NPS, with a 15% increase from 23Q1 to 23Q4.

Establishing Win-Win Cooperation Across Industry Value Chain

• We enhance supply chain ESG management by incorporating ESG factors into supplier tendering and performance assessments, and conducting themed training on green and low-carbon practices.
• We have collaborated with over 500,000 merchant stores and more than 300 brands, aiming to promote high-quality development in the on-demand retail industry through operational support and optimization, system development and iteration, training empowerment, and co-creating campaigns.
• We actively collaborate with university platforms and autonomous vehicle manufacturers to explore and implement cutting-edge technologies.
• We participate in the development of standards such as “On-demand Delivery Service Standards” and “On-demand Retail Industry Terminology and Key Indicators,” continuously aiding industry development.

Enabling Employee Development and Improving Workplace Happiness

• We foster a diverse and fair workplace, where women made up 40% of the overall and mid-to-senior level employees, with median employee compensation for female being 0.2% higher than that for overall employees.
• We firmly implement employee rights protection, establishing complaint and rapid response channels, and achieving 100% coverage of collective agreements.
• We adopt effective employee incentive system, with performance-based variable pay covering 100% of employees and equity incentives covering 19% of employees.
• We develop a diverse training system to empower employees to enhance their professional and leadership skills, with a training coverage of 100% and an average annual training duration of 7.6 hours per person.
• The average employee satisfaction score for the year was 4.39 out of 5, and the voluntary turnover rate decreased by more than 3 percentage points year over year.

Upholding Rider Rights to Support Flexible Employment

• We fully leverage our role as an inclusive flexible employment platform, with over 1.2 million riders completing orders on Dada Now throughout the year, of which 12% were female riders.
• We relentlessly upgrade the end-to-end rider safety management mechanism that includes training, reminders and prohibitions, timely discovery, and post-incident handling and right protection, achieving an average rider satisfaction rate of over 85% with platform safety measures.
• We continually optimize training content and channels for riders, conducting 114,000 offline training sessions that cover over 340,000 participants, and online training contents were accessed by riders for over ten million times throughout the year.
• We implement various rider care programs, launching approximately 1,000 offline care events throughout the year, while initiating new projects including the Education Fund.

Promoting Green Development and Actively Giving Back to Society

• We conduct comprehensive analysis on Scope 1, 2, & 3 greenhouse gas emissions, and have obtained third-party verification. We implement energy saving and emission reduction efforts and realized an 18% reduction in Scope 1 and 2 carbon emissions.
• We continue to increase the coverage of green packaging, with the proportion of biodegradable plastic used during the year increasing to 92%.
• We fully utilize the low-carbon advantage of on-demand delivery service, with delivery distance exceeding 2.2 billion kilometers during the year, resulting a reduction of carbon emissions by 600,000 tons.
• We faithfully implement "Dada Charity" program leveraging our platform's strength together with merchants, brands, and riders, to engage in poverty alleviation, education support, ecological protection, etc.

Forward-Looking Statements

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. Dada may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Dada’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Dada’s strategies; Dada’s future business development, financial condition and results of operations; Dada’s ability to maintain its relationship with major strategic investors; its ability to offer quality on-demand retail experience and provide efficient on-demand delivery services; its ability to maintain and enhance the recognition and reputation of its brands; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Dada’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Dada does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

About Dada Nexus Limited

Dada Nexus Limited is China’s leading local on-demand retail and delivery platform. It operates JD NOW, formerly known as JDDJ, one of China’s largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The Company’s two platforms are inter-connected and mutually beneficial. The vast volume of on-demand delivery orders from the JD NOW platform increases order volume and density for the Dada Now platform. Meanwhile, the Dada Now platform enables improved delivery experience for participants on the JD NOW platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure.

For more information, please visit https://ir.imdada.cn/.

For investor inquiries, please contact:

Dada Nexus LimitedMs. Caroline DongE-mail: ir@imdada.cn

Christensen

In ChinaMr. Rene VanguestainePhone: +86-178-1749-0483E-mail: rene.vanguestaine@christensencomms.com

In USMs. Linda BergkampPhone: +1-480-614-3004E-mail: linda.bergkamp@christensencomms.com

For media inquiries, please contact:

Dada Nexus Limited E-mail: PR@imdada.cn