GlobeNewswire Inc | Aug 26, 2021 06:00PM EDT

August 26, 2021

BEIJING, Aug. 26, 2021 (GLOBE NEWSWIRE) -- Missfresh Limited (Missfresh or the Company) (NASDAQ: MF), an innovator and leader in Chinas neighborhood retail industry, today announced its unaudited financial results for the second quarter ended June30, 2021.

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 from RMB1,346.0 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 from RMB1,708.4 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 from RMB93.7 for the second quarter of 2020.

Mr. Zheng Xu, Founder, Chairman and Chief Executive Officer of the Company, commented, We are very pleased to report solid operational and financial results for the second quarter, highlighted by 40.7% year-on-year revenue growth. Our results demonstrate the robustness and effective execution of our strategy, further cementing our leadership position in the industry. Our unwavering dedication to the neighborhood retail market, extensive industry know-how and cutting-edge technology enable us to lead digital transformation across neighborhood retail market segments in China, meeting the evolving needs of consumers, as we pursue our mission to help every family enjoy quality grocery at their fingertips.

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 Mr. Xu. The neighborhood retail industry in China, which encompasses multiple business models to accommodate diverse consumer needs for fresh produce and fast-moving consumer goods (FMCG) shopping, has tremendous potential. Its growth is accelerating rapidly due to the wave of industry-wide digital transformation.

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 Missfresh in the long run.

Ms. Catherine Chen, Co-Chief Financial Officer of the Company, said, With our strategic focus on sustainable growth, we have been constantly building upon our brand to attract new customers and retain repeat users. Our recent listing on the NASDAQ further reinforces our brand name recognition and influence in the industry. In addition, supported by our comprehensive Retail Artificial Intelligence Network system (RAIN), we are able to meet the needs of our customers with ensured quality of product offered on our platform and speedy shopping experiences. This quarters success will enable us to explore more strategic partnerships. Going forward, we will remain committed to expanding our supply chain capacity, strengthening brand equity and enhancing technological capabilities to maintain and improve the superior user experience we deliver to our growing user base.

Business Highlights and Recent Development

On-demand DMW (Distributed Mini-warehouse) Business

-- As of June 30, 2021, the Company had operated 625 DMWs in 16 cities in China 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 Missfreshs 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 in China and had started operation of 34 intelligent fresh markets in 11 cities in China.

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 RMB1,894.5million (US$293.4 million) for the second quarter of 2021, representing an increase of 40.7% year-over-year from RMB1,346.0million in the same period of 2020 and an increase of 23.8% quarter-over-quarter.

Sales of products through online platforms increased by 41.2% to RMB1,854.1 million (US$287.2 million) for the second quarter of 2021, from RMB1,313.4million in the same period of 2020, primarily driven by the increase in number of orders fulfilled as a result of increased transacting users in the reporting period.

Other revenues reached RMB40.4 million (US$6.3 million) for the second quarter of 2021, representing an increase of 23.6% from RMB32.7 million in the same period of 2020, primarily due to an increase in sales of products through convenience go business.

Cost of revenues increased by 65.5% to RMB1,752.6 million (US$271.4 million) for the second quarter of 2021, from RMB1,059.1 million in the same period of 2020.

Gross profit was RMB141.9 million (US$22.0 million) for the second quarter of 2021, representing a decrease of 50.6% from RMB286.9 million in the same period of 2020.

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 RMB1,635.5 million (US$253.3 million) for the second quarter of 2021, compared to RMB623.7million in the same period of 2020, with detailed breakdown as below.

Fulfillment expenses were RMB541.0 million (US$83.8 million) for the second quarter of 2021, compared to RMB342.2 million in the same period of 2020, primarily attributable to the increase in number of orders fulfilled and the increase in product delivery, warehouse operations, quality control and customer service staff for further enhancement of the Companys fulfillment capabilities. Fulfillment expenses as a percentage of net revenues was 28.6% in the second quarter of 2021, compared with 28.8% in the first quarter of 2021 and 25.4% in the second quarter of 2020.

Sales and marketing expenses were RMB304.7 million (US$47.2 million) for the second quarter of 2021, compared to RMB139.2 million in the same period of 2020, primarily due to the increase in advertising and marketing promotion expenses as the Company increased investment in targeted advertisements in residential neighborhoods to acquire new customers and retain existing customers, as well as the increase in share-based compensation recognized upon the completion of Missfreshs initial public offering (IPO) in June 2021.

General and administrative expenses were RMB396.0 million (US$61.3 million) for the second quarter of 2021, compared to RMB58.7 million in the same period of 2020. The increase was mainly due to the increase in share-based compensation recognized upon the completion of the IPO in June 2021, and the increase in the number of management staff for new business initiatives.

Technology and content expenses were RMB393.8 million (US$61.0 million) for the second quarter of 2021, compared to RMB83.6 million in the same period of 2020. The increase was mainly attributable to the increase in share-based compensation recognized upon the completion of the IPO in June 2021.

Loss from operations was RMB1,493.7 million (US$231.3 million) for the second quarter of 2021, compared with a loss of RMB336.8 million in the same period of 2020.

Net loss was RMB1,433.2 million (US$222.0 million) for the second quarter of 2021, compared with RMB339.8 million in the same period of 2020.

Non-GAAP adjusted net loss1 was RMB888.9 million (US$137.7 million) for the second quarter of 2021, compared to adjusted net loss of RMB325.4 million in the same period of 2020.

Basic and diluted net loss per American depositary shares (ADS) were both RMB33.87 (US$5.25) for the second quarter of 2021, compared to basic and diluted net loss of RMB14.49 per ADS in the second quarter of 2020.

Non-GAAP basic and diluted net loss per ADS were both RMB18.84 (US$2.91) for the second quarter of 2021, compared to basic and diluted net loss of RMB10.08 per ADS in the second quarter of 2020.

Balance Sheets and Cash Flow

As of June 30, 2021, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3,427.3 million (US$530.8 million), compared with RMB1,041.5 million as of December 31, 2020. The increase was primarily due to net proceeds received from the Companys IPO in June 2021.

In the second quarter of 2021, net cash used in operating activities was RMB698.0 million (US$108.1 million).

Appointment of Co-CFOs

The Companys board of directors (the Board) has recently approved the appointment of Mr. Jun Wang and Ms. Xi (Catherine) Chen as co-chief financial officers of the Company.

Ms. Xi (Catherine) Chen joined the Company in January 2021 and has been the Companys senior vice president. Prior to joining the Company, Ms. Chen served as chief financial officer of LIZHI INC. (Nasdaq: LIZI) from 2019 to 2020. Previously, Ms. Chen worked in Goldman Sachs Investment Banking Division from 2010 to 2019 and served as an executive director from 2016 to 2019. Before that, Ms. Chen worked in the London offices of the Investment Banking Division of Credit Suisse from 2009 to 2010. Ms. Chen received her bachelors degree and masters degree from Tsinghua University.

Business Outlook

For the third quarter of 2021, the Company currently expects net revenues to be in the range of RMB2,020 million to RMB2,090 million, representing a year-over-year growth of approximately 40% to 45%, and gross margin to improve by 250 basis points to 350 basis points on a quarter-over-quarter basis.

The above outlook is based on the current market conditions and reflects the Companys 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 9:00 PM U.S. Eastern Time on August 26, 2021 (9:00 AM Beijing/Hong Kong time on August 27, 2021). Details for the conference call are as follows:

Event Title: Missfresh Limited Second Quarter 2021 Earnings Conference CallConference ID: 8895626Registration 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 September 2, 2021, by dialing the following telephone numbers:

United States: +1-855-452-5696International: +61-2-8199-0299Hong Kong, China: 800-963-117Mainland China: 400-632-2162Replay Access Code: 8895626

About Missfresh Limited

Missfresh Limited is an innovator and leader in Chinas neighborhood retail industry. The Company invented the Distributed Mini Warehouse (DMW) model to operate an integrated online-and-offline on-demand retail business focusing on offering fresh produce and fast-moving consumer goods (FMCGs). Through the Missfresh mobile application and Mini Program embedded in third-party social platforms, consumers can easily purchase quality groceries at their fingertips and have the finest products delivered to their doorstep in 37 minutes on average

Leveraging its core capabilities, Missfresh launched an intelligent fresh market business in the second half of 2020. This innovative business model is dedicated to standardizing and transforming fresh markets into smart fresh malls. Missfresh has also built up a full stack of proprietary technologies that empower a wide range of participants in the neighborhood retail business, such as supermarkets, fresh markets and local retailers, to jumpstart and efficiently operate their business in a digital way.

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 United States of America (U.S. GAAP). The company defines non-GAAP loss from operations as loss from operations excluding share-based compensation. The company defines non-GAAP net loss attributable to ordinary shareholders as net loss attributable to ordinary shareholders excluding share-based compensation, change in fair value of options and embedded conversion feature, accretion of convertible redeemable preferred shares to redemption value, and accretion of convertible redeemable non-controlling preferred shares to redemption value. Non-GAAP basic net loss per share is calculated by dividing non-GAAP net loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net loss per share is calculated by dividing non-GAAP net loss attributable to ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effect of share-based awards as determined under the treasury stock method. Non-GAAP net loss per ADS is equal to non-GAAP net loss per share multiplied by three.

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 companys 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 Companys 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 Companys 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 U.S. dollars at a specified rate solely for the convenience of the reader.Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB6.4566 to US$1.00, the exchange rate on June 30, 2021 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollars amounts referred could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains statements that may constitute forward-looking statements which are made 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. Statements that are not historical facts, including statements about the Companys beliefs, plans, and expectations, are forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends, which involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Companys control. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Companys filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

Missfresh LimitedInvestor RelationsTel: +86 (10) 5954-4422Email: ir@missfresh.cn

The Piacente Group, Inc.Jenny CaiTel: +86 (10) 6508-0677E-mail: missfresh@tpg-ir.com

In the United States:

The Piacente Group, Inc. Brandi PiacenteTel: +1-212-481-2050E-mail: missfresh@tpg-ir.com



MISSFRESH LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share, per share data or otherwise noted)

As of December 31, June 30, 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 192,824 241,920 37,469 assetsTotal 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 469,644 688,416 106,622 assets, netProperty 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 1,078,878 991,602 153,580 convertible noteAccounts payable 1,088,431 1,353,672 209,657 Deferred revenue 119,214 120,558 18,672 Accrued expenses and other 347,468 363,295 56,267 current liabilitiesOperating lease liabilities, 252,740 322,444 49,940 currentOptions and embedded conversion 11,117 - - featureTotal current liabilities 2,897,848 3,151,571 488,116 Non-current liabilities Operating lease liabilities, 171,433 305,273 47,281 non-currentTotal 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 $0.0001 par value;75,555,520 and 200,000,000shares authorized asof December 31, 2020 and June30, 2021;75,555,520 and 86,383,174 shares 52 59 9 issued andoutstanding as of December 31,2020 and June 30,2021)Class B Ordinary shares (US$ 0.0001 par value,476,660,736 and 4,700,000,000shares authorizedas of December 31, 2020 and June30, 2021;9,527,219 and 619,971,303 shares 6 385 60 issued andoutstanding as of December 31,2020 and June 30,2021)Additional paid-in capital - 13,218,281 2,047,251 Accumulated deficit (9,387,528 ) (11,727,146 ) (1,816,304 )Accumulated other comprehensive (48,195 ) (52,934 ) (8,198 )lossTotal Missfresh Limited (9,435,665 ) 1,438,645 222,818 Shareholders? (deficit)/equityNon-controlling interest - 4,956 766 Total Shareholders? (deficit)/ (9,435,665 ) 1,443,601 223,584 equityTotal Liabilities, Mezzanine equity andShareholders' (deficit)/equity 2,162,762 4,900,445 758,981

MISSFRESH LIMITED

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?? June 30, June 30?? 2020 2021 2020 2021 RMB RMB US RMB RMB US$Net revenues Sales ofproducts 1,313,386 1,854,120 287,167 2,981,681 3,346,900 518,369 through onlineplatformsOther revenues 32,662 40,360 6,251 54,182 77,807 12,051 Total net 1,346,048 1,894,480 293,418 3,035,863 3,424,707 530,420 revenuesCost of (1,059,125 ) (1,752,626 ) (271,447 ) (2,238,132 ) (3,093,875 ) (479,180 )revenuesFulfillment (342,202 ) (540,990 ) (83,789 ) (757,377 ) (981,214 ) (151,971 )expenses^(1)Sales andmarketing (139,150 ) (304,700 ) (47,192 ) (237,806 ) (472,315 ) (73,152 )expenses^(1)General andadministrative (58,736 ) (396,012 ) (61,334 ) (140,569 ) (482,865 ) (74,786 )expenses^(1)Technology and (83,586 ) (393,829 ) (60,996 ) (185,747 ) (488,623 ) (75,678 )content^(1)Total cost andoperating (1,682,799 ) (3,388,157 ) (524,758 ) (3,559,631 ) (5,518,892 ) (854,767 )expensesLoss from (336,751 ) (1,493,677 ) (231,340 ) (523,768 ) (2,094,185 ) (324,347 )operationsOther income/ 121 6,193 959 (5,474 ) 3,421 530 (expense), netChange in fairvalue of options andembeddedconversion - 69,094 10,701 - 79,386 12,295 featureInterest (2,993 ) (14,649 ) (2,269 ) (4,851 ) (31,807 ) (4,926 )expense, netShare ofresults of (194 ) (195 ) (30 ) (389 ) (396 ) (61 )equityinvesteesLoss beforeincome tax (339,817 ) (1,433,234 ) (221,979 ) (534,482 ) (2,043,581 ) (316,509 )expensesIncome tax - (15 ) (2 ) - (17 ) (3 )expensesNet loss (339,817 ) (1,433,249 ) (221,981 ) (534,482 ) (2,043,598 ) (316,512 )Net lossattributable to non-controllinginterests - (390 ) (60 ) - (457 ) (71 )shareholdersNet lossattributable to (339,817 ) (1,433,639 ) (222,041 ) (534,482 ) (2,044,055 ) (316,583 )MissfreshLimitedAccretion ofconvertible redeemablepreferredshares to (126,094 ) (162,467 ) (25,163 ) (247,402 ) (313,680 ) (48,583 )redemptionvalueAccretion ofconvertible redeemablenon-controllingpreferredshares to (1,742 ) (1,724 ) (267 ) (1,742 ) (4,296 ) (665 )redemptionvalueNet lossattributable to ordinaryshareholders ofMissfresh (467,653 ) (1,597,830 ) (247,471 ) (783,626 ) (2,362,031 ) (365,831 )LimitedShares used incalculating loss per share:Weightedaverage number of ordinaryshares:Basic and 96,894,953 141,586,134 141,586,134 96,594,435 124,884,733 124,884,733 dilutedNet loss pershare attributable toordinaryshareholders ofMissfresh LimitedNet loss pershare-Basic and (4.83 ) (11.29 ) (1.75 ) (8.11 ) (18.91 ) (2.93 )dilutedNet loss perADS^2 attributable toordinaryshareholders ofMissfresh LimitedNet loss perADS-Basic and (14.49 ) (33.87 ) (5.25 ) (24.33 ) (56.73 ) (8.79 )diluted

For the three months For the six months ended ended June June 30?? June June 30?? 30, 30, 2020 2021 2020 2021 RMB RMB US RMB RMB US$(1)Includesshare-based compensationexpenses included are as followsFulfillment expenses - 7,010 1,086 - 7,010 1,086Sales and marketing - 46,500 7,202 - 46,500 7,202expensesTechnology and content 10,966 295,015 45,692 24,189 303,898 47,068General and 3,425 264,913 41,030 9,110 267,973 41,504administrative expensesTotal 14,391 613,438 95,010 33,299 625,381 96,860

MISSFRESH LIMITED

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?? June 30, June 30?? 2020 2021 2020 2021 RMB RMB US RMB RMB US$ Loss from (336,751 ) (1,493,677 ) (231,340 ) (523,768 ) (2,094,185 ) (324,347 )operationsAdd:Share-based 14,391 613,438 95,010 33,299 625,381 96,860 compensationexpensesNon-GAAP Loss (322,360 ) (880,239 ) (136,330 ) (490,469 ) (1,468,804 ) (227,487 )from operations Net Loss (339,817 ) (1,433,249 ) (221,981 ) (534,482 ) (2,043,598 ) (316,512 )Add:Share-based 14,391 613,438 95,010 33,299 625,381 96,860 compensationexpensesLess: Change infair value of options and embeddedconversion - (69,094 ) (10,701 ) - (79,386 ) (12,295 )featureNon-GAAP net (325,426 ) (888,905 ) (137,672 ) (501,183 ) (1,497,603 ) (231,947 )loss Net lossattributable to ordinaryshareholdersof Missfresh (467,653 ) (1,597,830 ) (247,471 ) (783,626 ) (2,362,031 ) (365,831 )LimitedAdd:Share-based 14,391 613,438 95,010 33,299 625,381 96,860 compensationexpensesLess: Change infair value of options andembeddedconversion - (69,094 ) (10,701 ) - (79,386 ) (12,295 )featureAdd: Accretionof convertible redeemablepreferredshares to 126,094 162,467 25,163 247,402 313,680 48,583 redemptionvalueAdd: Accretionof convertible redeemablenon-controllingpreferredshares to 1,742 1,724 267 1,742 4,296 665 redemptionvalueNon-GAAP netloss attributable toordinaryshareholders ofMissfresh (325,426 ) (889,295 ) (137,732 ) (501,183 ) (1,498,060 ) (232,018 )Limited Shares used incalculating loss per share:Weightedaverage number of ordinaryshares:Basic and 96,894,953 141,586,134 141,586,134 96,594,435 124,884,733 124,884,733 dilutedNon-GAAP netloss per share attributable toordinaryshareholders ofMissfresh LimitedNon-GAAP netloss per (3.36 ) (6.28 ) (0.97 ) (5.19 ) (12.00 ) (1.86 )share-Basic anddilutedNon-GAAP netloss per ADS attributable toordinaryshareholders ofMissfresh LimitedNon-GAAP netloss per (10.08 ) (18.84 ) (2.91 ) (15.57 ) (36.00 ) (5.58 )ADS-Basic anddiluted

MISSFRESH LIMITED

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?? June 30, June 30?? 2020 2021 2020 2021 RMB RMB US RMB RMB US$Net Cashused in (518,993 ) (698,021 ) (108,110 ) (745,622 ) (1,287,568 ) (199,419 )OperatingActivitiesNet Cashprovided by/ (used in) 78,358 (79,587 ) (12,326 ) (48,946 ) (67,237 ) (10,414 )InvestingActivitiesNet Cashprovided by 969,733 2,179,187 337,513 1,480,683 3,768,944 583,735 FinancingActivitiesEffects ofexchangeratechanges oncash, cash (697 ) (32,971 ) (5,107 ) 5,557 (7,193 ) (1,114 )equivalentsandrestrictedcashNetincrease incash, cash equivalentsandrestricted 528,401 1,368,608 211,970 691,672 2,406,946 372,788 cash Cash, cashequivalentsand restrictedcashatbeginning 724,369 1,960,720 303,677 561,098 922,382 142,859 of theperiod Cash, cashequivalentsand restrictedcashat end of 1,252,770 3,329,328 515,647 1,252,770 3,329,328 515,647 the period

_______________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.