Compar with many companies that start from scratch Nearly 80% of related-party and reli on their own efforts, Duodian Shuzhi’s cooperation with Wumart Group has been establish since its inception. Wumart is its largest customer and an affiliat entity with which it has a close relationship.
Although Duodian Digital Intelligence has been trying to distance itself from Wumart and describe itself as an independent company, as Duodian Digital Intelligence partner Liu Guihai once said publicly: “Wumart is a good testing ground, but Duodian is not Wumart’s e-commerce department, but aims to be a large platform that empowers traditional retail.”
But the fact is, whether it is the founder or the main customer source
Of Duodian Digital Intelligence’s revenue, Nearly 80% of related-party Duodian Digital Intelligence cannot get rid of the Wumart label.
In detail, as of the end of each period of the telegram data reporting period, Duodian Shuzhi’s revenue from Wumart Group was RMB 384 million, RMB 562 million, RMB 821 million and RMB 485 million, respectively, accounting for 45.3%, 42.3%, 51.8% and 51.6% of the current period’s revenue, respectively; the revenue from Metro entities (or Metro Supply Chain Group after the reorganization of MDL) was RMB 86.6 million, RMB 258 million, RMB 260 million and RMB 184 million, respectively, accounting for 10.2%, 19.4%, 16.4% and 19.6% of the current period’s revenue.
Image source: Duodian prospectus
During the reporting period, the company’s providing personalized service revenue from relat parties such as Wumart Group was RMB 599 million, RMB 966 million, RMB 1.202 billion and RMB 735 million, respectively, accounting for 70.6%, 72.7%, 75.9% and 78.2% of the revenue, respectively, and relat -party transactions continu to increase; the revenue from independent customers was RMB 221 million, RMB 267 million, RMB 244 million and Nearly 80% of related-party RMB 125 million, respectively, accounting for 26.1%, 20.1%, 15.3% and 13.3% of the revenue, respectively, showing a continuous downward trend.
The above data shows that Duodian Digital Intelligence is particularly dependent on relat entities
Even if there are independent customers, it book your list is unknown whether they have an indirect relationship with Wumart, and this part of the revenue is declining year by year.
“Dependence” is often accompani by crisis. However, the highly ti and heavily dependent model of Wumart requires Duodian Digital Intelligence to surpass the decline rate of the associat entities it relies on (offline retail sales) while still not crossing the profit line.