(Yicai Global) Aug. 23 -- Shares in Dada Nexus climbed yesterday after the Chinese owner of on-demand delivery platforms JD Daojia and Dada Now said that its net losses shrank 9.6 percent in the second quarter from the same period last year, as business picks up.

Dada Nexus’ share price [NASDAQ:DADA] closed up 4.5 percent at USD6.53 yesterday.

Dada Nexus accrued losses of CNY578.8 million (USD84.5 million) in the three months ended June 30, the Shanghai-based company said in its latest earnings report released yesterday. Revenue jumped 54.7 percent to CNY2.3 billion (USD321 million).

Earnings from Dada Now, a crowdsourcing platform for express delivery, soared 37.4 percent to CNY815.6 million, while that of JD Daojia, an online hub of grocery stores, surged 66.3 percent to CNY1.4 billion.

Revenue could swell as much as 45 percent in the third quarter year on year to CNY2.4 billion, said the firm, which is owned by e-commerce giant JD.com.

JD Daojia’s gross merchandise volume leapt 68.9 percent in the year ended June 30 to CNY54.6 billion, while the number of active users increased 42 percent to 72.8 million.

“We are proud to deliver solid results amid macro uncertainties, thanks to the invaluable support from our employees, customers and strategic partners,” said Chairman and Chief Executive Officer Philip Kuai. “Riding on the trend towards on-demand shopping and leveraging our dual-engine business comprising JD Daojia and Dada Now, we are well prepared to head into a brighter future.”

Kuai, though, who is also founder of the firm, is stepping down as chairman and CEO, effective Aug. 31, Dada Nexus said in a separate statement the same day. He will be replaced by JD Retail Chief Executive Officer Xin Lijun. President He Huijian will be responsible for daily operations following Kuai’s retirement.

JD.com, which holds 52 percent of Dada Nexus’ share capital, will start to include Dada’s financial results in its own financial statements, the two parties said in February.

“Entering 2022 together with Beijing-based JD.com, we are poised to play a bigger role in empowering the digital transformation of the real economy, while serving consumers with everything on-demand,” Kuai said in March.

JD.com is mulling an on-demand food delivery service to go head-to-head with takeout giants Meituan and Alibaba Group Holding, Bloomberg TV reported in June, citing Xin.

Vendors will sell their meals on JD Daojia and Dada Now will be responsible for delivery, The Paper reported on June 17, citing informed sources. Cities such as Zhengzhou in central Henan province will pilot the service. The team is in contact with local restaurants to enroll them, the report said.

Editor: Kim Taylor