Q4 2020 Ruhnn Holding Ltd Earnings Call
[music].
Fourth quarter.
Fiscal year trend.
At this time, all briefs bunch over in listen only mode based conference call is being recorded I will now turn to call over to your host Mr., turning some senior director of long. Please go ahead.
Thank you. Thank you.
Good morning, everyone and welcome to our Holdings earnings Conference call for the fourth quarter on the pool physical year Twentytwenty.
As a reminder, this conference is being recorded.
The Companys financial and operating results, what you feel with press released earlier today an available online.
You can download <unk> earnings press release on the file the Companys email distribution date by visiting the section of the company's website <unk> Dot dot.
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I mean, they serve our founder direct on that deal on the mean check you want our CFO will be given some prepared remarks.
Following the prepared remarks meet new phone, our founder and chairman of the board of Directors will also join us for the Canadian fashion.
Before we continue please know that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U.S. private securities.
Gauging Reform Act up 1995.
Forward looking statements involve inherent risks and uncertainties.
The companys actual results may be materially different from the views expressed today.
Well the information regarding these and other risks and uncertainties, including the southern filings the company with that with a U.S. Securities Exchange Commission, including its annual report on form 10 cap.
The company doesn't assume an obligation to update any forward looking statements, except as required by law.
Please also note that the Companys earnings press release, and this conference call.
Uhhuh discussions on audited GAAP financial information has got what do these non-GAAP financial matters.
The company's press release contains a reconciliation of the UN audited netapp matters to the UN audited most directly comparable GAAP matter.
Now I will turn to go over 200 founder director of Theo listen myth Sune. Please go ahead.
Oh, Thank you starting.
Everyone. Thank you for joining our earnings conference call for the fourth quarter and the full fiscal year Twentytwenty.
We finished a spectacular fiscal year, two new 20, with a strong overall operational and financial performance.
Despite the impact or Covidien 19 endemic in China during the fourth quarter.
Historically, lower student low cost or for our business.
At the same time, we continued improving operational efficiency and profitability.
Providing authority the foundation for our long term sustainable gross.
For the full fiscal year Twentytwenty.
Our total net revenue recorded RMB 1.3 median outreach so its revenue onto the platform model reached RMB three hands with under 3 million with a year over year increase of over 100%.
We achieved our revenue takita for the fiscal year, Twentytwenty and that the libertas satisfactory full year results for the first a complete fiscal year following our IPO April 29.
Teams [noise].
In January 20 to 23 things the external challenges caused by the cover the 19 outbreak.
And the switching of hours to the party marching and the brand product to manufacturing logistics and the fulfillment, where there was to be affected due to various travel restrictions and the current team addus imposed in China.
And we implemented the various response plants in a timely manner to mitigate the impact on overall spending.
On the prime as a means to bring the 50 under the house of all employees, we have gradually redeemed operation since mid February according to the requirements of local comment.
The overall impact and the interruption operation has being managed it to a minimum level.
And the in fact, our supply chain and the logistics, how being gradually recovering to normal levels since March.
Through our efforts we are pleased to to kick off the full fiscal year, two new tente with outstanding without.
Looking back over the past year, we maintained a rapid growth momentum across our core business now.
For the full fiscal year, two new 20 total G.M., we increased 41% and the total net revenue increased 19%.
Our year over year basis.
Very good service revenue on the platform model increased over 100% year over year.
But adjusted net loss attributable to Han narrow the by 81%.
We also achieved with the positive net cash provided by operating activities.
Raposa performance is a testament to the strength and a.
Our ability of our business model and our strong execution capabilities.
Benefit to the by our first mover advantage, we continue to furthering our exploration and solidifying our leading position in chinas internet acute our ecommerce sector.
The continue expansion of our platform business and the further exploration overtime birth monetization channels onto our platform model continued to be critical growth drivers in the past few quarters as well as an important part of long term cost strategy.
The online sharing store business that we hit initiative in the third quarter, our fiscal year 29 team continue to expanding its in fiscal year Twentytwenty.
With revenue generated from the online sharing increasing nearly 700% year over year.
Revenue generated from the owners share reinstall as a percentage of total service revenue under the patent model grew to nearly 20% in the full fiscal year Twentytwenty from single day to feature in the fiscal year 2019.
At the same time, we continue the setting up a diverse caps of all my sharing stores from all on the mall.
In turn on the incubated two hours with accidental marketing skills.
Through our Qs distinct the personal styles and large followers peers.
As well as our precious matching capabilities.
Our Q aeros activity rack mounted various types of third party marching merchant products with high quality to dive back on to customers.
Tracking and the converting traffic from major social media platforms, and effectively achieving traffic and accounting to monetization.
Others without the enhancer retention and the conversion efficiency of they are wide range our fans.
Significantly improved the star repurchase suites.
At the end of fiscal year, Twentytwenty sharing star business habits successfully operated for more than 12 month and had to continuously achieved accident operating performance, which will also be of our main growth drivers in the next fiscal year.
In addition, our E commerce Lau streaming business grew rapidly in the second half of fiscal year, two new 20 E. Commerce live streaming is me is not new to hand, as our Q arrowhead being utilizing the allow streaming to introduce our oil apparel products on the our full service model.
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At present E commerce allow streaming how being extended the to direct labs streaming fields of out of all of whom the apparel brands and for third party merchant and brand.
The Q out with and as those who resonates with followers as a deep libel and they are endorsements our product.
Influenced followers buying decisions.
Accumulating a large fan base on social media platforms.
After cooperating with third party merchants and grant our influential coherus can rapidly amplify their business value by leveraging this deeper and intimate connection with their fan base.
So we got continuous efforts and the exploration ecommerce labs streaming business in the past or two quarters.
E Commerce now streaming has emerged as an important the monetization channel onto the Pelephone model.
Great today, reaching the Q ehrman tradition channels, and the and the better leveraging our present matching capabilities.
Our E Commerce Lau streaming business has delivered good results since the third quarter fiscal year Twentytwenty.
Generating approximately 20% of the total service revenue on the platform model.
We are receiving positive positive feedback from merchants and consumers.
Leveraging on the main competitive advantage of acute our inhibition.
Our Q era has a large number of high quality fast with strong stickiness on different a social media platforms.
Who have converted to consumers of our ecommerce Lau streaming business.
With very good convention results.
This allowed us to minimize and the extra resource allocation required from the company in a way.
In the future, we will cooperate with more social media platforms with E. Commerce now streaming functions. In addition to top all I was streaming platform.
To further enhance Qs monetization capabilities.
Through the E Commerce Lau streaming, which has emerged as an important that monetization channel for our Q hours.
Our leading Q, our incubation and transaction platform has also become cooperation platform for emerging fashion brands in China.
Brands now not only aimed to increase the fields, but also need us to empower their overall marketing program to resign brand and to improve efficiency.
As of March 30, Onest Twentytwenty.
We had to partner with a total of one sovereigns and a 35 brands in our advertising service.
Representing.
64% growth from 600, and a 32 brands as of March 31st 2019.
Our efforts have begun to bear fruit reflected in positive feedback we have received from third party merchant and brand.
As well as more potential cooperation opportunities that have surfaced from advertising agencies and brands.
Including the magic.
Once and international wound on brands.
All of these achievements have enabled us to form of completes the brand the metrics that covers multiple areas.
We will continue growing the advertising business and look forward to collaborating and a three more brands both domestically and globally.
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Our enrich and the diverse Q air proof is viewed by our strong capabilities in Q erring cultivation and development and flexible cooperation models with Carolyn.
As of March 31st Twentytwenty. The total number of Chiara founded by out through long term agreements reached 168.
As an aggregate to number of fan of over 200, and the six meeting a year over year growth.
31% and 33%.
Respectively, which are our major social media assets.
Some of our new rates than Q hours were mainly focused on leveraging their strong marketing capabilities.
Our iconic social media platforms, such as tick Tock Crisil little read a book and the BBB.
As the already habits depot and large campaigns that are driving extensive online traffic.
Further our Qs influence on these platforms, we will be further elevated Alberta, our comprehensive training.
The us their marketing capabilities will be further enhanced.
In addition, managed social media platforms have launched the twos too happy user skin followers, which are beneficial for Q air performs like to Han.
Enabling us to incubate acute announced and have them through without them base in a more systematic and efficient survey.
Furthermore, I would also like to discuss some additional information regarding our platform Q over Q classification.
As an addition nomads to assess our platform kiosk performance.
We classify our platform Cuverro based on the total service revenue generated by the Q arrow onto the platform model during the previous Paramount.
Our platform top tier two hour increased from one at on March 31st 2019 to eight as of March 31st to Twentytwenty.
The number of our platform top tier established and emerging two hour.
Increased 68% to 72 studies Evan as of March 31st Twentytwenty from 22 as of March 31st accounting and team.
This demonstrated our capabilities in Q air incubation and the calculation.
In terms of business cooperation, while we continue to actively pursue acquisition opportunities that fit basing our business strategy. We are also looking forward to to partnering with other market players.
Including.
Establishing a QSR industry font to promote the healthy and rapid development of Inc. of Internet acute our E commerce industry in China.
With our conviction in our business fundamentals.
Long term prospects and the growth strategy, we recently announced share repurchase program of up to 15 million U.S. dollars.
And it also reflects our commitment to increasing shareholder value.
As the into our fiscal year 2021.
China economy has gradually study the recovery impact by improving Covidien 19 houses.
That is takes in China.
From a long term perspective, the co in the 19 pandemic is part two half the consumers translates into a new age of online shopping on.
Accelerators, social media consumption habits, and promote the further development of the E commerce industry.
Being the bridge between mainstream ecommerce and social media platform.
I will hand is well positioned the pie this change.
Unlike other third party independent Assurant media platform, we turn to compete for online traffic with existing social media platforms and E commerce platform, but empower them.
Bob Downpour with Alibaba up a significant strategy stakeholder and long term Cabiness Pandora, we will continue maintaining a close cooperation with them.
In addition, we will continue developing our platform business with people on the BBD, which are also our imports into shareholders and the other social media platforms, such as tick Tock Queso and later read a book to further explore new monetization channels and the business.
With that I'll now turn the call over to Mr. checking Wong CFO of the company, who will provide an update our financial performance for the fourth quarter and for fiscal year Twentytwenty.
Thank you Nielsen and Hello, everyone, we capped off.
For fiscal year 2020.
We managed to achieve our full fiscal year ran entirely national non-GAAP adjusted net loss attributable to higher significantly by 81% ago here.
And generated a positive net cash provided by operating activity.
For the fourth quarter fiscal year 2020.
Also deliver head is actually financial results and a non-GAAP adjusted net loss attributable to.
Narrowed significantly by 45% year.
It's by the impact of the can damage our banking and financial results since January 2020.
Beauty unsuccessful fiscal year 20 Twond.
We are well positioned to achieve profitability for the full fiscal year 2021 on a non-GAAP basis.
Today, I will be presenting some abbreviated financial highlights for our partner and the Opex for year 2020.
We encourage you to raise through our press release issued earlier today for further details.
Now I would like to discuss certain highlights of our financial performance for the fourth quarter ending March March 31st 20 Twond.
Total net revenue was RMB 228 continues a decrease of 4% from R&D 237.3 need for the same quarter of last fiscal year.
Mainly due to the impacts from the coffee 19 pandemic in China as well as the transition of some of the company's unless dollars from the full service model to the performance.
Cemetery revenue through the path on model increased 24% year over year to RMB 60 achieved on to me.
Gross profit.
Increase significantly by 51% year over year to R&D 84.3.
Gross margin increased to 37% from 23% for the same quarter of last fiscal year.
Net loss attributable to have narrowed a 6% year over year to RMB 26.4 million.
Adjusted net loss attributable to.
Narrowed a 45% to RMB 15.4 million.
Now, let's move onto detailed financial performance for the full fiscal year 2020.
Net revenue increased 19% R&D to handed to point binding to RMB 1.3 billion. Despite the impacts of Cofinancing endemic in China during the fourth quarter fiscal year 2020.
The increase in survey is already from the headphone model accounted for 75% of the total net revenue increase.
Randy Pharma services to the pass on model increases significantly by why handed a 1% to RMB three handed us three pointedly.
This increase was mainly attributable to the following vectors.
The increase in the number of Coelce, serving the company platform model, which increased 12% to 137 as of March 31st Twentytwenty.
From 122 as of March 31st on LNG.
Second to include the performance of subscale Els as evidenced by the increase in the aggregate number of that.
Form top tier established and emerging Coelce June 37 as of March 31st 20 funding from 22 as of March 31st 2019. In addition, the average services revenue generating brocail, serving the platform on.
<unk> increased approximately by 39% as compared to the last fiscal year.
And third and increasing in the number of a brand that the company cooperative.
Advertising basis.
735 for the fiscal year 2012.
From by handler seven for the last fiscal year.
Revenue from product sales through the full service model increase of 5% to RMB 992.6 million.
The increase was primarily attributable to the sales growth of the unless dollars.
Opening in the name of the company's top tier two wells.
Partially offset by the transition of the basis model on some online stores opened in the name of the company's emerging and establish cliffs.
From the full service model to the path.
As a result of the transition.
A number of the company's unless those decreased to 19 as of March 31, Twentytwenty from 86 as of March 31, 29 team.
And the number of the company's keel else serving the full service model decreased to three as of March 31, 2020 from 14 as of March 31 29.
Our product sales revenue from the company's on US dollars that we're all badly in the name of the company's top tier coils and awarding operation in both fiscal years increase of 40% compared to the last fiscal year.
Cost of revenue increased 7% to RMB handler fixed on one mean, which was mainly attributable to the increase in the total narrowing.
Cost of revenue primarily include product cost you mentioned write downs and occasional service fee.
Gross profit increased 43% RMB 147.7 million to RMB 489.7.
Gross profit from the headphone model accounted for 61% of the total increase.
Gross margin increased to 38% from 31% for the last fiscal year with gross margin of services, increasing to 57% compared to 55% for the last fiscal year.
Total operating expenses decreased 43% RMB six handed a 7.2 million include data in the total operating expenses.
Was that aggregate of RMB 78, or nine need of non cash amortization span of intangible asset.
In relation to exclusive cooperation right.
Noncash share based compensation expense and the litigation costs for the fiscal year 2020.
Compared to nail for the last fiscal year.
Total net revenue during the fourth quarter fiscal year 2020 was impacted by Cofinancing. They may.
While certain operating expenses were based.
Exclusive.
Of aggregate of RMB, 78, or 9 million noncash charges relate and litigation costs for the fiscal year 2020 as mentioned above total operating expenses accounted for 41% and the 39% of the total net revenue for the fiscal year of 20 Twond.
And a 29 team respectively.
Fulfillment expenses increased 6% to RMB 134.9.
The increase was in line with the increase in product sales.
Exclusive of RMB 1.6 million noncash share based compensation expense in the fiscal year 2020 fulfillment expenses accounted for 13% of product sales revenue during the fiscal years of Twentytwenty ended 2019.
Sales in the marketing expenses increased by 48% to RMB 300, a pipeline to me.
Following the expansion of Caleb all from 128 signed a Helios as of March 31, 2019 to 168 as of March 31, 2020 related expenses volcano, L. incubation cultivation and content production.
And the personnel costs of related support teams to support increased activities for the company SQL sales and net advertising basis increase accordingly.
We are investing for future.
In addition, the year over year increase in sales and marketing expenses will also achievable to the non cash amortization expense of intangible asset.
Of RMB 20.6 million.
And the noncash amortization of share based compensation expense of RMB Tampon to me.
Exclusive of the aggregate of RMB 30.8, Neely non cash amortization expanse of intangible assets and a share based compensation span in the fiscal year 2020.
Sales and marketing expenses accounting for 21% and a 19%.
Total net revenue during the fiscal year of 2020 and 2019, respectively.
General and administrative expenses increased 82% to RMB 167 point Amy.
The increase was primarily driven by the increase share based compensation expense of RMB 43.5.
Professional fees like audit legal fee dental insurance expat and litigation cost of RMB 21, and the bad debt provision of RMB five or aiming.
Exclusive of the aggregate of RMB 46.5 million share based compensation expense and a litigation costs in the fiscal year 2020.
General and administrative expenses accounted for 9% an 8% of the total net revenue during the fiscal years of 2020 and 2019, respectively.
Net loss attributable to hand was RMB 92.5 million inclusive of an aggregate of RMB 78, or nine of non cash amortization expense of intangible asset.
Relation to exclusive option right.
Noncash share based compensation fat and the litigation costs.
Pair to RMB 73.2 million for the last fiscal year.
Adjusted net loss attributable to narrowed significantly by 81% to RMB 13.6 million.
RMB 73.2 million for the last fiscal year as a result of the formally in terms of our balance sheet and the cash flow as on March 30, 120, we had cash cash equivalents restricted cash and short term investment of RMB a hands upon 6 million come.
Paired to RMB 103 point Eightmillion as on March 31, 20 money.
Net cash provided by operating activities.
Be 50.6 mean.
For the fiscal year 20 Twond.
Compared to net cash used in operating activities of R&D nonperforming for the last fiscal year.
Here, one punch to add a regarding the share repurchase repurchase program opportune. It community you ASTORA discussed by medicine.
Previously the company expects to fund the repurchases made under the program from existing cash balance.
Before turning to our outlook I would like to spend a few minutes, providing an update on the covenants and situations.
Just now Nielsen shared some information regarding the impacts of Colby 19 pandemic during the fourth quarter fiscal year 2020.
While the company has seen gradual recovery of overall business, resulting from the improving health statistics in China. Since March 2020, the company still anticipate the net impact of the pandemic to continue into the fiscal year 2021.
But to a lesser extent as compared to the fourth quarter of fiscal year 2020.
However, the duration of and the magnitude of the impacts from the pandemic on the company's basis will be pan numerous evolving textures that cannot be accurately predict K assets, including the duration as scope of the pen Danny.
The negative impact it has and the Chinese and a global economy.
Impacts on the employment and consumer confidence.
The company's ability to successfully navigate the impacts of the pandemic.
As well as actions comments businesses and individuals will take in response to the Pan Danny.
With respect to our ROI.
The company currently is that for the full fiscal year 2021, ending March 31, 20 Twond.
2021.
Net revenue from services through the pack on model to be between RMB 520 million and RMB 600 attending representing a year over year growth between 72% and the one handed a 1% respectively.
And total net revenue to be between RMB, 1320 mean and on be 15 handling representing a year over year growth between 2%, 16% respectively.
They forecast the RAC accompanied with current and preliminary view on the current basis situation and the market conditions, including the Companys current estimate of any impact on the koby 19, pandemic, which are all subject to change.
This concludes our prepared remarks, we'll now open the call Falcon operator. Please go ahead.
Thank you so much ladies and gentlemen, if you wish to ask a question you will need to pass suffer and one on your telephone for the benefit of the participants on today's call. If you wish to ask your question to the company's management in Chinese. Please let me repeat your question Mitch.
Once again, if you wish to ask a question it's.
Unwind.
Right in our first question comes from the line of.
Lean.
Tom as doubly S. Lee your line.
To make money.
Uh huh.
Kelly.
Let me.
Oh, yes, you can see quite appealing anymore.
Well thanks.
It's important for me he shipping.
I Hope you know Eagle eye something thanks, Nicole.
And then the typically a school physical yet so.
Hey, if we can.
We'll go to nature, what type of rebate I decided he should easily.
Yes.
And I repeat my question link.
Hi, good yes on secured multiple mobile is a market in the market, it's like treating <unk> outbound flight maybe.
Let's see so he'll know, okay, hi move resources or no profit pool sometime.
And the height and weight.
And it feels good looking to be pulled them what could be repeated picture.
It's really interesting and without getting into account. Thank you.
This is Jason Thank you and others, who are a good question.
Credit profile and the index.
Let me share some sauce with you about to hand and comps are screaming.
It's true that E com Saar streaming has boosted the domestic economy in China.
Into the to a new hard to a new high level.
Hard to vigorously, but if we carefully analyze the Q E commerce live streaming and the companys behind the such carriers.
We will know statistics, you mentioned that just now like heavy concentration on single or few top tier three hours.
Third party brands in the merchants unprofitable or even damage to branded value if the utilizing comps.
You Commerce Upstreaming.
Et cetera.
As I mentioned the in the prepared remarks.
E Commerce Lau streaming business have been expanding rapidly since the second half of fiscal year 220.
The comps last streaming is not new to hunt as the as Albert you Arrow, how being utilizing the streaming on Cabo platform to introduce I've only met apparel products on them for six model.
At present E Commerce Downstreaming have been extended to two did rack to live streaming views of our or whomever apparel brands and for third party machines and the brands.
[noise] Lau streaming falls to the party brands has become an important the monetization channel onto the platform model for Uh Huh.
The deeper into taps I'll be comps to upstream shelves for example, the regional carriers, who grew up from lab streaming platform.
The two hours to be sands are those who resonated with followers at a deep level and the their endorsement to our products.
Influence follow our spine this isn't.
That's accumulating a large fan base on social media platforms.
After cooperating with third party merchants and Brown our.
Our influential cuverro can directly amplify their business value by leveraging this deeper and intimated connection with that and base.
So the continuous efforts and the exploration he comes now streaming business in the past the for the past two quarters.
He comes Downstreaming has emerged as a important and monetization channel on the performance.
Great today in reaching the T. Rowe monetization channels.
And the better leveraging our precise matching capabilities.
Well, receiving positive feedbacks from merchants and consumers.
The other roads, leveraging our high quality acute our metrics, we have a third party brands to acquire granted premier to avoid any low price promotion and profitability during E com south screening.
And for the top tier two our concentration.
No one has been building up UQM metrics for E com style streaming.
No not solely relying on the specification.
Our Q airs resonates with followers as a deep level and as their endorsement of our products car influenced followers of our indices.
Depending on different vitality, Peter and styles as well as fan base on different to social media platforms.
Few hours of streaming is not necessarily.
Limited to top our platform the could it be carso as well.
The savings streaming to our metrics continues to expand this good performance.
At the top tier two hours that we mentioned about.
They are come from nuclear hours with good operational results.
Including totality Toronto, she made when one.
It's sector.
We will enhance the top strategic cooperation with multiple platforms to exploit E commerce live streaming monetization channels.
Our Q Eris also get involved with them on television channels. Besides live streaming.
Including step operated stores on the positive model online Sharings daus brand advertisement et cetera.
All such demonstrates rule has a strong capabilities to sub Q errors and brands.
In summary, we keep high confidence in the queue our economy in the long wrong.
Due to the epidemic most deals shift from offline to online which greatly benefited the ecommerce sector.
Including the Q Eric economy.
For us onto the full service model, we will continue to utilize top allow streaming to introduce our own apparel products.
Back to where our customers can Directv place order and the completes the purchase.
On the platform model, we will continue to do that our clinical cure metrics.
Both the number of care and for MPC in live streaming we'll continue to expand rapidly.
And for business development, we will continue to setup a unified the BD team to better serve Q arrows and third party merchants.
We expect the service revenue fall from E Commerce, Downstreaming, we account for more significant percentage in the total service revenue.
Thank you.
Thank you so much.
Andy You next question comes from the line.
Hey, some openings.
Your line is now.
Oh, no one is funds.
Yeah, just when she was on when you shop to support new woman.
As you wouldn't see solutions, Oh, so each unintelligible such outsized fourth quarter, the whole now or will go more so you'll see.
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And then translate myself thanks for taking my question.
So first congrats on the booby shows despite a difficult operating environment.
Due to cope with my team. So I have a question about a full service model and then the platform model offers a company had been mentioned the transition from the full service to the platform model and then can you talk about the reason behind the transition and then from two perspectives.
One from the operating data from the financials can you talk about these two models performance in the fiscal year Twentytwenty and then the outlook for 2021, and then which I really cannot pokers. Thank you.
No there isn't much in inventory was oney.
Change Analogize home, you mean like handler Borsa beverage Iraqi crudes from Togo shares from inputs Felicia.
During times of coaching and achieve our media toolset. She dollar you the synergies ranching.
Launch in the change on sponsors hope she and also mean a woman take good flashing citizens.
Thank you visits from me I'll, Let me answer questions of course from business package, and then Jackie will add something from financial results passive.
It is true that if you tack. The previously detailed quarterly result during the past.
For the.
Yes, we have mentioned the transition.
Several times.
Now the business performance and financial result have clearly Ah Ah demonstrated that business transition is a successful.
New Hearses totaled three Inc. has further.
As early Joe's hunting classes courses as the cost of the yields on she she's done two things change Alcoa older shows or Lucius hoping you truck consumption Campbell soup Jos a woman putting in women's is what Holden has a couple in Portugal suit pumping.
Personal tool and the older way to do the the thumping pilotless under that goes into someone that people will say Gee CMP and a yield the oil patch subpoenas body the branch.
Other foods the model that has a one p. business is the region of Uh Huh.
However, you know are starting from our physical year on T. 19, we implemented doesn't matter with the sale of certain brands of cattle products.
The full service model and the transform that business into the platform model and that is a we wouldn't regard opening our lives door for ourselves into basically allow to sell our women's apparel products as the only Oh monetization channel you know okay.
Outcome provides sellers on advertising services for third party right and that much and.
And the services revenue and the platform model.
Generated and the recognized.
Based on that Phil and advertising services provided.
So we'll have become platform focused on the diversified.
So what should the early early inside your chances are going they won't change either social mobile penile most changes Halloween was a real areas looking passenger the wall tile for most of the linker Clearbridge eruption Les you realize your door nomenclature larger the while on the patient should have been the congenital too.
So they can just gene able to geological more sort of course further so they will then yes, a judicial natina you sold your together by the it by the time isn't.
During the past fiscal year Twentytwenty, you know our following the booming off.
Our economy in China.
There are lots of factors that boost our platform business model.
The asset light model, one more third party brands and a much and attractive back how our marketing and advertising one more monetization channel develop to match with various brands and a much higher.
So for the full physical year Twentytwenty, a platform services revenue increased over 100% as compared to the last physical year.
Let's see most of the you'll you'll know while on the last two young Togo Linda.
So this will do physician can live with associations total time into Libya Shandy, Tony will close with Sherwood should absolutely doesn't see mosys Gillette, coupled with the going in her through an elite we woman she will come to pass on a condition.
Well for the onto the full service model, we know noted the cow incubation period.
Much faster than the replication of supply chain and the growth if that limited. In addition, the product category as many limited womens apparel.
And if need high investment you want to enter into.
Other product category.
In addition, the competition.
Of course, I have to point out that the supply chain capabilities and resources, we accumulated in the full service model could provide us with more development possibilities in the future.
Good early news I guess does he is.
Most of the to the proven the important thing you youre paying you punching the so the Chiba once it goes away, let associate general Lumpiness or you further.
As of March 31. Consequently, you know we have successfully completed that business transition upset the online store opened in the name of certain established and emerging out from the food service model to the platform model and the you know platform model is.
Becoming.
The focus of the company's business in the future.
She might you consider gentris you called out there were also can cycle you're watching the for the schedule can go to holder been to share the shareholder goes agenda shuffle, what she said she passionately digital into the Sundance options.
Also the GE further delay on the beach entry door periods of whatever is entirely PNM was the shot certainly other patient trial or Ricci Pina you chance. This is another courses and yields on some yes. The goes real within that will actually senior leaders of it only <unk>.
For our platform model, we'll continue to.
Expand on the large are so our pools incubate or cooperate with more how else being a more flexible and diversifies way.
For the existing find out we will continue to cultivate them to improve their monetization capabilities to serve more third party much and and Brent.
Meanwhile, we'll actively explore and develop more monetization channel like that E. Commerce live streaming which has emerged as a part of the channel and the platform model. We expect the our platform model will further increase the revenue contribution percentage.
Compared to the total net revenue and it has been and we'll continue to be the major gross driver revenue increase and achievement of our profitability during the fiscal year Twentytwenty, while thank you.
Okay. Thank you Ms. phone you know a different Jackie here I want to share some information regarding from the financial result, prospective and maybe you can from that information you might see going okay. The rationale and the financial model you know of the difference you know that.
Those two models you might see why we need to do the transition.
Well first I want to talk about from the revenue perspective as compared to the total net revenue.
You can calculate form of the financial statement that services revenue under the pair phone model accounted for 14 cross and again in fiscal year 2019, and they get crazy to 23% in fiscal year 2020.
And we expect as a percentage will increase a further to around.
40 person in the fiscal year 2021.
Right. It's true that you know the product sales revenue ended the first there was a model it's still a comp for the majority of the total net rent.
But if we look no further from the.
Gross policy.
Prospectively.
As compare to the total gross profit generated gross profit from the Pep on model accounted for 24, plus and in the fiscal year 2019, and an increase to 35% you basically our 2020.
And the we expect to you know the percentage will continue to go up maybe a wrong, 50% in the full fiscal year 2021.
And platform model you know as if the asset light model will now account for the inventory costing if it's a cost of revenue account that you know explains the difference why if you look at the gross profit prospecting the percentage even higher for Paypal model.
And third let's look at the gross margin for the full fiscal year 2020 gross margin of a services revenue was about 57% compared to 32% for product sales and at the full service model.
And.
If we further look at the operating profit E.
I'm talking about the operating coffee not taking into consideration of search and you know have quarter general and administrative expanding that could not be you know allocated to this two models.
For the full fiscal year 2020, the adjusted operating profit of Paul of PEPFAR model.
Accounting of fall you bet, the majority nearly 70% as compared to the total adjusted operating profit and.
And we expect the percentage will further go up in the future.
There Paul you know from the financial result, let's I share just now for dividing into north to South model Underperform model, we can't see clearly that.
Net that it really necessary.
You know to do the transition and the we expect that apparel model will play an even more important role in the future development.
Thank you.
Thank you.
Thank you so much.
Your next question comes from the line Vicki from Citi.
Lines now.
So.
Oh you just.
Well I mean.
Are you.
No.
You saw the more.
So.
Yeah.
He.
Even the man.
Speaking.
[laughter] physical since the one side.
Hi.
Oh, well that's now.
Thank you.
Oh, thank you.
Now let me take it the question and the for the full fiscal year 2021, our revenue guidance and you know I I want to separate them into two parts.
For US you know net revenue for our services through the press on model to be between RMB 520 million and RMB 610 million.
Representing a year over year growth between 72% to end the 100, a 1% respectively.
It's a comfortable or wrong, you know I'm asking 40, 40% of the total expected total net revenue.
We will prepare the forecasts all you know the outlook right. The guidance, we consider the following drivers behind the growth for the for the path on model.
First we we consider the number of kill else serving the comprehensive platform model.
And we expect cater to increase from a wrong 130 SL from March 31, 2022 over to overall to handle at over 210, which represent.
Of growth the by over 50%.
To compare I, you basically our 20, Twond tea and eight increase and talking about the number of Coelce increase at 12% to 137 as of March 31, 2020 from 122 as of March 31, 2019 image.
And so you know in the next year based on our the planned for the company to you know some mall Helios, we expect to will you know try to some more in a molecule Wales.
And the second a we can we consider the improve the performance all you know such killer whales as evidenced by the increase in the aggregate number off the platform top tier establish an emerging kill else.
Look has a history right. It increased to 37 as of March 30, 121, 22, SM as of March 31, 2019, and we expect.
The number two you increase a further by a wrong 50%.
And third we also consider or you know the the increase in the number of the brand.
With which the company cooperate head.
If advertising basis.
Other monetization channels.
And even talking about the advertising basic.
And at the increased to 730 buying for the fiscal year 20, Twond. He from of by hand July seven for the fiscal year.
2019.
We expect a number of brand the to increase over 50% in fiscal year 2021.
In addition, the merchants that the company servers, you know us through online sharing Stonewall Yeah. It's also are expected to to be diebold.
By analyzing the number of brand and the margins that we expect to serve we also look at the growth by different monetization channels.
Like the online sharing stall and the E Commerce Lightings gene.
Live streaming.
Which are expected to increase significantly during the full fiscal year 2021.
Second you know just I mentioned, though the platform model, but talk about Oh, the full service model the product sales.
Through the Bruce's model.
If you look at a number of for basically our 2021 indicates a decline in full fiscal year 2021 as compared to 2020.
Mainly due to the following assumptions.
One we consider a you know I'm.
The transition.
You bet just now you know we work for another question, we answer that up we talk about that transition and we have completed the transition as on March 31, 2020, and the we you know rouhandeh has transforming into a platform company.
And that the number of the company serving one key if a decrease of two fold from 14 to three as of March 31, 2020, and the on US dollars decrease decreased to 56 from nine from 19.
Decreased to 19 from I think over 50 as on March 31.
The 90.
So that's one really a spectator.
The increase the percentage if you calculate.
The basically our 2021 as compared to 2020.
And second reason that the impact of Koby 19, right. We also mention to you know we expected to be ongoing a factor into fiscal year 2021, but to a lesser extent as compared to the fourth.
For your 2020.
I also want to add the you know additional information here. We are following the success both basis transition ability on the successful fiscal year 2020, we Oh, we are well positioned to achieve a profit Billy T for the full fiscal year 2020.
One on non-GAAP basis.
Thank you.
Thank you. Thank you so much and your next question comes from the line up to you you back to realize cells.
Okay. Thanks Medicine for taking my question actually I only have one follow up question about the Lightstream E Commerce model.
I was wondering what it does obviously between new had entail L and how much revenue since our last from me model in the fourth quarter.
And how should we think about the future trends in next few quarters.
I think oh.
I would say why isn't there George well, there's or what's the show it got a follow up questions, which is why you name. It didn't sound supported class so maintenance, yes, she's as Im sure well then kill outside your control essentially back actually yeah Hello.
I think I will try to either socialites enjoyed all actually model.
As you can you do that Jay God Bless you should just yet.
[noise] or something in the Eagle than she is the ER.
Maybe looking for me also foothold on until after the cylindrical the how bottled water for licensing.
The woman like the said how about what does become a little more such I mean ping lifestyle.
Theyll come up and happens and by the somebody.
By large losses.
Well no. There's so little concerned Douglas is the us without us oldroyd shovels her way to go up on the okay.
Thank you Centerville question Huh.
Well you know a different platform different ecommerce platform might have different policies regarding the ecommerce live streaming so let us take a top all upstreaming platform. I think example, you know our top all upstream and platform is the largest you comment last let streaming platform in China.
For the total amount paid by brand or margins you know taobao ER platform, we will take approximately 20% to 30% at their feet and for us for real time, we look at about 20% to 35% as our field. So I'll kill asked will take the remaining.
Well no.
Hi, Daniel.
Yeah, social support for the portions of the judging by the us.
Oh use Honeywell, Minnesota room here for your stuff. She says something we can put and call for the revenue generated from bloodstream accounted for nearly 20% of total services revenue under our platform model off of Q4 physical year time to time.
Yes.
On the young physical year 2021, you know the revenue from ecommerce lot premium is expected to increase significantly.
And we anticipate that advantage.
As compared to the total platform revenue will also increase quarter. Thank you.
Yes.
Yes.
Thank you so much.
[noise] and your next question comes up.
Oh.
It seems like three is as <unk> for an operator.
Hello, operator is there any weather patterns.
Yes, we've got one from regularly.
Oh Red Green you meet star in one again please.
If you wish to ask the question.
Again, it's star in one if you wish to ask a question Oh, it seems that he already dropped his line.
Speakers you may continue I find it back.
Thank you.
Oh, My God Gregory underlying.
Gregory Chow your line is now or.
I'm, sorry, I can't there were some technical issue or quantify how it's usually it usually when the tier may go, which I'm not going to California, Google can be difficult liquidity Crunch a region.
What you touched on the R&D spend all her name for Pandora, our total situation, we don't and particular trouble here with the corners you know.
But you know condition in particular from your hurt your children or the three sounds you leisure time, you said there were concerns John.
Sure, Chris will more shares or from a GP or you are able to get on to temper pullback on them.
This will continue to check with Jingdong computer to Oh promotions isn't beyond that I was hoping Mitchell I cannot or should we kind of what you heard the sun John apartment in fact, new leader furniture to call time into Denver or to go for before I'm sure you kind of cannibalization she called articulate Fincham TV.
Sure, Yes, how that translates the we know tease out in the past quarter.
The leading our you comments that sounds like you got any buyback treaty PGT or emphasized the importance of large streaming services Ali earnings call and they're also expressed as you're starting cash into expanded services center improve.
Good morning obligation. So just wanted to understand how does your comment to co-operative our relationship or with a three ecommerce companies all right and if you're on a different either cooperation.
Well matched with a summary companies and what kind of Snappers or have you seen that's the platforms are already made.
The increase beer morning penetration or we go on thank you.
So there was a booming well less and less on each other so he was on so many there's a little numbers with the assumption has who knows who the path.
Yes, it all in all in your sell yourself, the whole military food of him, but shouldn't her whether he triangle.
Be already enjoying in tough when she's opens the door to yourself well I will now with so she comes out with redemption through them.
Thank you I I'm from in let me try to answer questions first I want to point out and I suppose size that we are not serving the ecommerce platform, but what we are certainly brent or much of a accumulated number of brands that are we have cooperative the rate increased to 1035 as.
As of March 31, our Twentytwenty are from 632 as of March 30, 119 had increased more than 60% year over year. So we will continue to increase the number of grant that we will be a cooperative it.
Due until it is somewhat on the beep some high dollar in Sheila one hole for what are you seeing it will you take another wahoo classified loan and lease.
Absolutely when they too though that the assumption has led to a docking oh, you're going to do that is something that bulk water galanski, though the audio and overcome neutral.
Well not pushing you're looking hard things and build up sometimes a woman. So it is something that's under sort of abandon go okay in assumption tied shuffle and she goes it turns out from the daughter.
You know <unk> is benefited by our focus more advantage or we are the leading ecommerce care I'll kill out into base and a continuation of transaction platform in China. So leveraging on the our strong killing two basins have you based on the service capabilities rather breach.
Featuring a major E commerce platforms, including Alibaba J.D. and the P D or that you just mentioned about and the other social media platforms and as the and you know strategic partner to E Commerce platform in China, we can empower.
Oh, Thats, our ecommerce platform.
Oh it easily when they say that is something I mean, he central when they when southern living so that by the Lucentis.
Told us with is that this was so that was a one basically.
It's a rule how you could go through consolidation something.
Added by by the largest ecommerce platform in China accounted for about a 60% of total ally ecommerce market share or you know addition, we all know it is our platform with mature or ecommerce infrastructure construction currently rawhide cooperation.
Oh widely I've been Alibaba yacht business.
Hi, audio so to a vocally searches on Francis easily you will not uncomfortable with as you know a home Kosovo for the Timonium, who shows also European or the pumping will change with LG is only in Utah see most of the Jim who pass them by the so to answer the other people doesn't mean that them who she shows.
And for the for our business cooperation with Alibaba. If you look at our first of its model through Beach I always tell our own brands women's apparel products in the online stores opened in the idea about platform, including both how about on the t. more or so.
100% out our product sales are completed.
Ah Ali Baba ups at four.
In the U.S, I mean, who hadn't thought of developing hinchey, though a others will tell you that she's wonderful Golar igloo media consumption class transaction going shows of would have been dimple chintan, who the pension she though those at home goods Hoboken highlights the she hasn't changed at all since the total you go swap them because of the Chilean pool.
Woman sensibly, though the door does some thunder time, he told me that input or change in India and south of the Chicago the beautiful that should all your commercial pina yield patterns are so the so.
Well I put the booty since the who quadrupled the there's or whatever you work also the two eating has a P value.
What was it goes to the thing has it been how you'll know that GE Fuji cohorts or whatever the eagle lots of other place on club. She goes into local subpoena you sense on the other patients with up to will therefore, cabo that working that isn't as you say, though.
For our platform model, even though we have extensive cooperation with alibaba through various might that vision channels like.
Like the two onto the operated on store or online Sharon's doors are kind of the old of such services revenue generated through the.
The Alibaba platform.
So were thrown on sharing stores opened in the name of the company. So al we connect consumers with production from from multiple our third party merchant of Brad.
You know same online store, where margins are responsible for the you know order fulfillment and the after so services for their perspective products sold.
This accounts for nearly a 20% of our total services revenue and as a platform model.
You know decent or after you mentioned a booming economy E commerce a lot streaming here in China is play you know one more importantly, though in both our most of its model and that the vessel model and it has emerged as an important monetization panel I you know pop all of streaming platform.
Also accounted for the majority of our ecommerce live streaming revenue.
So we like you didn't she's your father like Huh.
Yeah. This is all hunter, it's only other schedule that the assumption that does is it she that is something that the hinchey people. The search out let it seemed that gives us we've seen that century.
Well no highway Youre analogy for use she'd happens Hudson Johnson.
In the future, we would expect Alibaba continue to be the most important ecommerce platform here in China. However.
Following the emergent developments of other ecommerce platforms and the enhancing our ecommerce a function of sort of certain social media platforms.
There are a good opportunities are great opportunities for route to cook to cooperate with often.
The way.
Gee, that's Oh, we have about all the solution, though session the email and hi, John tissue passage immediate use as well.
Furthermore, you know our we need to mention that Oh, Dibaba is our significant strategic stake holder and a long term keep it is partner so in the new year in the new physical your 20 times, one we'll continue to.
Tomato close business cooperation with Alibaba.
Kingdom Kintyre will not create hugel, one hotel Saddam 80 to see Luna Tadashi looking huh.
First of all of her show up into the country.
And the for the trade deep platform, you know Lou I also need to Iraq, our fill out private traffic from their social media platforms to trade D. E. Commerce platform. This is potential that potential corporation.
Possibility or Tom between us.
Kindled auto is shaking the shuttle bus and other things dumping huh.
You want wholesale for the whole and the Joshing translating the books that doesn't physicals, well for the civil owner and especially the last year.
Well I use deputise anything here, we share the total honed yet, but what would that pool.
So what you'll you'll have the going with the assumption has trees that couldn't brought in 17.
Oh, sorry. This is how the cotwo Pete argument that I can do a shuttle service industries.
You know P.D. is an emerging ecommerce platform read anything from the lower tier cities and the market, which doesn't match with our tail al and I'll kill Ehealth self oil Talcott has terrific I used on way.
But along with the continued diversification of our parallel, especially the self mrna chill out while the third party till now we do expect a there is a limited cooperation room between us.
Including the including E commerce loves streaming business.
Besides as Lou is deeply rooted in the E commerce platform and the more and more E commerce platform for them to explore lower tier market here in China. You know, it's we have certainly bring us more and more demand from such lowest here sitting at a lower tier market. Thank you.
Yes.
Operator.
Thank you so much.
As there are no further questions now I'd like to trying to call back over to the company for closing remarks.
Thank you operator, thank you once again for joining us today, everyone. If you have any for the question. Please feel free to contact to have Investor Relations Department through the contact information provided on our website or through our Companys <unk> agency TPG. Thank you everyone. Thank you.
This concludes this conference call. Thank you you mean.
[music].
[music].
[music].
Hello, Ladies and gentlemen, thank you for Sun life for Ron Holdings Limited earnings conference call for the fourth quarter.
Fiscal year Trident trending at this time, all bunch over into listen only mode. Today's conference call is being recorded I will now turn to call over to your host Mr., turning some senior director of <unk>. Please go ahead.
Thank you. Thank you.
Good morning, Hello, everyone and welcome to our Holdings earnings Conference call for the fourth quarter on the pool physical Ya Twentytwenty.
As a reminder, this conference that you don't recording.
The Companys financial and operating results, what do you feel with your press release, our yesterday Oh, They live online.
You can download earnings press release on the file a complete email distribution date by visiting the section of the company's website <unk> Dot dot.
Uh huh.
I mean, they serve our founder direct on the deal on the mute check you want our capital will be given some prepared remarks.
Following the prepared remarks made meaningful our founder chairman of the board of Directors will also join us for the company fashion.
Before we continue please know that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U.S. Private Securities Litigation Reform Act up 1995.
Forward looking statements involve you how does it really doesn't do at such a copy of actual results may be materially different from the view expressed today.
Well the information regarding these and other reason I put into it included.
<unk> filings the company with that with a U.S. they could get exchange Commission, including an annual report on form 10 cap.
The company doesn't appeal and obligation to update any forward looking statements, except as required by law.
Please also note that the company earnings press release, and they've conference call include discussions all audit cap financial information has gone well did get non-GAAP financial matters.
The company. The press release contains a reconciliation of the UN audited non-GAAP my that to the audited most directly comparable GAAP matter.
Now I will turn to go over to has found that the rock Dynasil laser myth Sune. Please go ahead.
Oh, Thank you starting.
Everyone. Thank you for joining our earnings conference call for the fourth quarter and the full fiscal year Twentytwenty.
We finished a backpack fiscal year, two btwenty will strong overall operational and financial performance.
Despite the impact of Alcobra 19 endemic in China during the fourth quarter.
Historically lower to the low cost or for our business.
At the same time, we continue improving operational efficiency and profitability.
Providing authority the foundation for our long term sustainable growth.
For the full fiscal year Twentytwenty.
Total net revenue recorded RMB one point this rate median outreach so its revenue onto the platform model reached RMB three handled on the three meaning we the year over year increase of over 100%.
We achieved our revenue takita for the fiscal year, Twentytwenty and that the they BARDA satisfactory full year results for the first complete fiscal year following our IPO in April 2019th.
In January Twentytwenty fixing the external challenges caused by the quota 19 outbreak our and the so 12 hours to the potty marching and the Brad prototype to manufacturing logistics and fulfillment.
Of course, they affect either due to that risk travel restrictions.
The crane team madness imposed in China.
We implemented the various response that in a timely manner to mitigate the impact on overall band there.
On the prime as a means to bring the 50 under the house of all employees.
We have gradually redeemed operation it made the February according to the requirements of local comment.
The overall impact and the interruption operation has being managed it to the minimum level.
And the in fact, our supply chain under logistics, how being gradually recovering to normal level. This much.
Through our efforts we are pleased to to cap off the full fiscal year, two new 20 with outstanding without.
Looking back over the past year, we maintained a rapid growth momentum across our core business that.
For the full fiscal year 220, total G.M., we increased 41% and the total net revenue increased 19%.
Our year over year basis.
Which is a service revenue on the pipe on model increased over 100% year over year.
Well the Doctor the net loss attributable to Han narrow the by 81%.
We also achieved with the politics net cash provided by operating activities.
Robert The performance is a testament to the staff and the liability of our business model and our strong execution capabilities.
Benefit to the by our first mover advantage, we continue to furthering our exploration and solidifying our leading position in China up Internet acute our ecommerce sector.
The continue expansion of our platform business and the further exploration overtime work monetization candles onto our platform model.
Tenure to be creates coke gross driver in the past few quarters as well as I'm talking to patch, all but long term cost strategy.
The online sharing star business that initiative in the third quarter, our fiscal year 2019 continue the expanding it in fiscal year Twentytwenty.
With revenue generated from the online sharing increasing nearly 700% year over year.
Revenue again the rates either from the all nice share installed as a percentage of total service revenue under the patent model grew to nearly 20% in the full fiscal year Twentytwenty from single take to feature in the fiscal year 2019.
At the theme Tom we continue the tech appetite birth caps of all my share start for more and more internally in compared to the two hours with accidental marketing skills.
Through our QF distinct the personal style and a large follow RMBS.
As I appreciate matching capabilities.
Okay activity rack mounted verisk tapped out what sort of party marching merchant products.
With high quality to dive back on to customers.
Acting on the converting traffic from major social media platform, and effectively achieving traffic and accounting to monetization.
That does without the enhancer retention and the conversion efficiency all but they are wide range also have.
Significantly improved with the stock repurchase Reid.
At the end of fiscal year, Twentytwenty sharing star Bailey habits successfully operated for more than 12 month and have it continuously achieved the accident operating performance, which will also be Wow main growth driver in the last fiscal year.
In addition, our E commerce cloud streaming business grew rapidly in the second half of fiscal year 2020 E Commerce cloud streaming as Nick is not new too hot as our Q arrowhead being because I think the allow streaming to introduce our oil apparel product on the our phone so with more.
Yeah.
At present ecommerce allow streaming how being extended the to direct loud streaming field of our.
Oh intimate apparel brands and Foster party Martina and Brad.
The Q out with the and are those who doesn't need to be the followers at a deep libel and they are in document our product.
Input follow us buying decision.
Accumulating a large campaign.
In social media platform.
After cooperating with third party merchant and Brad our influential Coelce can rapidly amplifiers that Ben its value by leveraging this deeper and intimate connection with their fan base.
So we're not continuous efforts and the exploration ecommerce labs premium business in the past or two quarters.
He comes now streaming has emerged as an important the monetization channel onto the platform model.
Great today, reaching that you are monetization channels and the and the better leveraging our pre sac matching capabilities.
Our ecommerce Lau streaming business has the verdict with or without since the third quarter fiscal year Twentytwenty.
Generating approximately 20% of the total service revenue on the platform model.
While receiving positive positive feedback from merchants and the consumer.
Leveraging all the main competitive advantage of acute our incubation.
Our Q era has a large number of a high quality fast with a strong stickiness on different petromedia platforms.
You have converted to.
Consumer us all Bob.
Karma clouds premium business.
With very good convention without.
This allowed us to minimize and the extra resource allocation required to from the company in a way.
In the future, we will cooperate with more social media platform with E Commerce cloud screaming functions. In addition to top all I would streaming platform.
To further enhance Qs monetization capabilities.
Through the E Commerce cloud streaming which has emerged as an important that monetization channel for our two hours.
Our leading to our incubation and transaction platform has also become the cooperation platform for emerging fashion brands in China.
Brad now not only M to increase the sales, but also need us to empower their overall marketing program to resign brand and to improve efficiency.
As of March 31st Twentytwenty.
We had to partner with a total of 1035 brands in our other word having service.
Representing.
64% growth.
600, and desperate to Brad as of March 31st 2019.
Our efforts have begun to bear fruit reflected the impact to your feedback we have received from to the party marching and brand.
As well as more potential collaboration opportunities that have surface, though from advertising agencies and brands.
Including domestic brands and international bound on brands.
All of these achievements have enabled us to farm or completed the brand the metrics that macabre multiple areas.
We will continue growing the advertising business and look forward to collaborating out of serving more brands, both domestically and globally.
Our enrich and the diverse Q our pro is viewed by our strong capabilities in Q erring cultivation and development and flexible cooperation models with Carolyn.
As of March 30, Onest Twentytwenty. The total number of Q hours found the buy out through long term agreements reached 168.
On aggregate to number of fan of over two hands were and the six meeting a year over year growth, our 31% and the phase 3%.
Respectively, which are major social media assets.
Some of our annuity than Q hours, we amended the folks and averaging that strong marketing capabilities are.
Our iconic social media platforms, such as tick Tock queso little read a book and the BBB.
As they already have office depot, and large campaign that drive the extensive online traffic.
Further our Qs influence on this platform will be further elevated Alberta, our comprehensive training.
That their marketing capabilities will be further enhanced.
In addition, Mandalay social media platform have launched the twos too happy user skin followers, which are beneficial for Q, our performs like through high.
Enabling us to incubate across and half of them go without them based in the more systematic and efficient debate.
Furthermore, I would also like to discuss some additional information regarding our platform Q over Q classification.
As an additional matter too thats our platform Qs performance.
We classify our platform Cuverro based on the total service revenue generated by the QSR onto the platform model.
During the previous Paramount.
Our platform top tier two hour increased from one at on March 31st 2019 to eight as of March 31st to Twentytwenty.
The number of our platform top tier established and emerging two hour.
Increased to 6% to 8% to 72 study fab.
As of March 31st to 2020 from 22 as of March 31st are touching on team.
This demonstrated our capabilities in QSR incubation and the contribution.
In terms our business cooperation while we continue to actively pursue acquisition opportunities that fit basing our business strategy. We are also looking forward to to partnering with other market players.
Including.
Establishing a Q our industry font to promote the healthy and the rapid development of Inc. of Internet acute our E commerce industry in China.
With our conviction in our business fundamentals long term prospects and the growth strategy, We recently announced share repurchase program of up to 15 million in us dollars.
And it's also reflects our commitment to increasing shareholder value.
As the into our fiscal year 2021.
And as the economy has gradually started recovering backed by improving quality 19 houses.
That is takes in China.
From a long term perspective, the code. The 19 pandemic is part two half of consumers translates into a new age of online shopping.
Accelerator, social media consumption habits, and promote the further developments of the E commerce industry.
Being the bridge between mainstream E Commerce, and social media platform.
Hi, it's well positioned the pie this change.
Unlike other third party independent Assurant media platform, we turn to compete for online traffic with existing social media platforms, and the ecommerce platform, but to empower them.
Downpour with Alibaba Arbor significant strategy stakeholder and long term Cabiness Pandora, we will continue maintaining a close cooperation with them.
In addition, we will continue developing our platform business with people on the BBD, which are also are important to shareholders and the other social media platforms, such as tick Tock Queso and later read a book to further explore new monetization channels and the business.
With that I'll now turn the call over to Mr. Decadelong CFO for the company, who will provide an update or other financial performance for the fourth quarter and full fiscal year 2020.
Thank you Manson and handle everyone. We capped off set for fiscal year 2020, New age we managed to achieve our full fiscal year random timing national non-GAAP adjusted net loss attributable to.
Significantly by 81% anecdote.
And the generated a positive net cash provided by operating activity.
For the fourth quarter fiscal year 2020.
We also deliver has actually financial Rita and a non-GAAP adjusted net loss attributable to.
Narrowed significantly by 45%.
It's by the impacts of the pandemic, our banking and financial results.
January 20 Twond.
Beauty unsuccessful fiscal year 2012.
We are well positioned to achieve profitability for the full fiscal year 2021 on a non-GAAP basis.
Today, I will be presenting some abbreviated financial highlights for our partner and a full fiscal year 2020.
We encourage you to raise through our press release issued earlier today for further details.
Now I would like to discuss certain highlights of our financial performance for the fourth quarter ending March March 30 Forever 21.
Total net revenue was R&D to handle the 28 unseen a decrease of 4% from R&D to handle that 37 point threemillion for the same quarter over last fiscal year.
Mainly due to the impact from the Colby 19 pandemic in China.
Well after taxation of some of the company's unless dollars from the full service model to the performance.
Some of hitting revenue through the path on model increased 24% year over year to RMB 62.2 million.
Gross profit increase significantly by 51% year over year to R&D 84 point Threemillion.
Gross margin increased to 37% from 23% for that in order of last fiscal year.
Net loss attributable to narrow the 6% year over year to RMB 26.4 million.
And adjusted net loss attributable to.
Narrowed a 45% to RMB 15 point forming.
Now, let's move onto detailed financial performance for the full fiscal year 2001.
Net revenue increased 19% RMB 202 point binding to RMB 1.3 billion. Despite the impact of a covenant in pandemic in China during the fourth quarter of basically our 2020.
The increase in service revenue from the cap on model accounted for 75% of the total net revenue increase.
Revenue from a services to the path on model increase significantly by 100, a 1% to RMB three handed a three point to me.
This increase was mainly attributable to the following better.
The increase in the number of kill Ellis, serving the company platform model.
League increase tell by 10 to 137 as of March 31st 20 Twond.
From 122 as of March 30, plus 20 LNG.
Second to include a proponent of subscale Ellis as evidenced by the increase in the aggregate number of that.
Form top tier established and emerging kill else June 37 as of March 31st 20 funding from 22 as of March 31st 2090.
Nation, the average services revenue generating brocail, serving the path for model includes approximately by 39% as compared to the last fiscal year.
And third and increasing the number of a brand that the company cooperative.
Advertising basis.
730 vying for the fiscal year 2012.
By handler seven for the last fiscal year.
Revenue from product sales through the full service model increase of 5% to RMB 992.6 million.
The increase was primarily attributable to the sales growth of the unless dollars.
Opened in the name of the company's top tier Julien.
Partially offset by the transition of the basis model or some unless doors opened in the name of the company's emerging and established himself from the full service model to the path.
As a result of the transition.
A number of the company's unless dots decreased to 19 as of March 31, 20 Twond.
From 86 as of March 31, 29 team.
And the number of the company's keel else serving the full service model decreased to three as of March 31, 2020 from 14 as of March 31, 20 Nancy.
Our product sales revenue from the company's on US dollars that we're all that link in the name of the company's top tier healios and awarding operation in both fiscal years increase of 40% compared to the last fiscal year.
Copper ending increased 7% to RMB handler fixed on one.
Which was mainly attributable to the increase in the total narrowing.
Cost of revenue primarily include product cost you mentioned write downs and the cable assemblies.
Gross profit increased 43% RMB 147.7, meaning to RMB 489.7.
Gross profit from the headphone model accounted for 61% of that total increase.
Gross margin increased to 38% from 31% for the last fiscal year with the gross margin of services, increasing to 57% compared to 55% for the last fiscal year.
Total operating expenses increased 43% to RMB 607, continuing including in the total operating expenses.
Was that aggregate of RMB 78, or nine mean of non cash amortization span of intangible asset.
In relation to exclusive cooperation right.
Noncash share based compensation expense and the litigation costs for the fiscal year 2020.
Compared to nail pardon last fiscal year.
Total net revenue during the fourth quarter fiscal year 2020 was impacted by Cofinancing. They may.
While certain operating expenses or fixed.
Exclusive.
Of aggregate of RMB, 78, or 9 million lung cancer charging delayed and litigation costs for the fiscal year 2020 as mentioned above total operating expenses accounted for 41% and the 39% of the total net revenue for the fiscal year of 20 Twond.
And at 2019, respectively.
Fulfillment expanding increased 6% to RMB 134.9.
The increase was in line with the increase in product sales.
Exclusive of RMB 1.6 million noncash share based compensation expense in the fiscal year 2020 fulfillment expenses accounted for 13% of product sales revenue during the fiscal years of 2020 and at 2019.
Sales in the marketing expenses increased by 48% to RMB 305.2 million.
Following the expansion of Caleb all from 128 sign Helios as of March 31, 2019 to 168 as of March 31, 2020 related expenses volcano, Alec intubation cultivation and content production.
And the personnel costs of a related support teams to support increased activities for the Compressco Ela sales and net advertising basis increase accordingly.
We are investing for future.
In addition, the year over year increases in sales and marketing expense will also achievable to the non cash amortization expense of intangible asset.
Of RMB 20.6 million.
And the noncash amortization of share based compensation expense of RMB Tampon to me.
Exclusive of the aggregate of RMB 30.8 million non cash amortization expat of intangible asset and a share based compensation is back in the basically our 2020.
Sales and marketing expenses accounted for 21% and a 19%.
Total net revenue during the fiscal year of 2020 and in 2019, respectively.
General and administrative expenses increased 82% to RMB 167 point Amy.
The increase was primarily driven by the increased share based compensation expense of RMB 43.5.
Professional fees like audit be legal fee dental insurance expat and litigation cost of RMB 21, and the bad debt provision of RMB five or Amy.
Crusade of the aggregate of RMB 46.5 million share based compensation expense and an education costs in the fiscal year 2020.
General and administrative expenses accounted for 9%, 8% of the total narrowbanding during the fiscal years of 2020 and 2019, respectively.
Net loss attributable to hand was RMB 92 point binding inclusive of an aggregate of RMB 78, or nine of non cash amortization expense of intangible asset in relation to exclusive coverage and right.
Noncash share based compensation fat and the litigation costs come pair to RMB 73.2 million for the last fiscal year.
Adjusted net loss attributable to narrow that significantly by 81% to RMB 13.6 million from RMB 73.2 million for the last fiscal year as a result of the formally in terms of our balance sheet and the cash flow.
So on March 31 on funding, we had cash cash equivalents restricted cash no short term investment of RMB eight handled by 6 million compared to RMB 103 point Eightmillion as on March 31 20.
Net cash provided by operating activities was RMB 50.6 million.
For the basically our 20 twond compared to net cash used in operating activities of R&D nonperforming for the last basically.
Here, one wants to add a regarding the share repurchase repurchase program opportune 50 million starting staff by medicine.
Previously the company expects to bond repurchases made under the program from existing cash balance.
Before turning to our outlook I would like to spend a few minutes, providing an update on the cofinancing situations.
Just now Nielsen share some information regarding the impacts of Colby Nanjing pandemic during the fourth quarter fiscal year 2020.
While the company has seen gradual recovery of the overall business, resulting from the including power statistics in China. Since March 2020, the company still anticipate the net impact of the pandemic to continue into the fiscal year 2021.
But to a lesser extent as compared to the fourth quarter of fiscal year 2020.
However, the duration of and the Mega nature of the impacts from the pandemic on the Companys basis will be pan and numerous involving factors that cannot be accurately predict K assets, including the duration as scope of the pen Danny.
The negative impact it has on the Chinese and a global economy.
Impacts on the employment and consumer confidence.
The company's ability to successfully navigated the impacts of the pandemic.
As well as actions comments businesses and individuals will take in response to the pen Danny.
With respect to our ROI.
The company currently is that for the full fiscal year 2021, ending March 31, 20 Twond.
[music].
2021.
Narrowbanding from services through the platform model to be between RMB 520 million and RMB six hedge attending representing a year over year growth between 72% and a 100 of 1% respectively.
And total net revenue to be between RMB 1003, hedge accounting and on be 15, Tangerine, representing a year over year growth between 2%, 16% respectively.
All.
Correct the comprise current and preliminary view on the current basis situation and the market conditions, including the Companys current estimate of any impact on the Colby 19, pandemic, which are subject to change.
This conclude our prepared remarks, we'll now open the call Falcon operator. Please go ahead.
Thank you so much ladies and gentlemen, if you wish to ask a question you will need to past summer and one on your telephone.
The benefit of the participants on todays call. If you wish to ask your question to the company's management in Chinese. Please make me repeat your question in English once again, if you wish to ask a question.
Our unwind.
Right.
Our first question comes from the line of.
Lean.
Tom as double yes, Lee your line is now open.
Correct.
Uh huh.
Thank you Kelly.
No.
Net income or ship our.
Thanks.
It's important for more easily hibbing input hope uphill Eagle eye something thank God.
And then look if you think.
School to ship.
Hi, Thanks.
Eagleton nature potential.
He should easily ticket only.
I would keep my question Linda.
Hi, Good Francisco marketing model at the market.
Markets like treating well.
Maybe.
Problem Machetes appeal occupied move resources or no profit for some time.
Hi can wait.
Good.
Well, what could the pizza picture like Threed industry and wouldn't hesitate to call. Thank you.
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This is Jason Thank you Anders Oracle catching.
Credit profile and the in depth.
Let me share some thoughts with you about two hands and comps are screaming.
It's true that E com Saar streaming has boosted the domestic currently in China.
In the to a new hard to a new high level.
Vigorously, but we carefully analyzed acute ecommerce live streaming and the companys behind the such Karen.
We will not statistically you mentioned that just now like.
Heavy concentration single our view top tier cares.
Third party brand in the marching unprofitable or even damage to brand value if the utilizing comps.
E Commerce, Upstreaming et cetera.
As I mentioned the in the prepared remarks.
Tom flowers premium business have been expanding rapidly since the second half of fiscal year 220.
Im comps last streaming is not new to hand.
Our Q arrow, how being because I think the streaming on top our platform to introduce our oil Houma apparel products are now for six model.
At present E Commerce Upstreaming have been extended the to the rack to live streaming deals of our oil rumor apparel brands and Foster party machines and the brand.
Thanks.
Now streaming forces party brands has become an important the monetization channel onto the platform model for 200.
The deeper into taps I'll be comps to upstream shares for example, the regional carriers, who grew up from large streaming platform.
Q our service that are those who resonates with the followers at a deep level and their endorsement to our product can influence follow our spine disciplined.
That's accumulating a large fan base on social media platform.
After cooperating with third party merchants and Brown our.
Our influential cuverro can rapidly amplifies the business value by leveraging this deeper and.
Intimated connection with database.
The continuous efforts and the exploration E commerce cloud streaming business in the past a for a cost two quarters.
E Com style streaming has emerged as are important and monetization channel on the platform model.
Today in reaching the two Oman solution channels.
And better leveraging our pre sac matching capabilities.
Well received positive feedback from merchants and consumers.
The other roads, leveraging our high quality acute our metrics, we have a third party brands to acquire granted premier to avoid any low price promotion and.
Profitability during E com south screening.
And for the top tier two AERC concentration.
No one has been building up UQM metrics for E com style screening.
Well not solely relying on the specification.
Our Q errors resonates with followers as a deep level and is there endorsements our products car influenced followers of our indices.
Depending on different vitality, Peter and styles.
As well as fan base on different the social media platforms.
Q, our last streaming is not necessarily.
The material to top our platform the could be on parcel as well.
The savings streaming to our metrics continues to expand this good performance.
At the top tier two hours that we mentioned about.
They are come from nuclear hours with good operational results.
Routing totality Tara she may and when one.
It's sector.
We'll handheld setup strategic cooperation with multiple platforms to explore E commerce live streaming monetization channels.
Our Q Arris also get involved with ads the monetization channels Besides live streaming.
Including SAP operated stores on the positive model online sharing store brand added with had mentioned et cetera.
All such Chemistries has a strong capabilities to sub Q hours and brands.
In summary, we keep high confidence in the queue our economy in the long wrong.
To the epidemic most deals shift from offline to online, which greatly benefited the E commerce sector.
Including the Q Aerie economy.
For us on the full service model, we will continue to utilize top all our streaming to introduce our own the apparel products.
Back where customers can Directv place order and the completes the purchase.
On the platform model, we will continue to do that our clinical cure metrics.
Both the number up here and for MPC in live streaming we'll continue to expand rapidly.
And for business development, we will continue to setup a unified the BP team to better serve Q arrows and third party merchants.
We expect the service revenue fall from E Commerce, Upstreaming will account for more significant percentage in the total service revenue.
Thank you.
Thank you so lunch.
Your next question comes from the line.
From openings.
Your line is levels.
Oh, well, how one is fun.
Just one on one Shaw shows why you Wouldnt go more studies your warranty solutions.
These are generally considered outside sales this quarter the whole now.
Yeah, good mostly used to seeing year, we'll put in high yield co CEO.
This whole thing, Bob Hi, the financing, which along with our support.
Payables on 2 million now holds home.
Yeah with the.
Workloads Highwall b cell lung apartment tons job Ali tiny and the other strong quantities they were missing each handy and the way lighter. So once you g. So last year was on changing quite dynamic bullshit.
And now translate myself, thanks for taking my question.
Shows first congrats on the groovy shows despite a difficult operating environment.
Due to cope with my team. So I have a question about a full service model and then the platform models for a company have been mentioned the transition from the full service to the platform model and then can you talk about the reason behind the transition and then from two perspectives.
One from the operating the other form the financials case has about these two models performance in the fiscal year Twentytwenty and band the outlook for 2021, and then which I really cannot folkers. Thank you.
No presentation intervention versus bromine.
Change Analogize hole, you mean like handler borsa beverage actually increase on Togo share Permian portfolio.
We will increase over coaching and achieve our media dose achieve dollar yield the synergies ranching.
Launch in the gene transfer Togo Shanteau similar woman take good transactions based on single.
Thank you visits from me I'll, let me answer questions across from business package, and then Jackie will add something from financial results perspective.
It is true that if you tax.
The third quarter results during the pop up fuel for the.
Yes, we have mentioned the transition.
Several times.
Now the business performance and financial results have clearly.
Demonstrated that business transition is our successful.
New hires to total fleeing has further.
Early Joe's hunting classes causes us to capacity utilization is open change alcoa or the shows or Lucius hosing yield truck been 17, Campbell's yeah just.
I will then putting in women's as well what Holden has a couple in Portugal suit pumping.
Versus total in the wholesale way to border the thumping pilotless under that concentration wonder peanuts.
Gee CMP Yielder ballpark subpoenas validation.
Other quarter.
Model, our target one p. business this year region of go higher.
However.
Starting from our physical year 2019, we implemented doesn't matter.
Out of certain brands apparel products.
The full service model and the transform that business into the platform model.
That is are we wouldn't regard opening our lives door for ourselves incubated callout to sell our women's apparel products.
The only alcohol.
Monetization channel.
Our care outcome provides sellers on advertising services for third party ran and a much higher.
And the services revenue and the platform model.
Generated and the recognized.
Based on that Phil and advertising services provided.
So we will have become platform focused and the diversified.
So what should the alleles hanja and say look when they won't change either through above pillar model changes Halloween was a real areas looking passenger the while core title for most of the Lincoln.
Three g. adoption lay reliable nomenclature larger the while the patient should have been the congenital so those can just geopolitical geological most of the course butter.
Hello, Yes judicial on looking at your soul together by the it by the Tommys Anda.
During the past physical year Twentytwenty units are following the moving off.
Economy in China.
There are lots of factors that boost our platform business model.
Correct.
Asset light model, one more third party brands and a merchant attractive back how our marketing and advertising.
One more monetization channel developed to match with various brands and a much and so for the full physical year Twentytwenty.
Platform services revenue increased over 100% as compared to the last physical year.
Let's see most of the usual Meanwhile, on the lots to do on Togo only in the.
So this will do further clearly associations total time in Bolivia, Shandy, Tony will close with shell, which should obviously doesn't seem more such agila. The political union hurt you ultimately we will achieve all I can do a patent acquisition.
Well for the added a full service model, we know noted that our incubation fees.
Much faster than the replication of supply chain and the growth if that limited.
Vision, the product category, mainly limited womens apparel.
Neil Hi investments, we want to enter into other product category.
In addition, the competition.
Our cost of two point out that the supply chain capabilities and resources, we accumulated in the full service model.
Should provide us with more development possibilities in the future.
Good early near surface as the year post approval.
Given the important thing yield Youre Ping.
We'll launch in the so the simple answer goes we'll let associate general assumptions you further.
As of March 31, Twentytwenty, you know we have successfully completed that business transition upset the online store opened in the name of certain established and emerging out from the food service model to the platform model and the you know platform model is optics.
Farming.
The focus of the company's business are in the future.
Pina yield closer to judge issued called out there were also concluded currently of watching therefore, the federal can go to holder been facing or the shareholder Gaza John Shippable. She said she passionately digestion, daughter standouts options.
Also Gigi further delay on the bench periods of what our core is entirely PNM was the shot certainly other patient trued up on Ricci Pina yield chance. This is another courses and yields on the temp, yes, the goals for the year within done we'll assess union leaders at only ship.
For our platform model, we'll continue to.
Expand and enlarge our our pools incubate operate with more out being a more flexible and diversifies way.
For the existing bank.
We will continue to cultivate them to improve their monetization capabilities to serve more third party merchant and Brad.
Meanwhile.
We'll actively explore and develop more monetization channel like E Commerce live streaming which has emerged as a part of the channel and as a platform model. We expect the our platform model will further increase the revenue contribution percentage as compared to the total.
Net revenue.
It has been and we'll continue to be the major.
Gross driver revenue increase and achievements of.
Profitability during the fiscal year Twentytwenty, while thank you.
Okay. Thank you Ms. phone.
For Jackie here.
I want to share some information regarding from the financial result, prospecting and maybe you can from that information or you might see going okay. The rationale and the financial modeling of the difference.
You know that those two models you might see why we need to do that transition.
First I want to talk about from the revenue prospective as compared to the total net revenue.
You can calculate affirmed the financial statement that services revenue under the platform model accounted for 14 cross and in fiscal year 2019, and the increased to 23% in fiscal year 2020.
And we expect as a percentage will increase a further to around.
40% in the fiscal year 2021.
Right. It's true that you know the product sales and revenue ended the first service model X deal counts for the majority of the total net revenue.
If we look of.
Further from the.
Gross profit.
Prospectively.
As compared to the total gross profit generating.
Gross profit from the platform model accounted for 24, plus and in the fiscal year 2019, and an increase to 35% in basically our 2020.
And we expect to you know the percentage will continue to go up maybe around 50% in the full fiscal year 2021.
And perform modeling as into asset light model will now account for the inventory costing eight if the cost of revenue account that.
Explains the difference why if you look at our gross profit press backing the percentage even higher for path on model.
And third let's look at the gross margin for the full fiscal year 2020 gross margin of services revenue was about 57% compared to 32% for product helps and at the full service model.
And.
If we further look at the operating profit.
I'm talking about operating coffee not taking into consideration of surgeons have quarter general and administrative expanding that could not be allocated to the phase two models.
For the full fiscal year 2020, the adjusted operating profit of proud of platform model.
Accounting of fall if at the majority nearly 70% as compared to the total adjusted operating profit.
And we expect the percentage will further go up in the future.
There Paul you know from the financial race out there I share just now for dividing into north to South model Underperform model, we can see clearly that the net that it really necessary.
You know to do the transition and the we expect that apparel model will play an even more important role in the future development.
Thank you.
Thank you.
Thank you so much.
Your next question comes from the line Peaky way from Citi. Your line is now.
So.
That's helpful.
Okay.
Thanks.
Yes.
Yeah.
You saw the more.
So.
[music].
Yes.
Yes.
Even the man.
Taking my question I have my question.
Thank you one signed some.
John.
Well that's now.
Yes.
Thank you.
Thank you.
Now let me take it the question and the for the full fiscal year 2021, our revenue guidance and.
No I want to separate them into two parts.
For US you know net revenue for our services through the press on model to be between RMB $520 million and RMB 610 million.
Representing a year over year growth between 72% and the 100, a 1% respectively.
It's a comfortable around signal.
At the 40, 40% of the total expected total net revenue.
We will prepare the forecasts are all in all the outlook right. The guidance, we consider the following drivers behind the growth for the for the path on model.
For us we we consider the number of kill US serving the comprehensive path on model.
And we expect data to increase from.
Around 130 as of March 31, 2022 over to overall to handle at over 210, which represent.
Growth the by over 50%.
To compare I am fiscal year, 2020, and increase and talking about the number of Coelce increase at 12% to 137 as of March 31, 2020 from 122 as of March 31, 2019 immediately.
You know in the next year and base our the planned for the company to some molecule Aaas, we expect to will you know tied to some more and molecules.
And the second.
We can we consider the improve the performance all in all such Pos as evidenced by the increase in the aggregate number off the platform top tier establish an emerging killer apps.
Look has a history right increased to 37 as of March 30, 120 from 22 Essam as of March 31 2019.
And we expect.
The number to increase a further by a wrong 50%.
And third we also consider or you know the increase in the number of the brand.
Our with which the company cooperate head.
Advertising basis all other.
Monetization channels.
And even talking about the advertising basic and at the increased to 730 fine for the fiscal year 2020 from a 507 for the fiscal year.
2019.
We expect a number of brand the to increase over 50% in fiscal year 2021.
In addition, the merchants that the company served you know.