Q1 2021 Ruhnn Holding Ltd Earnings Call
[music].
This time, all participants are in a listen only mode.
Today's conference call is being recorded.
I will now turn call over to your host Mr. Sterling song Senior IR director of football.
Go ahead.
Thank you. Thank you operator Hello.
Hi, everyone and welcome to Walker.
<unk> conference call for the fourth quarter of fiscal year 20 tons per watt.
As a reminder, this conference is being recorded the company's financial and operational results what used to do a press release earlier today.
Available online you can download the earnings release and the fire up for the company email distribution list by visiting all IR section of the Companys website at <unk> Dot <unk> Dot com.
Uh huh.
Yeah listen our founder Dr. under seal enemies Ducky, while our sample will begin with some prepared remarks.
All even though his prepared remarks.
Our founder and chairman of the board of directors. The old went up for the Q and a session.
Before we continue deep law that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U.S., probably the Clinton indications at nice and healthy spot.
<unk> basement involved how does that probably a block that's helping actual results may be materially different from those trends.
Well the inflammation.
These and other risks.
It's included in <unk> public filings of the company with the U.S.
Chains coming so including its annual report on form Tenk, yet but.
The company that did not feel an obligation to update any forward looking statements, except as required by law.
Please also note that the Companys properties of the conference call might include disgusting.
GAAP financial information that was all non-GAAP financial measure the company property contains a reconciliation healthy none.
Non-GAAP mother mortgages, both the laclede compatible that neither.
I'll now turn the call to <unk>.
Following that the rock from the field I mean listen I mean can you.
Go ahead.
Thank you starting Hello, everyone. Thank you for joining our earnings conference call for the fourth quarter of fiscal year 2020 Watt basically.
The board of dry docks to our new fiscal year, driven by the successful transition.
Ill really focus too I was going to be fairly onto the platform model.
Revenue reached RMB 113.7 meeting with a year over year increase almost 74%.
I mean, it's rapidly over years growth momentum for the future.
Next to Cuattro following our IPO in April 2019.
The percentage of revenue as compared to total net revenue increased to 41% from 21% in the same quarter last.
Basically yes.
In addition, we generated a non cat weather just to get the net income of RMB 10.7 million compared to a net loss of RMB 21 called the big media, either getting closer I would love to critically ill.
In fiscal year Twentytwenty, one we will continue to deepen our efforts equaled must area as well as emphasize improving operational efficiency and profitability.
[noise], our outstanding performance once again.
Treaty our capabilities into our inhibition on the contribution.
On June 30, 2020, the total number of acute standby groupon. So long term agreements grew 51% year over year to 174.
The aggregate number of staff grew 53% year over year to over 263 million.
Our focus on growing the feeling and that was all a lot of standard <unk>, having being involved in the platform model has all been doing so keeping the country. We now.
We now classify all of our stand the Qtr piece of the total service revenue generated by them on the platform model during the previous trauma.
I see them as a to assess how about Q EPS performance.
As of June 30, Twentytwenty, our platform top tier two hour increased to eight from two as of June 32019.
Services revenue again, the rates either from I pad from top tier QSR accounted for 35% a glut approach.
Total service revenue, which.
Which indicated that each top tier two hours to average contribution was less than 5% of total service revenue.
Leveraging the entire acute EHR metrics to drive the future service revenue growth.
I would like to for the parts out that's pulling the significant expansion of our business onto the platform model and as a spin if mother transition.
We started to review our results of operations. According to operating segments, when making decisions about looking at the southeast and the second performance.
The two segments are.
City through the Pep, our model and the product field onto the full service model.
For the first fiscal quarter.
Typically segment onto the platform model demonstrated excellent profitability.
Income from operations of RMB.
22.2 million.
The operating margin and adjusted operating margin, reaching 20% under 22%.
Activity.
[noise] since fiscal year 2019.
Stocky the famous transition has based these costs in our previous earnings call.
So much so keep one twentytwenty, we had achieved certain milestones in Alabama is transitioning to the service business.
For the city with family, we are offering, whereas Q air monetization channels fluctuate hours and providing field and the other with having said that these are the sort of hockey Brent and the merchant.
<unk> E Commerce, I was screaming advertising and other field services through online share installs and the drugstores.
The I phone models had already come the focus of our business and they will be the primary driver of overall profitability in the future.
Ecommerce now streaming.
Surveys through online share share installed and advertising services are the main drivers to support our first hand, the girls this fiscal year.
Firstly.
Almost locked screening has emerged as an important to monetize this from China. It has maintained its strong growth momentum in the first fiscal quarter.
Generating approximately 21% of the total services revenue.
And the increasing about 700% year over year.
Leveraging our high quality cute on metrics.
Our first of the Poteet, Brad a strategy that combines both quality and efficacy helping them to receive a premium payment on the F. Brennan Tibetans the impact from lower price promotion during.
During the call must I'm sorry.
In addition, we have the topic strategy good cooperation with multiple platform to explore all equally live streaming monetization channels our.
Our Q else also expanded their monetization kind of beyond the pure allow screening, including online share installed and the Brian I think what happens to name a few.
Secondly.
Moving to Serbia.
Last year, we install methods.
KLAX service fees from the pocket murky based on yeah.
I had the extra traffic directly to <unk> actress skews the fed facilitate their own lifestyle.
Well they pay the service revenue representing 15% of the total service revenue.
In the current the culture.
Created by nearly 62% year over year.
Our plan is to continue veteran mall I births have to have a virtue online share installed from all and the more newly Santa Clara.
Who executed accidents marketing skills.
Through our Q, they are distinct personal style and our pace after matching capabilities.
We can effectively.
Did I Miss the traffic and to come to the monetization.
Some of it.
Turning to our advertising services and.
Advertising services revenue account.
Accounting for 48% of the total.
Service revenue in the counterculture incur.
Increased 53% year over year.
As of June 30, Twentytwenty we.
We had to put in there to be a total of one stop end to 100, and the 86 brands in our advertising services revenue.
Representing nearly seven sub pay 70% growth from center Handoffs and the one brand <unk> as of June 30 cut the 19th.
The good curbing brands accounted for over 60% of the total number of brands at least in the current quarter.
For the brands or categories, Inc.
Yeah, and the cosmetic accounted for over 50%.
Top 10 brands accounting to fall around just 31% of total otherwise advertising service revenue and as.
And as that but no one brand accounted for about 10%.
With minimal concentration risk.
In addition.
The major social media platform for us to provide kind of a timing somebody have extended even further beyond that just to be Brian that need to be in the shop and the Doe, even now being added to the roster.
And advertising services revenue generates distinguish offerings accounting for nearly 10% of total totally advertising service revenue.
We will continue during the advertising business and look forward to.
Collaborating with mall brands, both domestically and globally.
Now I will provide an update on the company's recent strategy initiative.
To act as a supplement to our call incubated. The Q hours. We launched is that we keep plan to talk at the top tiers, who have a large number of color and the strong influence in part of a major social kinda talk from China.
Drawing on our extensive experience and in depth knowledge of best practices across the industry.
We can provide with curiosity, new monetization opportunities such as E Commerce, and I was screaming advertising campaigns and all last year, we thought as though as Clinton's yeah, I'm gonna punishing come up a bit.
Capabilities.
This strategy has been approved.
Cool quit practicable by the performance of a recent delays on top tier through long term agreements.
For example, shell what a patented timmins acute EHR on Crystal had zero NAV increased the number of her fast during the six month period prior to joining too fine.
Monetization channel was relying on what should give.
After collaborating with real Hot we soon discovered as the potential in the economy class premiums in it.
<unk> performance has been consistently exceeding expectations.
She's petition.
Well through the continuous efforts of our concentrate production and the two every division teams.
The number of shop shelves followers on social kind of has increased by over one meeting the three month period.
The person lost the income has increased over three times.
And for the social media platforms would be.
Cooperative is in addition to leap pool I call. It makes social media platforms, such as BT beauty, so each often suit and the crisil are becoming more and more important for us.
For example, Crisil has grown faster he comes downstream in Venice, and Michelle who is becoming very attractive in the advertising business.
A total of more than 22 hours I'm talking to have joined the rules and this year.
Who hunt has benefited tremendously as we have been competing against you asked metrics through various social media platform.
Beauty bloggers, she may who.
Who was incubated by room on Chrysler platform has made substantial progress.
Substantial progress in performance.
Through our approximate six month period of continuous recommending and to introducing the beauty and the makeup products to her followers.
G M eight facilities by she may increase to two over on the fall mean in August to Twentytwenty from RMB two meeting April 2020 purely on Crisil.
We've been too high we are also.
We're also working on various new business initiatives, such as artificial intelligence to enable this election 15, all met the Tera product, which has served and accumulates you. The number of approximately what has the rest of the party merchants and brands since its inception.
As a leading Q airpatrol future in China, We are building a technology driven to ETF platform to cope with the increasing demand for our surveys on the federal mogul.
Our Q EHR platform.
A proprietary technology platform and they both brands and the merchants to place their orders for Q L. service online as well as completing the whole process online include.
Including submitting product samples and the picture a wrench into El Nio streaming schedule. So.
Cooperation agreement, but.
The two air platform.
Capitalizing on our technology built integrity to be matched brands and merchants wins fifth Brook, you have obviously ARPU.
[noise]. Moreover, seeming.
Given that the key opinion consumer offer.
Also known as QCS, who test.
Who test and the review products and share their opinions and the comments on social media.
Fame and increase.
Increased is increasingly important to go you mandate consumers decision making process.
We are also developing cioffi community.
<unk> proprietary technology platform.
Turning to reach a broader population of excuses and monetize their content.
This will be able to.
Ladies and award by sharing constant our kills the community.
And we plan to provide a few people who have to reach a potential these free treatment and the cost to fix them to be successful.
Except for a few hours.
As all as of June 30, Twentytwenty we.
We had a technology team with more than 40 engineers.
Our continuous hard work has begun to five foods and our children are increasingly being recognized by the market.
In July 2020.
We want to go.
Good in line or was the first was good award of Das to show reviewed by an M.C.N.
Taking city.
Look at the mistakes as the topic to shooting skincare advertising.
The other was.
Awards are the most valuable commercial video from UQM.
Which was a common buttons awful lot of competed two P.M.G. Research center.
We all know that these two awards are not only a rough weather condition of our past efforts, but also an encouragement to the future development of Ohio.
[noise] Lastly, let me provide an update on our share repurchase program in June Twentytwenty, Our board of directors approved a share repurchase program.
Up to.
15 million U.S. dollar of our office standing Indiana.
A pure rate at not to exceed 12 month, beginning chosen to 2020.
We master this share repurchase program on July 920, 20, and the Btwos that day and at the end of September 11 2020.
Proximic today.
It hasn't been 91 stop and if yes, what were purchased for an aggregate consideration of approximately.
3.1 million U.S. dollar.
We funded the purchase made on these programs from existing cash balance.
This program reflects our solid financial position and our committee.
Commitments to increasing shareholders shareholder value and our confidence.
Our business fundamentals.
The long term prospects.
We expect to continue to implement our share repurchase program in a manner consistent with market conditions and the interest of our shareholders.
Subject to the restrictions relating to water class the timing on the applicable law.
With that I will now turn the call over to Mr., Jackie Wong CFO of the company, who will provide an update on our financial performance for the fourth quarter of fiscal year typically walk.
[noise], Thank you Mr., Justin Hello, everyone.
Okay.
Let's turn to results for the first fiscal quarter somebody here. So when you do the PEPFAR model increased 74% year over year amounting to 41% of total net revenue net loss attributable to hunt was RMB 56.6 million inclusive of non cash.
Josh amortization and impairment of exclusive publishing rights under the food service model.
Adjusted net income attributable to hand was RMB 10.7 million as compared to a loss of RMB 21.6 million in the same period of last fiscal year.
Furthermore, net cash provided by operating activities increased 11% year over year to RMB 11.6 million.
Now, let's move to detail the financial performance for the first quarter of fiscal year 2021.
Total net revenue was RMB 280.4 million, a decrease of RMB 32.4 million or 10% from RMB three handle the tailpipe 18.
For the same quarter of last fiscal year.
Which was mainly due to the decrease in product sales revenue through the food service model and partially offset by the significant increase in severity.
Several case when you do the powerful model.
Somebody say sweat ran into the model was RMB 113.7 million an increase of RMB 48 point to me all 74% from RMB 65.5 million same quarter, a philosophy fiscal year <unk>.
The increase was mainly attributable to first the increase in the number of Coelce, serving the comprehensive panel mando.
Wage increases.
She was handed SMTC fall as of June 32020.
From a 133 as of June 32019.
Second the improved the performance of such Coelce.
As evidenced by the increase in the aggregate number of the products of the past from top tier established and emerging kill else to 40 fives and some June 30 20 Twond.
From a 28 as of June 32019, and.
And the finally, an increase in the number of brands that the company cooperated a week either advertising pacing to 431 in the first quarter of fiscal year 2021 from 278 four.
For the same quarter of last fiscal year.
Product sales revenues through the first dose model was RMB 166.8 million a decrease of RMB 80.5 million or 33% from RMB 247.3 million for the same quarter of last fiscal year.
[music].
The decrease was primarily attributable to the following factors for us.
For us the translation of the base case model, although some I'm not stop us from the full service model to the path on model.
This led to the number of our own amass dos decreasing to 19 as of June 32020 from Balky as of June 32019.
And the number of our POS was serving as opposed to US model decreasing to three as of June 30, 2020 from 11 as of June 32019. This factor contributed to the majority of the decrease.
Second we experienced we experienced a decrease in the product sales generally maintained about the unmatched daus served by our top Keno Hill, who suffer from that Tim publicity since April 20 Twond.
And finally, the ongoing impact of the coal the 19 can damage in China during the first fiscal quarter, although to a lesser extent.
Maybe last quarter.
Corporate lending was RMB 173 million a decrease of RMB 28 point, threemillion or 14% from RMB two hands or the one wants to me for the same quarter of last fiscal year.
Which was primarily in line with the decrease in total narrowing.
Cost of product sales decreased by RMB 55.3 million or 32% year over year to RMB 118.6 million.
Gross profit was RMB 107.4 million, a decrease of RMB 4.1 million or 4% from RMB 111.5 million for the same quarter of last fiscal year, primarily as a result of the decrease in product sales yearend.
Gross margin increased to 38% from 36% for the same quarter of last fiscal year, primarily attributable to the increase in services revenue as a percentage of total net revenues in Q, 41% from 21% for the future.
Culture of last fiscal year.
Services revenue has a higher gross margin as compared to products downstream.
Total operating expenses work was were RMB 171.9 million an increase of.
An increase of RMB 33.1 million or 24% from RMB 138 point aiming for the same quarter of last fiscal year included in the total operating expenses.
Was an aggregate of RMB 67.3 million of non cash amortization and impairment of intangible assets in relation to exclusive competition right.
Non cash share based compensation expense and the litigation costs.
In the first quarter of fiscal year 2021, compared to a non cash amortization of exclusive publishing rights of RMB 5.2 million in the same quarter of last fiscal year.
Total operating expenses accounted for 61% and a 44% of the total net revenue for the first quarter of fiscal year, 2021, and 2020, respectively.
Excluding the noncash charges and the litigation cost as mentioned above the percentage was 37% and a 43% for the fiscal first quarter of fiscal year 2021 to 2020, respectively.
Fulfillment expenses were RMB $18.8 million, a decrease of RMB 16 point to me all 46% from RMB 35 million for the same quarter of last fiscal year.
Decrease was largely in line with an equally decrease in product sales.
Yes.
Fulfillment expenses accounted for 11% end of 14%.
Our product sales revenue for the first quarter of fiscal year 2020.
2021, and 2020, respectively.
Sales and marketing expenses were RMB $69.5 million, an increase of RMB 2.5 million or 1% from RMB six 9 million for the same quarter of last fiscal year, so that sales and marketing expenses can.
Consist primarily of expansive Tokyo, L. incubation calculation and the change for the company is passed from chaos as well as expanding incurred for the company is advertising marketing and a brand promotion activities ended the full service model.
Following the expansion Opco L. pool from a 133 assigned to kill else as of June 32019 to 174 as of June 32020 related to expenses incurred for intubation cultivation and changing it.
Order to support increased activities for the company's Kelway, all sales and advertising business increased accordingly.
Selling and marketing expenses accounted for 25% or 22% of the total net revenue for the first quarter fiscal year, 2021, and 2020, respectively exclude excluding the numbers the noncash share based comp empty accommodation expansion the person.
Page was 23% and 22%.
General and administrative expenses was RMB, 25% at 25.2 million a decrease of RMB.
5.3 million or 17% from RMB 30.5 million.
For the same quarter last fiscal year general and administrative expenses accounted for 9% and a 10% of the total net revenue for the first quarter of fiscal year, 2021, and 2020, respectively, excluding noncash share based compensation expense and.
Litigation costs the price.
The percentage was seven seven passion and 10% respectively.
Amortization of exclusive carbon life of RMB by continuing representing the amortization of intangible assets in relation to exclusive commercial rights granted by a top kit will.
Impairment of exclusive option life was RMB 53.2 million compared to nail in the same quarter of last fiscal year.
We experienced a significant decrease in the product sales surrendering generated from the last daus served by a top Keno Hill, who suffer from negative publicity since April 2020.
Assess the continuing impact of our operations and.
And to recognize an impairment on the intangible assets relating to the exclusive publishing rights granted by Dave's killer whale as of June 32020.
Net loss attributable to hand was RMB six or 56.6 million.
Inclusive of the aggregate of RMB, six seven plus 3 million of noncash amortization and impairment of intangible assets now.
Noncash share based compensation expense and litigation costs come.
Compared to RMB 26.7 million.
It's inclusive of amortization of exclusive publishing rights of RMB $5.2 million for the same quarter of last fiscal year. Adjusted net income attributable to hand was RMB 10.7 million compared to a loss of RMB 21.6 million.
For the second quarter of last fiscal year end.
In terms of our balance sheet and cash flow as of June 30, 21, the company had a cash and cash equivalents restricted cash and short term investments of RMB $795.4 million compared to RMB 800.6 million as of May.
Oh gosh, such 120 29.
Net cash provided by operating activities was RMB 11.6 million for the first quarter of fiscal year 2021, compared to RMB 1 million for the same quarter of last fiscal year.
Net cash used in financial activities was RMB 11, you mean, primarily as a result of the share repurchase program as updated by Mr. Sunny just now.
Before moving to the outlook.
Like to staff few minutes to discuss further our segment performance.
As discussed by Mr. sitting above we.
We started to review our results of operations by two operating segments. During the second quarter for the services segment. We achieved an income from operations of RMB 20 coupon to me, which was equal to the somebody says the revenue minus related costs of running an offer.
Operating expenses like the sales and marketing general and administrative expenses.
Operating margin, reaching 20%.
Adjusted income from operations.
Operations of services was RMB 25 points or one indeed with the adjusted operating margin rate in 22%.
Product sales segment soft our loss in the current quarter.
The the adjusting matters at the adjusted loss from operations of product sales segments was RMB 11 on 16.
With respect to our outlook, we are really interesting batch for the full fiscal year or 20 twond. The while we currently expects our net revenue from services through the pass on model to be between RMB 520, Mimi and RMB six.
Ranjan attending representing a year over year growth of between seven.
72% and a one handed a 1% this forecast reflects our current and preliminary view on the current basis, the situation and the market conditions, which are all subject to change.
We do not provide outlook for our product sales revenue for the full fiscal year of 2021 because of the uncertainty in the continuing impact of the negative publicity of the top AOL, serving surgeon on last dog and that the full service model as discussed previously.
This concludes.
Crude our prepared remarks, we will now open the call for candidate operator. Please go ahead.
Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question. Please press star one on your telephone.
Oh wait for your name to be announced if you wish to cancel your request. Please press the pound or have Steve.
The benefit of all disciplines onto the call. If you wish to ask your question to the company's management in Chinese.
Leave immediately repeat your question in English.
Your first question comes from the line of Tiki Bay of Citi. Please ask your question.
Thank you.
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Sachin one Bonnie.
Hi, Bob.
Oh good.
Good.
On the 100 doses answers.
Let's see things.
Good evening management, Thanks for taking my questions Mike.
My first question is about so management provide some color about the revenue contribution from that kill only somebody here this quarter and they never knew him equal.
My second question is about the E commerce launch trimming competition.
So much sense management finkelstein imposed.
Sure we are increasingly more.
This quarter.
Okay.
Great. Thank you.
Thank you.
Thank you. Thank you Vicki let me take your first question and regarding the percentage of the revenue generated.
By Daiichi I, probably will divide into two segments for the services revenue and or the Pep Armando said.
Service revenue generated by Dai Ichi.
Primarily E Commerce live streaming accounted for 8% of the total.
Yes, some of it is the revenue.
Lastly, then a 10%.
For the product sales revenue ended the full service model.
Product sales the revenue generated by ominous dos served by Doggy accounted for about 70% of the total product sales to revenue in both the.
In both the concourse and the same quarter last fiscal year.
Fall for the product sales revenue the revenue generated by Dai Ichi decrease about 33% as compared to the same quarter of last fiscal year, primarily attributable to the following two factors.
One is because we try to teach cage color cosmetics and I start from the full service model into the Pep Armando you mean or the <unk> I think the August 29 key.
So the second factor if since April 2020.
There was negative publicity and reach a which affected the revenue generated by dialing.
So for your second question you are talking about the computation.
All the kill at all in the ecommerce right, Jamie that chart and.
I would say that's a.
The.
Service revenue generated through the.
Like streaming played more in.
More and more importantly, though our platform model and the increase of over 700% as compared to the prior year and up.
But we are playing any differently as compare to our players.
And although the competition is intense we are we are operating.
You know thats on the way we operate it differently.
First we are leveraging our high quality TQL and we offer you know third party brand strategy that combines both quality and efficiency, helping them to receive a premium payments on their brand to lessen any.
The impact from the lower price promotion during E commerce like streaming.
And.
And then in addition, we also had top strategic cooperation with multiple platforms to its Paul the E commerce like streaming monetization channels and I'm talking on Bali. You know in addition to the Taobao platform. We are working with you know all the social media platform.
And ER for the live streaming and they include you need or you know quite show, though in and itself also they are becoming more and more important and though for example, why so high school boss E Commerce live streaming basis and the rule.
Has benefited tremendously as we have been into Beijing, our Pos metrics through various social media platform and ER.
Our.
Our service revenue from the E Commerce live streaming on quite a show accounting of fall.
Currently about 5% in Q1, but we will see that change it's a trending up and we also kickoff the cooperation with the shopping so far the live streaming in September 2020.
I hope that answer your question.
Thank you.
Thank you.
Yes.
Your next question comes from the line of her review.
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Yeah.
Even though she's going to the injunction has been a teaching.
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If you could make it just hoping if you can call. It a typical shoot to continue.
Oh just of myself I'm not good.
My first question is about on how is your view competition dynamics in.
Industry like positive so even sequentially and so new homes market more with this emerging pathogens in the future and next one is about okay. Well I was wondering how is your husband to retain the top talents and should I shall we expect higher motivation hearts that Michelle.
Racial which won't hit the CNL, maybe next few quarters. Thanks.
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Into a merger we will let you know that into duty or something that would support the religions are you willing to Judy.
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Doesn't mean calvo has a face of essentially all the.
The what.
So for the time.
Thank you Phil Armstrong are unfolding and I will answer your questions.
In my opinion about the first question is a more focused on your fast how about platform from on the E. Commerce type characteristics of other social media platforms. You know our ecommerce left drilling has been quite popular Archie.
Our team are attracting a large number of social media platform and ecommerce players are cost up into you know so again quite as well.
Especially since mid Twentys, both though yeah and quite show has made great efforts to focus until else on the supply chain in their internal ecommerce segments in order to get a piece of the cake you know.
Yeah, our opinion those mainstream ecommerce player will face quite.
Intense competition in the ecommerce lot streaming sector in the next one to three years.
Specialty you know those large platforms with a huge amount of traffic out reach mainly rely on the op profit advantage out, we'll see more monetization panels and to speed up the overall process or to achieve more competitive.
So the boundaries of course that has some uh huh effect and how about platform. You know currently the overall market size for E commerce like streaming in China.
Tens of trillions of.
And be a bit quite huge potential, but still far away from the effects of failing but we believe the the sector still has a long way to go.
No we'll know soon.
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Well then so each on the entire wafer starts in the.
Cobble together so in that gives us work on the whole the other holding you to sell you the woman budget proposals under the class working together to look up was on that goes on me. So just another woman Lieutenant Mailer show was she made sodium.
That's a good question.
Queso their pencil holders from what little says a lot of work on the social predominantly through the funnel holders. She does her for gold in conferences, so dozens of value.
Youre Mega order that.
They go to the design to more than four years.
Something in the Trimble Downtimes and judging by what.
The Fargo, who told us what Jimmy.
Ah Onez tiny apart.
Understanding about the Bisha routines and that was on the social media.
A new high speed in depth cooperation with such mainstream social media platform.
Yeah on the Crisil for long.
You know in September 2019, Oh, we internally set top the ecommerce loved streaming operation team in Taiwan, Dolgin and this year you much within the same arguing partial as mentioned above this year, who has signed long term contracts with top tier kill Isles.
So one I see mine and solid cost structure through.
Through continued efforts.
By the constant production the calculation team.
The company has empowered kill out all the way to achieve much higher repeat purchase rate on the map a lot a number of fan base I don't know specifically each period, you fill out performed quite well in their ecommerce lot streaming business hasn't made quite a lot of progress.
The transaction volume for each.
Again there.
Like streaming is approximately several million RMB. Therefore, it is quite clear that the parallel monetization channel is becoming more and more people on one more flexible.
Well, Joe and he will know for sure you're going to see a chance here that will jump over the fence MPV doses adichie.
With England Yeah.
Cost of the Chilean Tongji for you to hold an outdoor social to Josh Shipp, who she should start those abboud goes.
Also the yields and China hole and then the.
There's also this rule or rule.
This is the funding for that whole consistent loan and deposit.
Oh no matter, what your labor he called the rule hunters appealing hot chief pushing further some slippage entries off shoot rutan's, whether decembers under working part owner must go to hunting license you have somebody in the balance sheet.
The answer is we haven't seen that oncology Holden Bogot coaching who love with other soldiers you also do face I show.
Regarding your second question, you know that so our service fee percentage, it's based on the long term agreements between the company and that the exclusive akhil out most of the internal incubated out exclusive to 205 to eight year.
Long term contracts, we have are excellent.
Excellent support team to serve each so I'll offer example content production incubation and a calculation of services to empower fill out for that long term development et cetera.
Hi is a strong.
Strong platform to provide so Alex with multiple months has many physician channel.
Too so more third party merchants and the third party brands, so Alex rely on local platform to a larger I have.
Therefore, you know that comes up quite quite strong relationship between our Johan and fill out.
So al.
Actually the overall to our rate for fill out the rule can you know, including top tier established and emerging or parallel is quite quite low.
Firstly the water for Veeva users also will have them all the new year, we saw them in Asia, the motor pool over or under some sort of be the review we coach.
Oh of course are following the increase in the percentage of services revenue through like streaming.
Compared to the total services revenue growth.
Gross margin will be your tongue way affected.
You know because.
The cost of our service the percentage is actually a higher the other monetization channel. Thank you.
Operator.
Your next question comes from the line of Lenny Chow of S.U.S. research.
Ask your question.
Hi, good accompanied by watching hockey system goes here. Thank you.
Oh, what you're saying about them either going to shake out CHF <unk> kitchen, Acone Kibali, you think oh, well how much of that Bob Hope people don't think home phone should she bore no woman. The ecology board similar shows just how they should door stop and think about the Codell wells.
Yes, you do then he can you just speak of it yeah I wish it sounds you guys what do you mean.
Go Oh can sleep at night or can you give me nice okay. So let me take that bench if they tell you.
I should say tell you can either late Chanel, yes.
Well thanks.
No both platforms and then attach great importance is like screen area, what's the proportion of revenues generated by my life in business and what are the main platform that other parallel concentrated on my.
My second question is about the category mix or what are the main pedigree called up and said they decide like other women wearing and what do you think.
Oh potential categories such as.
Such as FMCG. Thank you.
Okay. Thank you let me take your questions and your first one regarding the Soviets or revenue generated through the lives Jamie.
In the current quarter accounting for 21% of the total surveys arrest somebody say ceramic and again to come closer.
Compared to about could be less than 4% or 5% in the same quarter last fiscal year.
Regarding the platforms of our Coelce, who you know having a you know regarding the you know the social media accounts I, probably will not only mentioned the co a off why only dreamed up till way off the E Commerce live streaming I'm talking about.
All our key or else as of June 32.
20, Twond. He we have assigned a killer whale about why hand judge.
74 kill a AOS.
And though we are incubating. The you know as we have been mansion that all the time and that's one of our advantage like incubating and empower empower our Pos across all major social media platform in China and each deal has.
Yes.
More than two major social media accounts are falling in some hope for the of why handles a fortune 74, Santa Clara out as I mentioned, just now we are incubated the about I think that 90% of our sand to kill a all in waibel account.
All you can see have have waived worldcom and over 66 key questions have a convenient shopping shoes and over 50% I mean, Oh in platform and also 50 Protandim GDB.
I think nearly 30% of our total killer whales have major social media accounts in five show. So you can see from that percentage that we are really incubating them across all the social media platforms.
And a follow your third question.
For your third question regarding the major category of products.
Third party.
Brand and we are serving.
Depending on the actual monetization channel you are referring Sheila if you for example, if you are talking about the.
And our typing services and other powerful model, which accounts for the fall.
Nearly 50% of our total services revenue the major category if it's about the.
Cosmetics and personal care and.
Our skin care why that is I think the accounting for over a 50% or nearly over 60% of all of all the advertising service revenue and in the future we expected the adult or those costs.
Category, we will continue to pay our may some most important role in the future, but you know if you're talking about a live streaming E Commerce life Jamie.
The third category just now I mentioned this do a major category, but we can see that.
More and more on our category, including the food.
A lecture electric a path or are there are you know like a fashion products are increasing in the future are increasing and we expect that to carry catch grace will diversify into future gradually.
But if you are talking about.
All right, Jamie about a 21% of the total surveys.
Surveys, Iran. You ended up half a model and if youre talking about or some.
So Macy's ramune through the online share install and though we me apparel product. How we me apparel category are the majority category in dash monetization channel of the call.
Because if you are talking about the food so its a model nearly 100% if the target is related to the we mean apparel.
Hope that answer your question. Thank you.
Operator, if there are no further questions now I'd like to turn the call back over to the company for closing remarks.
Thank you. Thank you operator. Thank you. Thank you everyone. Thank you again for joining US today. If you have any further questions. Please specifically to contact the company Congratulations department.
Second for me just Mason provided on our website or the company's Ida business. The TPG relate Investor relations. Thank you everyone. Thank you operator, thank you bye.
This concludes the conference calls.
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