Q3 2020 Yunji Inc Earnings Call

[music].

Good morning, and good evening, ladies and gentlemen, thank you and welcome to the June cheese third quarter 2020 earnings Conference call.

As of today are mr. shop on their CEO, and chairman and Chief Executive Officer, if the trend Chen Chief Financial Officer.

We might.

Chief strategy Officer, and Chief people officer, the such on T. Chung Vice.

Vice President of financing and Midscale <unk> Investor Relations director of the company.

Now I would like to hand, the conference over to your first speaker for today Ms. Kate do I on the off of your G. Thank you. Please go ahead of men.

Hello, everyone and welcome to our third quarter, two sons and the argument.

Well the fact is not bad.

Outcomes and forward looking statement and within the meaning of the private Securities Litigation Reform Act of 1995, net I based on what kind of expectation and kind of monthly operating conditions and relate to the bad debt and <unk> no on not only on.

Aside from these and other act as of yet.

The industry. This all of the can save and can be identified by the analogy such as well.

We anticipate continued all of the some of the and passion for the detailed discussion of these risks and uncertainties before I turn the related documents filed with the U.S. and DC.

Any forward looking statements that we make on this call I based on the assumptions as of today and I, especially the qualified in the entirely by the cautionary statement respect of and teach outs of the company filings with the S. easy and he does not undertake any obligation to update the statement you keep that as required under applicable law.

With that I would now to and all but two shot of itself chairman and CEO of <unk>.

[noise], Idaho, playing but all the early on.

And you tend to go and I bought at the Hopper.

Hello, everyone and welcome to the <unk>.

<unk> quoted attorney and Wendy on school descent.

Yes, and you do you on the body to selling the Gulf of who the use of resulting from the JV since the deal to see you as well the little sort of we shouldn't see so didn't you yet today on me a job to increase the only Daniela five and this is the danger pose the on the day of career most of the because you you up.

On the one month and jobs and the joke, we're sort of them just.

She has already Aarding and your says the the chablis one of the joke, we're sold out the dollar each of the somebody that in the.

And the caught him with the generated a total Jay on the ore from my point, the feeling on the and that total revenue of from 1.7 on the billing and due to our promotion offer on fast moving much in high speed high repeat purchase rates among all that we also reduced our net.

Oh and by 14.9% year over year and.

And kind of a great we maintain and membership enrollment and then how can that continue increasing the number of and transact and meant that on our.

Our platform, which reached and 13 mailing sport truck bombs and the rest of the tend to the thirties 2020.

And usually away and is out the gentle on here well you know on the sort of and the guy debt and <unk>.

The times of creation.

The only look we are more true pretty assuming the for low income we had to go can look really good on the shelf it yet the the liquid and offerings.

The if he's on the of Korea pellets and shows you quit shows us and look we and several of the Charlie for patients on she really who the system. So if the war tons of Sunshine and going with the missile theme.

The he has been on.

He becoming a full fledged the membership based and social E Commerce platform for the the past the five years over the course of the peer rate, we have made and many changes and it continued to explore new forms of the membership to improve the volume or some of the membership model as the read out we have not only provided all the membranes.

With more benefit and a better ecommerce experience, but also set a code of video of mandates growing passion for sharing. Meanwhile, we have also focused on how many of them and that two homes in their sales potential by providing them with the addition of sales training by providing our members with education and training.

We have the fed and enraged and mandates knowledge of and different segments and it enabled and seal and stable income as it is pretty much on good leaders in all commodity.

The reselling the send the periods of the security of dumping died so some of the Uniloc on that going is 70 or so to ensure the you about the for you to rule. So the weighted to cities. The region grew up on Taser Donlin gold and the goes with the flow me on that for sure you'll walk on yet the dog and build the toward the doesn't keep me from me and talk.

The time, India, the budget, who can do the shelters and Korea.

Since our IPO as we strive to create a win win value proposition for all participants and our ecosystem. We have continued to invest in operating our supply chain and the and optimizing our community to become Chinas, leading men issue the day to day, social E Commerce platform most of the.

The clean we have also continued to develop and introduce net.

And he put that into okay bye.

Hi, continuously optimizing our supply chain and discover more mandates we the sales potential true introducing more products that balance seemingly mandates sharing activities.

Some of the Golden doesn't look what's the Theyll Gee, what sort of impact so many of them and it's all may ship or simply the new you talked all told you the anti fungal yields of the going is cushe and Jim Zone Giudici, non PNG projects and the equipment given on the Yahoo, Google conditions. The total net.

Oh, gosh and jobs and something to me, especially on the fuel can pet Coke wasn't him back share hotel the gene Bend the Archer will the two Dutch also the quota share city did you do.

The g. showing him Paul So you're told the banking Shelby should at some point Youre going go the Molly could go on call the old on credit so, though on the shoulders Euclid ubiquitous yet in Kansas and specific product categories were very focused on the beauty food and how the supplement.

As such in order to better coordinate mesquite products, we maintain ongoing investment into the private label and the joint venture Blanche during the third quarter as the result of trendy in mass and many quality suppliers and the leading manufacturers and being able to adapt their business and grow their online from.

The two past the interface of and.

In addition, the players and the many factories also provided and platform is that we had more premium product at attractive prices for example of doing deep the definitely 11 shopping festival, our private label and the joint venture brands contributed nearly 20% of the our total festival GMB and I'm on that day.

During the third quarter and age and Lee of a health and stuff and then the product to sell exclusively on our platform is it is 500 money on me in comparison to our sort of squeeze the lower gross profit and the net positives and use the feedback the magnitude of product generating higher profit I'll close.

On where endorsed the by our members with the sales potential and the word celebrated the by our users.

So the should also refer to sales as you pull yet we're fortunate to the other sort of you'll see from Cree judge and the Ginger goes on.

And for sure of over the coming and push you on Teradata something from entry showed us. The harder told you then he could do the view and some kinda adjusted to the Piceance the from the on the Sohu media.

And just on what she's the decision going in.

Sorry of hockey stick by Golar power the future.

I was so show equal nice community, we have found that the strongest the amount of and [laughter] reason sales channel anesthetic management and to earn additional income through a part time jobs. The individuals don't not necessarily come on and diverse portfolio of and supply category no an effective and on bell.

And that perhaps is that on what [laughter] and.

And that seems like a reasonable profitability professional product information training and convenient obviously on the studies in order to meet the such demands we have viewed Holly refine and differentiated and supply chain I suppose the professional training and both I would say this managers and all of them and basically the sales potential.

So the Trinet will mature the shape of the she believes the nimble unit the dollar Burger bar and bulk sales.

The new one but the adoption of the sea will both on the junior debt you and all I can go from.

On the social tells the.

Such and May should drive made changes the danger of new from issued Youre on the shows you quit three times and you go through each of the Yahoo Post the world Chinchilla. The initial who appears to me the team's itself the shipping sort of change the while the the surgeon fusion patient reported.

She is a journey of wasserstein, the Hugo shoulders, and the quick smuggling of the Darren So they can you share. The she she felt that she can do trends hold on moving on your cool the distance as you go to share.

So your diet EWP and the choose to use on the Yahoo, and Google there. So if the day independent of the horse trading volume sort of really cool towards the low shows you where so many times on so you will shift to the T. GAAP measures on threat on me at Pitarrilla, Jim Cox maze draw the trees of associate hold true that you do.

With the did you get that everybody is sort of the team debt.

Same as the only and philosophy and we have made a significant progress and you kind of vision of Oh, the food category supply chain introducing multiple credits.

To generate and really stuff on the yep. Meanwhile, the yeah, we have and I think weighted allergists athletes feeling and the creation of the probably the high school and <unk> products and the other product category and September for simple, we have launched a trial food group, where he and I remember the suite the sales potential so of that.

Okay day to make a daily introductions to have a price when you pick up the.

Six different delicious food from <unk>, I think and we also hired senior lecturer range specialize in marketing and training to better trained individuals and Allergan show E Commerce Committee and the freight atrophied element days with sales potential on the food the product category, the type of and Takeda for a product category.

And he has enabled the mandates we the sales potential to become assets from the field well also enabling the same and that's to become trusted the sources of information and ice and the cash.

Consequently, our men, but have the devote the ability to reach share talk the users more accurately as well as maintaining high touch relationship we sent the talking to use it and think that.

And the result, we observed the repeat purchase it.

And more than 70% of and platform is that in September the continues to demonstrate the strength of some of those appropriately and professional merchandising because of lucky which have the help to significantly improve the income stuff of our meant that we sales potential seems the sand that begin sir.

The has completed the on the food court. The category. We also launched the community groups focused on the health and beauty categories in the quarter.

Over the coming quarters, we will be true to continue providing everyone with updates on.

Our progress and developing the credit committee.

Also on the two just kind of follow can do the CG for virtual goods such of also.

All of that to be hooked to the boat the vote for congestion on the starts the assumption on me.

Probably of in the second and unions on the timber share.

The use of good cohorts you over the two walks withdrawal from the of was the first of him back on the told him he might fall into the U.S the going is good.

The Dundee so the day.

During the quotes on on the marketing front and we also continued to make meaningful of her buys and both the establishment of and innovate and market and trying to leverage and the realization of a diverse content the formats such as the short form.

On video and the fine screening, which happened in the enabling us to better present, and a low dose right at the source to fund our quality supply chain going forward, we plan to further leverage a range supply chain competitive advantages and cost control and the operational efficiency establish collaborations.

We told the and the meat and tears streaming to introduce more products to our income and its commodity and it provides support and resources to more of those strong and your friends and emerging brands with high gross potential.

Women to judge on heard of are going the other two new and used the phone the jaybird youre watching the equally or more to the from net user.

The other way like on John tissues, [laughter] cool gross yields of going there hopefully infringe on the you show most of it. So you talk of sheet you talked you Jim comp you need the movie on gene mortgage and you think.

In summary, we continue to bolster the competitive advantages of and our differentiated the blanching well further optimizing on the membership base the ecosystem during the third quarter. Looking ahead, we plan to continue exploring those new models and the marketing and that's capable of them.

Creating win win arrangement for the mandates suppliers and he says like at the same time, we will play all the time he execution of those new initiatives, which will side of crop how a advancement to too.

The last and go of the healthy profitability.

Some of waiting on this they are both and her without the fringe on touting that and.

[laughter] from after all the CFO of rack tend to go from there on financial [noise].

Thank you standard.

Everyone. Good why.

Of course on our financial results, Chris no sort of on numbers.

Speaking of the use of closing remarks on the terms and on comparisons and for Cindy changes on your with your basis and that's on North pit.

[laughter] you might also increasing competition in the industry, we decided to focus on the destruction of such a short from gains and instead focus our attention on the.

Finding a way of question on efficiency and the bolstered our group the World News during the quarter, we collaborated with the congressional agricultural providers to create.

And your products and the further promote to leave prioritization on from raw errors and made our.

Jamie show different as the bridge.

We continue to steadily for the last towards the co c. profitability during the sort of caught up from 20 and the reduced our naturals true.

43.6 million from the work on stream media does not take a closer look on our financials I will go to revenue as you sort of put on 21, and probably won't get it revenues from the sales of much of bars and so the quote on on 21, so part of Marty true, good and compared to 2.427 billion and the accounting for 84.2%.

And on for total revenue streams share it.

This decrease was due to the true genius drove much of this business model, which was in line with our continuous efforts to improve our operating efficiency and operating efficiency of our merchants.

And is from our Mark to Chris, Yes, you sort of caught up and trying to increase the true 130.4 million from.

It is six quest streaming and this increase was driven by an increase in the number of quality branch and the much and so our price. It was also due to the higher take rates on the we have two of our gross tragedy.

Existing partnerships with Brent and the leveraging our growing communities average to attract and your branch toll part for the.

The news from our membership program you sort of caught up from 24 full points on meeting and.

The two 206.7 million and holding the city of two for the revenues from price paying members in language. So on long term gross price.

The decline was due to the refinement of on membership the Roman system, which allows users to register all while the job as members of the insured membership benefits free of charge of four years gross margin of the set the quote on front on the one plenty of 9.5% compared to 17.8%. This increase was due to the higher gross margin.

The the men, which put us on the we introduced in the quarter or improve the substitute structure and enhanced.

Operating efficiency.

Now turning to our operating expenses fulfillment expenses and you sort of caught up on kind of decreased apart from the folks and true.

Two and 2.5 and media. This decrease was mainly due to first reduce the warehousing the launch of tickets expenses.

[laughter] because on result off from the on which of our sales and increased and lots of take the efficiencies second the reduce the sort of party payment of transaction fees due to lower commission rates and assume the law because the new cost due to the had account optimization.

Sales and marketing expenses of caught on on 30 decreased 42.

2.9, and 258.9 million driven part of the decreasing momentum to Pcs will continue to improve the efficiency of our member mentioned the operations to.

The the knowledge and content expenses and sort of quick on 20 decreased by 53% to 42.3 million from 90.1 million. This decrease was willing to two hours.

Your next question operator contract terms with our silver provide the which helped to reduce our sort of course and the partially due to increased personnel costs with the results on the call optimization general and administrative expenses and sort of caught on to the decreased the part.

2.6% to 51.8 million of 4.9% of coal the revenues from 63.7 million. The decrease was mainly due to the continuous efforts and headcount optimize the issue.

Overall total operating expenses for the quarter of concurrently decreased the barn, 46% to 343.6 million from 636.4 million. This decrease was due impart on continuous improvements to logistic efficiency, our ability to secure better punish of terms and increased and remember management expense.

The risk, which resulted from our continued improvement of service from engine.

Relationships most from appreciate seeing sort of quote on and printing debt.

The true to 24.4 million from 118 million interesting sort of quick of concluding a decrease of true.

43.6 million of from two of 1.3 million the city to Nutri force in second quarter of Contenting was.

So the 6.4.

And compared to 24.9 million basic and diluted net loss per share of attributable to ordinary share holders and sort of quote on Saturday will soak on so to compare a true.

Well, we said so konzo treated the same pure to of Plenti. My team now lets also take a look at our cash and the liquidity positions during the quarter, our ability to maintain a healthy level of work in terms of despite of.

Macro how do we saw and in certain cases of surety enabled us to support the operational and liquidity tomorrow as of September 30, and printing and a total of 1.2 billion in cash and cash equivalents mixture of cash and short term investments our balance sheet.

Good for the we will continue to drive the development of course, our marketplace and the much of our sales Denise we also plan to leverage the strength of our value proposition of for use of service providers and the surprise to launch new initiatives and developers.

Of course pennies synergies through the flow.

Of partnerships looking ahead, we remain confident cease gross to others will enable us to bolster our focus on interest as a steady pace of.

Element of our overall profitability and the continued laser foundational to our house, the gross and the future of profitability of our on time.

This concludes our prepared remarks today. Okay. So we are now ready to take of questions. Thank you very much ladies and gentlemen, and now begin the question and answer the question to ask questions on the phone. Please press star one on your telephone and wait for and aim to be announced if you wish to cancel the request please press the pound or cash.

You may ask the questions the mandaree and repeated in English.

Once the came to ask question. Please press star one.

Yes, so silence from questions are being conducted thank you.

Yes, no question.

And at this time I would like to turn the call back to management for closing.

Okay.

[noise] [noise] and goes on yesterday piece and the hesitate to contact us if you have and the for the person and we're looking forward to talk and what's the next quarter.

Ladies and gentlemen that does conclude the conference for today. Thank you for your participation you may now disconnect the lines.

[music].

[music].

[music].

Good morning, and good evening, ladies and gentlemen, thank you and well come to you and cheese third quarter 2012 earnings conference call with Us.

Today, our especially on the shell Chairman and Chief Executive Officer, Mr., Chen Chairman and Chief Financial Officer.

It's a claim of chip.

Chief strategy Officer, and Chief people Officer, Mr. Cheng Cheng.

Vice President of Finance and missed came the <unk> Investor Relations director of the company.

Now I would like to hand, the conference over to your first speaker for today Ms. came due.

The often cheap. Thank you. Please go ahead of men.

Hello, everyone and welcome to our third quarter two sons on the earnings call before we start. Please note that this call the content forward looking statements within the meaning of the private Securities Litigation Reform Act of nice and notified that our base on what kind of expectation and kind of a monkey operating conditions and relate to the bands that enrolled non on.

And on risk uncertainties.

On certain fees and other act of openings and its industry. These forward looking statements can be identified by the technologies such as well expects anticipates continue all of the some of the and passion for the detailed discussion of these risks and uncertainties. Please refer to our of related documents filed with the U.S. FTC.

Any forward looking statements that we make on this call are based on the assumptions as of today.

And I, especially the qualified in the entirety by cautionary statements risk factors and each of the company filings with SEC. Since he does not undertake any obligation to update the statement you expect as required under applicable law.

With that I would note and all but two shot of itself chairman and CEO of <unk>.

And the whole playing the all of the already on the Feds resource I bought at the Hopper.

Hello, everyone and welcome to the third quarter today 20 earnings call defense.

Yes, and you do you are you on the body to go on Charlie Gulf of go the yields resulting from the Jvs and the you'll see that from a little sort of we should definitely see and she yet so bear with me and John to increase it probably goes all the buttons as of the danger posed on the day agree on what's the the because you you up.

On the one month and jobs from the Jvs on him.

She has already Aarding and your assessment of the Chablis one of the Joe you were sort of the dollar each of some of the wet.

In the third quarter with the generated a telltale g. on the ore from my point, the feeling on B and on total revenue of 1.7 on the billing and due to our promotion offer and fast moving merchandise week high repeat purchase rate and the all that we also reduced.

Our net loss by 14.9% year over year and he can kind of a great. We made here and.

On the issue in romantic day, helping us continue increasing the number of and transacting meant that on our.

Our platform, which reached and 13 mailing sport truck bombs and isn't the time to the thirties 2020.

And usually and where it goes up the genset of one year, well and elements will of under the guidance yet the.

The type of software issues. The only look we're more to the pre assuming the although if we had to go can look really good all the Soviet yet so the low to quit and offers.

The for each of the career paths and shows you quit joggers and locally and several of the channel you for patients on she she really units. This so if the war tons of Sunshine and going with the missile.

The <unk> has been on the path to become the full fledged membership base the social E Commerce platform for the the classify the it over the course of the pure rate, we have made and many changes and the continued to explore new forms of the membership to increase the value of some of them and they should model and the readout.

We have not only provide the elementary and with more benefit and a better E. Commerce experience, but also set a code of video of mandates growing passion for sharing. Meanwhile, we have also focused on how many of them and that's to India. So per day show by providing them with the addition of sales training by providing on them.

And that the education and training, we have the fed and rage, the mandate knowledge of and different segments and enable them to and stable income as he days remain on good leaders in our community.

The reselling the shed the quizzes, the Jody and dumping that first of all the Uniloc on that going is since you are so to ensure the you bought though because your total so the way to a series of age of grew up on Taser, Donna and going in the gross.

The follow me on that for sure you'll walk on yet that dark and go the towards the banking leap on me and towards having via the budgets, who can do the shelters and quite yet.

And our IPO as we strive to create age of when we value proposition for all participants and our ecosystem and we have continued to invest in operating our supply chain and the and optimizing all that community to become Chinas, leading men the should the base the social economic back on more specific.

We have also continued to develop and the introduced net Maggie.

He put assets and to connect.

Hi, continuously optimizing our supply chain and discover more mandates we the sales potential true introducing more credits that but I've seen the late Monday sharing activity.

Well the the Golden does and look what's it's the OTI most of the people right.

The only as of May draw may ship on jumping the living and that's all told you compete bonds the yields of the going mid Cush engines zone G. The well down PNG contract and the color given all the Yahoo, Google conditions, the tools on the goals and jobs and some people see the especially on the fuel Chem pet Coke.

And that shows of the deleveraging bend the Archer will the two Dutch also the quiet, but your stripping did you do.

The T. shirt Elgin poll. The so you're told you balance sheet Shelby two dots on peak Youre can go the volume could go on called the use of Bankrate. So though on the shoulders, you where you want for the Shiite.

In terms of specific product categories were very focused on beauty food and how the suffering and as such in order to better coordinate match the products, we maintain ongoing investment into the private label and the joint venture blank Gary is that quota as the result of Randy.

And then many quality supply is and the leading manufacturers on being able to adapt their business and on grow their online traffic to pass the interface of and and.

In addition, the fires and the lives on trays also provided and platform that we had the more premium product at attractive prices. For example, during the yeah definitely mom and shopping festival, our private label and the joint venture brands contributed to nearly 20% of the our total first of all jambi and I'm on that day.

During the third quarter and age and me well the help supplement products sold exclusively on our platform.

It is 500 money on me in comparison to our product suite, the lower gross profit and the net positives and use the feedback the magnitude of credit generating higher profit I'll platform, where endorsed the by our members with the sales potential and the worth celebrating the by our users.

So they should also referred to the shows your equity yet girls.

What would you need to the other sort of you'll see both the judge and the Ginger goes on.

And what's your goal for the coming it puts you on pet door, the something from and to show. The so called the told the Dungy Cody the leaving something the Giants of the Piceance the bump in the scope of work indeed.

And just on what she's the deals are going here.

Are you happy by the lifetime of the switch from.

And our self show economics commodity we have found that the strongest amount of [laughter].

With that sales and show anesthetic manager and so on average and then concept of part time to the.

On the individual store not message like him on a diverse portfolio of the bike category no on exactly the number of the product.

What is that and what.

The magazine for that.

And the goal profitability professional credit information training and of convenient obviously on the studies and lot of to me such demands we have viewed Holly refine and differentiate a two day supply chain I suppose the fashion on training to do both.

Most of my said as managers and all the mandates the sales potential.

So the trend yet on the do that she was the guidance you've really use some of them on the net dot Darla, we'll go up on both Jimmy and one bought the adoptions receivable biology, yet you on dollar and got Fat Juliette woman and total tells the story.

I should mention tied on May 10, Jesus the JJ and your commission.

Youre on the shows you the yet so it ends up going to the gate Youre.

Most of the order of Chinchilla day, each of whom.

LPG me the tons and junk food the shipping sort of changed the while the the surgeon fishing pace you're hopeful it.

Sales of J Associate and all you got the shortage and the whole yet so the girling you. The Darren So maybe can you share the she issued by the cheap and June two and toward the automobile you're cool the digits as you go to Joe.

During the day you opened the chiefs of you saw the Yahoo topical that since the day in Japan, and the whole Ajay and one of them sort of ring tone.

Most of you know shows you quit three times. The so you had a share to the to GAAP measures on so but for me at Pitarrilla. She on calc may draw. The three of the past so true hold true that you do equates the as you get that up we bought the answer to the two of them.

Thanks, and only and philosophy and we have made a significant progress any kind of vision of Oh, the third category supply chain introduced and multiple products to generate and release of RMB sales. Meanwhile, the Hello.

He has been nothing kt, the allies and Thats my experience.

The Asian of the popular high school, and <unk> product and the other product categories and September for example, we have launched a trial for the group, where and I remember the suite the sales potential sales.

Good day days to make a daily introduction of correctly that the effect.

The different delicious food products as income we also hired senior lecturer range specialized in March the and training the better from individuals in our income show economies, the community and freight and your Peter Fernandez with sales potential on the food of product category. The.

Type of and complicated from a product category training has enabled the mandate suite the sales potential to become asset sales.

Well also enabling the same mandates to become trusted the sources of information and ice and the currency.

Consequently of amendments have the devote the ability to reach their top the you guys and.

Accurately as well as maintain high touch relationship we sent the talking to you that and intact. As the result, we observed the repeat purchase it from wood and 70% of and platform is that in September the.

Continues to demonstrate the strength of some of those product fully and professional merchandising because of what the.

Which have the help to significantly improve the incomes of the element that we chose Prudential king of the sand that began selling ESCO really the only for the quarter category. We also launched the community groups focused on the health and beauty category in the quarter.

Over the coming the quote it we will be share to continue providing everyone. We update on.

Our progress and developing the credit committee.

Also on the two just kind of follow and all the she's you've actually got hooked on your phone.

So thats the Veeva vault the of also congestion on the study.

The resulting from the.

Probably the range is that going and on the timber show the youth hooked.

Well the total GE over the wall withdrawal from the up what's the cost of him back on told him he might fall into the use of going it towards the Dundee so the gross.

During the quotes on on the marketing front and we also continued to make meaningful progress and both of the establishment of and innovate and mountain Shadows and the realization of advisors content the format.

Cash and short form video and the buying screaming, which happened and they will not to better present and of low dose of pride of source the from our quality supply chain going forward, what plans to further leverage our days supply and change competitive advantages and cost control and the operational efficiency.

Average collaborations, we told and the meat and tears commit to introduce more part of the steer away income its community and the provide support and the restart the Jim of dose drop and your friends and in light of brands with high growth potential.

Well then the to judge on how you are going the other two on the use of the jaybird youre watching the most of the from next year.

The way like on the judge issued.

Got to use the going yet hopefully on college on the each almost the so you're talking you talked you Jim comp you need we've moved the operating moving the changing.

In summary, we continue to bolster the competitive advantages of and our differentiated from blanching well further optimizing all the membership base the ecosystem during the third quarter. Looking ahead, we plan to continue exploring those new models and the monkeys and mat Kim of Goldman Sachs.

Creating win win arrangement for the mandates suppliers and he says like at the same time, we will price all the time the execution of of those new initiatives, which we'll try to pull up how a advancement the too.

The last and go of the healthy profitability.

Some of way on the share both until we the job and sales how would you go back.

That's true.

Oh, that's the all the CFO of rack tend to go over our financial and [noise].

[noise]. Thank you standard Hello, everyone. Good work also opens the results reasonable sort on numbers.

And I say to the use of closing remarks on the terms and the on compressors and the syndicate changes on your with your basis and that's a lot.

[laughter] in light of the increasing competition in the industry.

We decided to focus on the destruction of such a short term gains and instead focus our attention on the.

Finally, our operational efficiency and the bolstered by the way.

News during the quarter, we of course elaborated congressional agricultural providers to create innovative products and the further promote to leave authorization on from raw errors and made our of streaming show different.

We continue to study of the loss towards the healthy profitability during the sort of quick of from taking the reduced our next Ross true.

43.6 million from day one.

And on streaming the.

Now take a closer look and I will finish our total revenue as you sort of quote on from 21, and probably won't get it revenues from the sales of merchandising and so the court of from 21, So punch Marty true good and compared to 2.427 billion and accounted for 84.2% of of total revenue streams period.

The decrease was due to the transfer of finished 12 month, Chris business model, which was the line we saw continuous efforts to improve our operating efficiency and operating efficiency of our merchants revenues from our market, Chris and yes, you sort of caught up and trying to increase the true 130.4 million from 86.3 million.

This increase was driven part and increase in the number of course, the branch and the merchants on our price book. It was also due to the higher to agree that the we got good Marcos trends and our existing partnerships with sprint and the leveraging our growing community and for us to attract new brands Joe platform.

Revenues from our membership program, you sort of caught up from 24.9 million compared to 206, plus and meeting and holding consisting of two for the revenues from part of paying members and language. So on long term gross printers.

The decline was due to the requirement of of membership in the Roman system, which allows users to purchase the all while the job as members of the insured membership benefits free of charge. The full year gross margin of the second quarter of and probably will probably mark on the farm zone.

Compared to 17.8 share this increase was due to the higher gross margin.

The men, which put us on the we introduced the in the quarter Oh, you prove the substitute structure and enhanced operating efficiency.

Now turning to our operating expenses fulfillment expenses and use of course of on kind of decreased apart from the folks and.

True Archie point Fivemillion. This decrease was mainly due to first reduce the warehousing the logic of expenses.

[laughter] because the result of low on which is our sales and increased the lottery ticket efficiency sake, and the reduced the sort of party payment of transaction fees due to lower commission rates and the suit locus of new cost due to headcount from our vision.

Sales and marketing expenses with quota on to the decreased the part 42.

Two point, Fivex, and 258 or nine driven part of the decreasing incremental and features will continue to improve the efficiency of our member of management operations to.

The the knowledge and the content expenses, you sort of quick on 20 decreased by 53% to what's the 2.3 million from 90.1 million. This decrease was willing to two hours.

Your next question operator contract terms with our silver provider, which helped to reduce our sort of courts and the partially due to the decrease in personnel costs. The result of critical optimization general and on the maturity of expenses sort of caught on to the decreased.

The 2.6% to prove to work on 8 million of whom on matching of total revenues from 63.7 million. The decrease was mainly due to the continuous operating headcount optimize the issue.

[noise] of all total operating expenses of sort of quota of confronting decreased the barn, 46% to 343.6 million from 636.4 million. This decrease was driven by the continuous improvements to launch a true efficiency, our ability to secure better punish of terms and increased the member of management.

Sure.

Which resulted from our continued growth.

And of service and mention range.

Relationships most from accretion of seeing sort of caught on confronting decreased to 24.4 million from 118 million and sourcing so the cost of content and decreased to 40.

43.6 million of from two of 1.3 million of constitute the net proceeds of quarter of computing was.

So the 6.4 million.

And compared to 24.9 million basic and diluted net loss per share of attributable to ordinary shareholders and sort of quote on quote so on so to compare true.

Yes, so consulting the simple to of Plenti. My team now lets also take a look at our cash and the liquidity positions during the quarter, our ability to maintain a host the level of working capital despite of.

Michael how do we saw and certain cases of should enable us to support the operational and liquidity of democracy as of September 30, and.

The team had a total of 1.2 billion in cash and cash equivalents mixture of cash and short term investments all balance sheet.

Going forward, we will continue to try and develop.

Development of co CIO marketplace and the much of our sales finished we also plan to leverage the strength of our value proposition of for users of providers and the support us to launch new initiatives and developers more cross Preneed cemetery sales through the flow.

Oh, Yeah of partnerships looking ahead, we remain confident cease gross strategist will enable us to bolster our coke from interest at a steady pace on.

Element of our overall profitability and the continued laser foundational for our hosted gross and the future profitability of our on true.

This concludes our prepared remarks today I'll put the we're now ready to take of questions. Thank you very much ladies and gentlemen, and now.

Okay and the question the loss of session on.

The question on the phone please press star one ton of phone and weaker.

Named depend on.

If you wish to cancel the request please press the pound or cash.

You may ask the questions and mentoring and repeating the question.

What's the came to US question. Please press star one.

Yes, so silence of my questions on being conducted thank you.

Yes, no question.

And at this time I would like to turn the call back to management for closing.

[noise] [noise] and couple of drilling of the day piece and not hesitate to contact accounts. If you have and by the question and are we looking forward to talking with the next quarter.

Ladies and gentlemen that does conclude the conference for today. Thank you for your participation you may now disconnect the lines.