Q2 2021 Yunji Inc Earnings Call
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Based on Kodak's interaction and our social.
Seo sharing engaged marketing model.
Our completion and healthy lifecycle the cycle starts with the product selection promotion by our service managers and a purchase facilitation and allow our service managers benefit from promotional incentives our members have a better understanding of the program.
Regarding <unk> the service managers introductions received cost effective products that satisfy their needs establish trust with Bg's platform and our sharing based model and conduct of repeat purchases. Meanwhile, our service managers will earn income by delivering services common prosperity has.
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To create more user.
Value and offer products with better quality, we remain focused on three core strategies highly curated product selection differentially, a supply chain and especially like the retail season.
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Founder Chairman, who yet murdoch's venture in May 2021, we launched <unk> 19, nine special sales portal.
Our LNG app as one of the core product for our curated product selection strategy aiming to become deepwater format heat products across all of the Internet.
Our <unk> 99 total finalist our platform's core traffic to our refining is collection of demand heat products across all categories. The addition of this section reinforces our refining supply chain strategy as well as the cultivation of the Mac heater pride ourselves by connecting ranging.
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In June 19, nine special sales photo Ctrip, a curated selection of spend up to 99 product.
Each day need 99 product vigorously screened and selected through strict criteria and our basic product pool selection process of the 99 product. The top 10, best sellers will be heavily recommended and providing them with more resources support providing such high.
High quality brands and affordable prices enhances between G shopping experience and encourages purchases, we will continue to optimize our credit selection and utilize data driven insights to income the into shopping experience and provide our users with a true one stop shopping solution.
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As for our differentiated supply chain strategy. We recently celebrated the 11th anniversary of our private label skin Catherine solar life by utilizing our social sharing capabilities, we have help so wise to various brands.
Land value and accumulate a.
A large group of them loyal users over the years by the end of 2020 Solarize had become a skin care brand with annual sales of more than 1 billion guidance.
On the LNG platform and cultivate multiple mega heat products with hundreds of millions in unit sales within our Differentiators.
The supply chain metrics. We've also introduced a number of unique project in various categories. For example, the first batch of our newly developed a line of beauty brings which included 85 CRM product was sold out within test and 57 seconds of at lunch. We are currently optimizing production.
Production capability capacity and are shipping speed and look forward to these product lines performance. After our production capacity has improved.
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Initiatives, we have taken to utilize our specialized retail and online traffic.
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Lehman, we trained our service managers to deliver professional services to our members and help that they can gradually in a decent monthly salary of tens of.
The balance of the RMB down not only service managers, but also assets in various fields that entrepreneurs, who help for a change in their lives we offer them. Many training programs in areas, such as health management and marketing so that they can become experts in the fields of our cosmetic house nsls.
This training enable them to reach customers with a more professional attitude and improved marketing skills deep professional hockey Skus are practical in used and also boost our sustainable development going forward, we hope that more leaders will emerge from within our service manager group and we will focus on supporting these leaders.
Leaders, while making our specialized retail and more complete and efficient.
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Maintain the entrepreneurial spirit and are continuing to conduct innovative initiatives in terms of user retention, we set up a special group to better reach users engage in activities that in a sense then users' consumption frequency.
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It sounds in tissues in retail represents I would agree with that I will turn the floor over to Mr. Cheng Cheng, our vice President of finance to go through the financial results.
Thank you Satya Hello, everyone before I go through our financial results.
Please note that all numbers stated are you following remarks argued reminbi terms.
And all comparisons on a percentage change.
Over a year basis, unless otherwise noted.
Starting this year, we are committed to enhancing our supply chain differentiation strategy.
Upgrading old product.
Our selection was our domestic product curation strategy and the refining our membership the measurement system.
We have also shipped to our mindset to focus on sustainable long term growth as we further improved our efficiency other employee structure.
After several quarters of adjustments our refine.
Mine operations have resulted significantly improvement in our profitability. Despite some fluctuations in our quarterly sales.
This quarter, we recorded operating income of $15 million net income of 17 million.
Compared with operating loss of one <unk>.
5 million the net loss.
Loss of $70 million in a year ago.
No.
Closer look at our financials.
Total revenue was 571 billion compared to 1400 <unk>.
<unk> 7 million a year ago.
Revenue from.
Sales of merchandise.
$473 million and revenue from our marketplace business.
$8 million.
In line with our renewed long term growth strategy will further optimize our philosophy of suppliers and the merger.
Which cost.
It equates in both our marketplace business and the merchandise sales during this quarter.
As a result gross margin improved to 75 million, a 17, 5% page compared to a 1929 percentage a year ago.
During this quarter, we improved our operating.
The revenue are carefully selecting cordless acquirers in the.
Product.
We removed certain product to a more included two based pricing and the subsidy of competitive competition and focus on our depreciation supply chain and <unk> product offerings.
As a result.
If the gross margin improved accordingly.
Turning to our operating expenses.
Fulfillment expenses were $10 billion of 8.8 percentage of total revenues.
Compared to $100.9 million or eight seven percentage.
Total revenue a year ago.
Sure so on the marketing expense or six tier 1 million compared to $228 million a year ago.
Vantage of total revenues.
Marketing expenses were reduced to 10, eight percentage from $15 or percentage.
Over the same period last year.
This decline was due to decreased business promotion expenses, and then reduced amendment management fees, resulting from the improvements of our member management efficiency.
Technology and content expenses was 32 million or five 7%.
Of total revenues compared to 59 million or three 9%.
Total revenue a year ago.
General and administrative expenses, what is revenue this or seven 5% of total revenues.
Compared to a $71 million.
A four 8% of total revenue a year ago.
This decrease was mainly due to a decrease in share based compensation expenses.
Total operating expenses in the second quarter decreased to $187 million.
We recorded an income from operation of $16 million.
When compared to a loss of $45 million a year ago.
Net income was $17 million compared to a net loss of $70 million a year ago.
Adjusted net income was 24 million compared with 20 million year ago.
Basic and diluted net income per share attributed.
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Zero points, there one compared to basic and diluted net loss per share attributable to ordinary shareholders of one <unk> in the same period of 2020.
Moving on to liquidity.
As of June 30 ton Hittite here, one we had a total of $1.1 billion in cash cash equivalents with plenty of cash and short term investments.
Our balance sheet.
Our liquid assets was sufficient enough to cover our payable obligations and though we did not hold.
And then long term bank loans or debt on our balance sheet.
As we continue to execute our supply chain depreciation and product to regions that strategy will remain focused on our long term growth objectives and the profitability.
We are confident that our innovation strategy.
That hedge at the refining operation capability will continue to drive our sustainable development going forward.
This concludes our prepared remarks for today operator, we are now ready to take your questions.
Thank you.
Ladies and gentlemen, we will now begin the question and answer session.
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Then repeat your question in English for the convenience of everyone in the call.
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Yeah.
Once again, please press star one should you wish to ask a question.
Once again to ask a question you May press star one on your telephone.
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Presenters please continue.
So for anyone who would like to ask question Leach breast star one on your telephone keypad.
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Presenters are management fees continues.
Yes.
Thank you for joining us today, please do not hesitate to contact us. If you have further questions and we look forward to talking with you next quarter. Thanks.
Thank you, ladies and gentlemen that does conclude our conference for today. Thank you for participating you may now all disconnect.
Yes.
Okay.
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