Q4 2021 Yunji Inc Earnings Call
Good morning, and good evening, ladies and gentlemen, Thank you and welcome to Union G fourth quarter 2021 earnings conference call with US today are Mr. Cheung, Lucielle, Chairman and Chief Executive Officer, Mr. Cheung Chief Zhang.
President of finance and Mr. K to do Investor Relations director of the company now I would like to hand, the conference over to our first speaker today, Mr. Cailloux I O D of Yoon Jae. Please go ahead maam.
Hello, everyone welcome to our fourth quarter, two guns and he wasn't earnings call before we start. Please note that this call where content forward looking statement within the meaning of private Securities Litigation Reform Act of 1995 that are based on current expectations and current market operating conditions and relate to events that involve.
I'll now risk uncertainties and other factors, Okay do you see any industry.
These forward looking statements can be at the new firefighter immunologist, such as well expect anticipate continue or other similar expressions, but these are discussions of history and uncertainties. Please refer to our release documents filed with U S. S E C.
Any forward looking statements that we make on this call are based on assumptions as of today and that would be perfect qualified in the entirety by closing these statements risk factors and details of the company filing with SEC.
He does not undertake any obligation to update these statements except as required under applicable law.
With that I will now turn it over to Sandra Zhang Chairman and CEO of Inc.
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Florida attorneys on Q1 earnings call today, I will summarize our strategy execution during the past year and discuss the outlook for its continued implementation in the coming year.
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We are acutely aware that consumers need to be more precisely targeted and segmented.
Given greater peace of mind.
At the same time, we realize that our service managers need to increasingly focus on serving our users as such we have lunched, our highly curated product selection thinking 99 special sales portal.
18, 99 portable displays no more than 99 cost effective products per day, each of which is guaranteed to be in line with current trends meet users' needs and consistent with our high product selection standards.
In addition, our product duration model allows us to more efficiently operate our platform and community groups.
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During 2021 we calculated our user my site ounces gather at Vinci going forward, we hope that that form will be known for quality products gather at N T.
By effectively executing our product curation strategy, we guarantee that only products that reach the highest standards necessary to be certified in key quality products are launched on our platform.
We always put quality first carefully selecting superior products for our customers, while saving them time any housing their shopping experience.
Doing so we are developing our user much sign of quality products together editing T.
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Our private label strategy is crucial for us achieve healthy profitability.
We have made substantial progress developing our private labels, especially for our food focused strategy.
At the same time, we have 45 and extended our cosmetics and health care categories with our foods category as our focus our dream is for our members to be able to eat delicious food from all over the world without having to leave their homes.
To allow our users to it happened when safely we have launched multiple new private label such as purely positions, we found him and natural and nutritious Baidu has shown our private label foods are targeted at different user cohorts, but they share the same philosophy to make you feel safe well eating food.
I can share with your whole family.
The success of our selection of branded products is demonstrated by their high repurchase rate.
To build on this success this year will accelerate and enhance our development of new branded food products.
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On the cosmetics friends, we have successfully launched a number of new product lines.
Our sealy brands.
Additionally, several cleared products are certified to be registered as a medical device by the national Medical products administration.
And can therefore be used in cosmetic surgery applications.
So he is new product lines will satisfy more diversified consumer needs and give them increased filling of assurance.
And then it's really a brand we have developed multiple new products by integrating new technologies from Switzerland, and the USA among.
Among this oh, Hello, Ronnie athletes facemask wasn't infant heat generating 10 million RMB in sales revenue within 15 minutes of its launch for.
So the more we have a variety of new skincare and cosmetics products in the pipeline that are due to be launched in the next few months.
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Now, let's turn to our health care had the great honor.
Our previous successful experience in weight management products, we have extended the concept of health products gathered Vinci and upgraded our health care brand seems me out which generates billings in sales per year, we further augmented our product offering matrix to better satisfy the health care needs.
Female customers in three dimensions weight management, skincare and body revitalization mulch.
Multiple products have achieved tens of millions in sales within only a few miles of their lunch.
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We have always hope that our private label products will also be available to purchase through external radio channels.
During 2021 we prepared for and explored how our new and traditional private label could be a retail other platforms.
This year, we will accelerate our pace and to take the necessary steps to integrate our supply chain with manganese platforms, including but not limited to streaming platforms and e-commerce platforms. We.
Hope that the external platform traffic can be directed to our private community groups further enhancing our brand awareness and competitiveness and in turn generating ever greater profits for us.
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The promotion of our private label brands is dependent on our service managers and the vertical specialization that they bring to rate to retail for a long time, we have been empowering women and helping them improve their lives.
Over the past few years, we have been delighted to see that the lives of those of our civic managers, who are mothers have become better and better we see our service managers as entrepreneurs and we hope to develop even more excellent entrepreneurs by cultivating their capabilities in their specialized diffuse.
Well, we are dedicated to generating income for our service managers. We also provide professional knowledge training for those who are mothers.
In addition, we promote a healthy and beautiful lifestyle, which satisfies our service managers material and the psychological need.
The development of our verticals, especially food cosmetics and health care enables us to further segment our community groups.
Importantly, our increasingly segmented user groups and our emphasize on all the quality products get Edwin G will improve the promotional efficiency of our service managers.
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With that I will turn the call over to Mr. Jun Zhang our vice President of finance to go through the financial results. Thank you.
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So he was telling me yeah, Hello, everyone before I go through our financial results. Please note that all numbers stated here that in the following remarks are in renminbi terms.
And all comparisons on a percentage change on a year over year basis, unless otherwise noted.
During the first quarter, we sustained our strategy of raising our product range and the terrible at Curating our products as we continue the execution of our markets product pool program, which focused on expanding our offering of exclusive products and private today.
Books.
It's worth mentioning that as we accelerate the development of our new product and the improvement approach duct pivoted, our private label have made a substantial progress, allowing us to realize the potential profitability.
In addition, our private labels receive excellent reception from the market and to prove to be a great success.
This success.
Black paid by our high repeat repurchase rate, which reached 88%.
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As a result, we recorded operating income of formulas and the net income of 58 million during the first quarter compared with operating loss of <unk> 10 billion and a net loss of 77 million Jaco.
This is our fourth consecutive quarter of non-GAAP measure of appropriate under our first year turning loss to profit.
Now, let's take a closer look at our financials.
Total revenue was 471 million compared to 1003.
327 million a year ago.
Revenue from <unk> merchandise was 399 million and the revenues from our marketplace business was 74 million.
Adhering to our long term growth strategy with a focus on profitability.
Find our selection of mushrooms and their suppliers, resulting in near term decrease in both our marketplace business and the merchandise sales.
Fortunately, our gross margin improved significantly to 40% compared to 26% a year ago.
This increase was due to our continued successful execution of our long term growth strategy and the introduction of more private label products with higher gross margin on the platform and enhance the operating efficiency.
Turning to our operating expenses.
Well if your expenses were 47 million compared to 19 three emulator in the same period last year.
Kris was mainly attributed attributable to reduced warehousing and the logistics expenses, resulting from lower merchandise sales reduced personnel cost. If you were to stop restructure refinement and the decreased service fees charged by third party payment settlement platform.
Sales and marketing expense decreased to 78 million from 167 million in the same period of last year.
Of course was due to reduced the business promotion expense and the member management fees.
Technology and content expense were 26 million compared to 40, a formula in the same period of last year.
The decrease was mainly due to a reduction in silver costs and personnel costs as we refine our staffing structure.
General and administrative expenses were 44 million compared to 60 or Formula Yaacov.
This decrease was primarily due to reduced personnel cost as a result of head count.
To amortization.
Total operating expenses in the first quarter decreased by 47% to 196 million from 368 million in the same period of last year.
We recorded a income from operating over 4 million as compared to a loss of 20 million a year ago.
Net income was $58 million compared with a net loss of 77 billion a year ago.
The adjusted net income was 71 million compared with adjusted net loss of six 3 million in a year ago.
Basic and diluted net income per share attributed to ordinary shares will pose through say.
Compared with basic and diluted net loss per share attributable to another ratio four cents in the same period of time till 'twenty.
Moving on the liquidity.
As of December 31, 'twenty or 'twenty, one we had a total of 1 billion cash rent grilling.
Cash and short term investments our balance sheet.
Our accounts payable reduced to 255 million as of December 31, 'twenty or 'twenty, one compared with 400, and <unk> 2 million as of.
San Francisco and 2020.
Our liquid assets were sufficient to cover our payable obligations and though we did not hold any long term bank loans or debt our balance sheet.
You have probably noticed capital market has underperformed and recently however.
However, we remain confident in the company is further growth prospectus.
I've received a proposal from the board, we today announced a share repurchase program under which the company may repurchase up to 10, Timberlake dollar, albeit shifts over the next six months.
Looking ahead, we will continue to execute our strategy upgrade of carefully curation of product through our product pool, you initiate introduction of more product with strong repurchase potential and co pay to private label and exclusive protests we remain.
I'm confident that our strategy to focus on profitability will create drive and sustain our business growth over the long term.
This concludes our prepared remarks for today operator, we are now ready to take a crushing.
Thank you if you wish to ask a question you will need to press star one on your telephone to withdraw your question. Please press the husky what else getting the question. Please state. Your question in Chinese first then repeat your question in English for the convenience if that's one.
On the call.
Please stand by while we compile the Q&A roster.
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Once again, if you wish to ask a question. Please press star one on your telephone.
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Your first question comes from the line of journey Zhang from and he was an individual investor piece ask your question.
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Thank you. So a question in 2021 we have started to work with many advanced manufacturing companies.
Companies in China too.
It's more and more new quality products.
Our products are mainly in.
In such areas as food health care, and cosmetics and do we have explored more.
Quality products that have a large market.
In China and that also cost effective.
All of these products we have for them.
Tackled the influence of the downturn of the economy.
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We believe that in the next 10 years.
The Chinese consumers will have a greater demand to upgrade their consumption.
For Lindsay on our supply chain, we will continue to explore more of a quality products that are also cost effective.
And we believe that this will meet the demands of nearly one third of Chinese families.
At the same time, we will also make 10 years cycle to further explore more quality and cost effective products and to make a greater contribution to meet the consumers' needs.
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Oh no further questions at this time I'd like to hand, the conference back to the management for closing remarks.
Thank you for joining us today pieces not hesitate to contact us. If you have any further questions. You were looking forward to talking with you next quarter Bye.
This concludes today's conference call. Thank you for participating you may now disconnect.
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