Q4 2022 Boqii Holding Ltd Earnings Call

June 6, 2022

Operator 2: Good day, ladies and gentlemen. Thank you for standing by, and welcome to Boqii's Q4 and Fiscal Year 2022 Earnings Conference Call. Currently all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the floor over to Mandy Luo, Boqii's IR manager. Mandy.

Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to Boqii's Q4 and Fiscal Year 2022 Earnings Conference Call. Currently all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now I will turn the floor over to Mandy Luo, Boqii's IR manager. Mandy.

Speaker 1: Good day, ladies and gentlemen. Thank you for standing by and welcome to Bochi's fourth quarter and fiscal year 2022 earnings conference call. Currently all participants.

Good day, ladies and gentlemen, thank you for standing by and welcome to <unk> fourth quarter and fiscal year 2022 earnings Conference call.

Currently all participants are in a listen only mode.

Speaker 1: Later, we will conduct a question and answer session, and instructions will follow at that time.

Later, we will conduct a question and answer session and instructions will follow at that time.

Speaker 1: As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time.

As a reminder, we are recording today's call.

Have any objections you may disconnect at this time.

Speaker 1: Now I will turn the floor over to Mandy Liu, Coachee's IR manager. Mandy?

Now I will turn the floor over to Mandy Lou Oh, Jeez I our manager Sandy.

Speaker 2: Thank you, operator, and good morning, everyone. Welcome to Bochi's fourth quarter and fiscal year 2022 earnings conference call. Joining us today are Mr. Luis Liang, Chairman and CEO , Ms. Lisa Tang, Co-CEO and CFO , as well as Mr. Kai Fang, our Chief Strategy Officer.

Mandy Luo: Thank you, operator, and good morning, everyone. Welcome to Boqii's Q4 and Fiscal Year 2022 Earnings Conference Call. Joining us today are Mr. Louis Liang, Chairman and CEO, Ms. Lisa Tang, Co-CEO and CFO, as well as Mr. Kai Fang, our Chief Strategy Officer.

Thank you operator, and good morning, everyone I'll come to you of what she is fourth quarter and fiscal year 2022 earnings conference call. Joining us today are Mr. Luis Liang, Chairman and CEO , Ms. Lisa <unk> co CEO and CFO and so I'll ask Mr. Chi Fong, our chief strategy Officer.

Louis Liang: 谢谢主持人，大家早上好，欢迎参加波奇第2022财年第四季度以及全年电话会议。今天参加会议的有公司董事长兼首席执行官梁浩先生，联席首席执行官兼首席财务官唐颖芝女士，以及首席战略官方凯先生。

Mandy Luo: [Non-English content]

So history shows that does our Shanghai plant.

Speaker 2: Sen the rution that does not SHO. How find what they R ling R opyion. This will you do with chion theumma way.

That's what should be I think our opinion is sticky the way your tenure there Holly.

Speaker 2: We released results earlier today. The press release is available on the company's IR website at ir.4q.com, as well as from Newswire Services.

We intend to acquire.

Yeah sure. It's interesting why now how central and he's also taking one casual shoes, how would one time can you ship. It so she's got it okay. Thanks, Sean.

Mandy Luo: We released results earlier today. The press release is available on the company's IR website at ir.boqii.com, as well as from Newswire Services. A replay of the call will be available on the site later today.

We released the results earlier today. The press release is available on the company's IR website at IR adopt what she dotcom as far as from Newswire services.

Speaker 2: A replay of the call will be available on the site later today.

Play off the call will be available on our site later today.

Speaker 2: We hope to see you in the next video. Please subscribe to our channel. Thank you for watching. Please subscribe to our channel.

Louis Liang: 我们今天下午已经发布了业绩公告，可以在公司的IR网站ir.boqii.com或者通过美通社查阅。稍后电话会议的回放也会上传至公司的IR网站。

Mandy Luo: [Non-English content]

And yes, how should we think about eating popular yes, you come about because that's also a I want that and Oregon. Unfortunately didn't come quite a tau made home show us how you shuffle and hopefully they'll play phone yeah question on timeshare after the hour.

Mandy Luo: Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the US Private Securities Litigation Reform Act of 1995, involving inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding this and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement except as required under the applicable law.

Speaker 2: Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. private security certification reform act of 1995. Forward-looking statements involving inherent risks and uncertainties.

Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995 forward looking statements involve inherent risks and uncertainties as such the company's actual results may be much.

Speaker 2: For as such, the company's actual results may be materially different from the expectations expressed today.

Really different from the expectations expressed today.

Speaker 2: Further information regarding this and other risks and uncertainties are included in the company's public filings with the SEC. The company does not assume any obligation to update any forward look statement, except as required under the applicable law.

Other information regarding this and other risks and uncertainties are included in the company's public filings with the S. E. T. The company does not assume any obligation to update any forward looking statement, except as required under the applicable law.

Speaker 2: When comparing BEMC branches out from election those?? Microsoft's gasoline agencies can find the right outcome for their

Louis Liang: 在会议开始之前，请注意今天的讨论将包含根据1995年美国私人证券诉讼改革法案的安全港条款做出的前瞻性声明，该声明涉及固有的风险以及不确定性，因此公司的实际业绩可能与今天表达的预期有实质性差异。有关这些以及其他风险和不确定因素的进一步信息已经在于公司向美国证券交易委员会提交的公开文件当中。除非适用法律要求，公司将不承担任何更新前瞻性义务的声明。

Mandy Luo: [Non-English content]

So what are your cashes attention to what you can tell not tolerant some Balkan countries Joanne Yeah. My boss, John Chan School, So long I go find a chunk on Calpine close without Congesting show Me Guy show me. So do we owe the funds that we're trading team instead of going through the city that yes, the Canadian gem deal that he or she just in case you want to say.

Speaker 2: gashsho ING should your cool or the function you trading into FL, the city, the yes you con you ING can be that you see your shouldrocing entirely your wantes, say you, it happens, pchtring into the suy, puting eating value some junction, Y your the phone and J down or trasure. We also also put from danl burancing Dancing. You would havesho me.

You talked about your book, which hit Angel into the kidney pushing T. Eating Scott are you bullish on Lake Lodge, Osha and tell you where they don't place your telephone calling gen downhole tool. They should in fact, he also holds the jump, which I'm Danielle Brill go see transacting with a show me.

Speaker 2: Please note that certain financial measures that we use on a call, such as adjusted net loss, adjusted net loss margin, EBDAR and EBDAR margin, are expressed on a non-capvasive.

Mandy Luo: Please note that certain financial measures that we use on the call, such as adjusted net loss, adjusted net loss margin, EBITDA, and EBITDA margin, are expressed on a non-GAAP basis. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release.

Please note that certain financial measures that we use on the call such as adjusted net loss adjusted net loss margin EBITDA and EBITDA margin I forgot I expressed on a non-GAAP basis, our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release I'm sure you're teaching.

Speaker 2: Our gap results and reconsulations of gap to non- GAAP measures can be found in our earnings press release.

Speaker 2: The first historian backstage voted in? four ?? to develop these active first picked onemidda

Louis Liang: 同时也提请投资者注意，本次电话会议上使用的某些财务指标，如经调整净亏损、经调整净亏损率、EBITDA和EBITDA利润率是以non-GAAP的形式呈现。我们的GAAP结果以及GAAP到non-GAAP之间的调和请参考最新业绩新闻稿。

Mandy Luo: [Non-English content]

So it's just really consistent than Saddam hopefully you shashi you're one of the most yes, how would you be out routine intelligently placement intelligently seem quite suddenly EBITDA. So EBITDA devalued machine knock off that seems your tone on the captive work you got stopped knockout gender telco contango in Hong Kong.

Speaker 2: irreu ually non gap inshould transsent from the gap air work is the gap, non gap gender calta in Tanga CH Tang out fac seniyears johgot.

Yes go on.

Speaker 2: Also, please be reminded that unless otherwise stated, all figures mentioned during the call are in Chinese???. So why,??????,???????????????????. With that, let me now turn the call over to our chairman and CEO , Mr. Luis Liang.?????????,????.

Mandy Luo: Also, please be reminded that unless otherwise stated, all figures mentioned during the call are in Chinese renminbi.

Also please be reminded that unless otherwise stated all figures mentioned during the call are in Chinese renminbi survival tool filing you'll show me what do you see the NT dollar soil shortfall associated maybe with that way.

Louis Liang: 此外，除非另有说明，会议期间提到的所有数字都是以人民币为单位。

Mandy Luo: [Non-English content]

Mandy Luo: With that, let me now turn the call over to our Chairman and CEO, Mr. Louis Liang.

With that let me now I'll turn the call over to our chairman and CEO , Mr. Luis Yeah, Saturday Ocean, Concord don't adopt downhaul, Cheshire well.

Louis Liang: 下面有请公司董事长梁浩先生。

Mandy Luo: [Non-English content]

Mandy Luo: Over to you, Louis.

Okay.

Over to you Louise.

Louis Liang: Okay. Thank you, Mandy, and many thanks to everyone for joining the call today. Fiscal year 2022 represents another challenging year for every one of us, whether you are from the US, China, or other parts of the world.

Speaker 3: Thank you, Mendy. And many thanks to everyone for joining the call today.

Okay. Thank you.

Randy and many thanks to everyone for joining the call today.

Speaker 3: A physical year, 2022, represents another 20-year year for everyone of us. Whether you are from the US, China, or other parts of the world.

Our fiscal year 2022 represent another challenging year for everyone of US whether you are from the U S China or other parts of the world before we stop no matter, how well you all we appreciate your utmost confidence and support in bucket and the.

Speaker 3: Before we start, no matter where you are, we appreciate your utmost confidence and support in Boky. And we are glad that we were able to deliver encouraging results, despite the frustrating COVID-19 pandemic.

Louis Liang: Before we start, no matter where you are, we appreciate your utmost confidence and support in Boqii, and we are glad that we were able to deliver encouraging results despite the frustrating COVID-19 pandemic. 非常感谢大家参加今天的电话会议，无论您是来自美国、中国还是其他地区，2022年财年毫无疑问都是充满挑战的一年。非常感谢您一路以来对波奇的信心和支持。新冠疫情仍在持续，不确定性仍然存在，但我们还是交出了令人振奋的成绩。Reflecting on our operations, the supply chain disruption in China has no doubt created difficulties to our daily operations and put cost pressure on our fulfillment.

Louis Liang: Before we start, no matter where you are, we appreciate your utmost confidence and support in Boqii, and we are glad that we were able to deliver encouraging results despite the frustrating COVID-19 pandemic. [Non-English content]. Reflecting on our operations, the supply chain disruption in China has no doubt created difficulties to our daily operations and put cost pressure on our fulfillment.

I'll grab that vivo turbo to deliver encourage them to do that.

Pine.

Frustrating Covid 1919 pandemic.

Speaker 3: The election In our pleasure,?", five questions are also asked since the beginning of the Week? alone. Many thanks to you accompany each other in different languages inized world. The decision in our encounter of policy was in progress with China International Time Council, which wrap the revived and autonomous human curiosity. Although the group of peers and life-ications is now a long-term solution, we still have an upstairs limit for both heart and soul. The system has completely turned into a challenge, achieving streams of ?âyout??anov and the following lifestyle. Subsequent local ????? awakening

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But in China, how would you wouldn't doses Kumar Charles on the Union.

Sydney, you Louie what she does change.

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Joshua again something to tell me.

Speaker 3: reflecting on our operations, the self-supply and trained disruption in China has no doubt created difficulties to our daily operations and put close to pressure on our consumers.

Reflecting on our operations to self supply chain disruption in China has no doubt created difficulties to our daily.

License and put coastal pressure.

A few months.

Speaker 3: The original lockdown had also limited spending and affected the performance of the retail market, yet not over negative.

Louis Liang: The regional lockdowns have also limited spending and affected the performance of the retail market.

So there is no lockdown also limit spending and affecting the performance of the retail market, yes, no or negative.

Louis Liang: Yet not all were negatives, as the lockdowns have lead to more time at home, more time with our beloved pets, and in return, delivering the sales of pet products ranging from daily necessities to healthcare, cleaning and grooming products. 过去一个季度中，疫情给供应链造成的冲击，对我们的日常运营带来了巨大困难，履约成本也因此不断攀升。区域性的封城限制了消费，也影响了零售市场的整体表现。但是在封城期间，大家有更多的时间留在家里，有更多的时间与我们心爱的宠物在一起。这些因素都推动了宠物产品的销售，包括日常用品、保健品、清洁用品及美容产品等等。As a result, we were able to deliver a growth in GMV and revenue as well as improve our efficiency and expand our margins.

Louis Liang: Yet not all were negatives, as the lockdowns have lead to more time at home, more time with our beloved pets, and in return, delivering the sales of pet products ranging from daily necessities to healthcare, cleaning and grooming products. [Non-English content]. As a result, we were able to deliver a growth in GMV and revenue as well as improve our efficiency and expand our margins.

Speaker 3: As the lockdowns have lived to more time at home, more time with our belongs, belongs pets and return. And in return, delivering the sales of pet products, ranging from daily necessities to health care, cleaning and grooming products. Go to a few more days, Yixing gave the public and the community to bring our daily life to a greater scale.

The locked off happened to.

Two more time at home more time this all.

The loss beloved pets.

And in return they are leaving the sales of pet products ranging from daily necessarily T core health care cleaning and grooming products of course, when you go to Don King cake, Queen Anne and the team he still woman she's hugging balance sheet up from that.

Speaker 3: You you Su produdown panssome chosing the F on she the selflphic. You TI up here dances F chian. That are you canun' do. Is that jly you is? You want share the home. I ety So, say you. So the three Don not AMP in the Shell also. But who? Some young pin? But Ian P changingyour young pin, don't AMP them.

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So I'll, let him he'd be a chip that does sometimes you Jim.

Although this agenda Johnny you can do this again and she has done.

So if you use those pre donut hole time been the shuttle buggy Park M. P J D.

Yeah.

They've done that.

As a result, we were able to deliver our growth <unk> and revenue.

Speaker 3: As a result, we were able to deliver a growth in GMB and Germany, as well as improve our efficiency and expand our margins.

S improve our efficiency and expand our margins, but more importantly, the pre awhile ourselves on delivering the required pet products kudos large community, despite locked up and supply chain disruptions that would not be possible it could be.

Louis Liang: More importantly, we pride ourselves on delivering the required pet products to the large community despite lockdowns and supply chain disruptions.

Speaker 3: But more importantly, we provide ourselves on delivering the required pet products to the large community despite lockdown and supply chain disruption.

Louis Liang: More importantly, we pride ourselves on delivering the required pet products to the large community despite lockdowns and supply chain disruptions.

Louis Liang: That would not be possible if we are without our extensive in-house facilities and proven fulfillment capability. 正因为如此，我们实现了GMV和收入的增长，同时提高效率，扩大利润率。令我们更加欣慰的是，我们能够在封城和供应链中断的情况下，向广大社区家庭提供所需的宠物产品。我们相信这都有赖于我们一直以来积累的广泛的自有基础设施以及成熟的履单能力。Looking back, we aim to be the reliable and trusted platform for pet parents since day one.

Louis Liang: That would not be possible if we are without our extensive in-house facilities and proven fulfillment capability. [Non-English content]. Looking back, we aim to be the reliable and trusted platform for pet parents since day one.

Speaker 3: That would not be possible if we are without

With all our extensive in house facilities and proven fulfillment capability.

Speaker 3: our extensive in-house facilities and proven fulfillment capability.

Capability.

Speaker 3: That is why we have achieved the growth of GMB and income, while increasing efficiency and increasing profitability. What makes us even more delighted is that we are able to provide the necessary pet products to large communities and families in the event of a blockage of the wind tunnel and supply chain. We believe that this is all due to the wide freedom and responsibility we have accumulated over the years.

Well Mr <unk>.

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Going into two I'm going to take long shot Shang Guang dong. So she's talking she goes so she does well.

Well then something so those will allow you to Eli Tas.

Understood.

Speaker 3: His who's. It is hgsudan luundandly.

So sue you used homes.

On the leap.

Speaker 3: Looking back, we aim to be the reliable and trusted platform for tech parents since they won. And I believe we have done so, especially during the pandemic.

Looking back we EMCORE.

B, the reliable and trusted platform for pet parents since day, one and I believe we have done so, especially during the pandemic. We firmly believe our berry who is much more than a simple.

Louis Liang: I believe we have done so, especially during the pandemic. We firmly believe our value is much more than a simple e-commerce business. As a leading pet platform with extensive product range, extensive outreaching channel, engaging community, and rich content, we have formed an ecosystem that can effectively connect pet parents and industry partners.

Speaker 3: We firmly believe our value is much more than a simple e-commerce business as a leading platform with expensive product range, extensive outreach channel, engaging in community and reach content. We have formed it.

Ecommerce business as a leading pest pressure them.

Expensive product range, if Tennessee, all reaching channel engaging.

Community outreach contact me.

Have fun.

Speaker 3: ecosystem that can effectively connect parents and industry partners. As we continue to close in scope, we believe we are well positioned to capture the leasing products and serve needs for our parents, as well as the marketing needs of the underserved SEMS.

Ecosystem, there can you effectively connect pet parents and industry.

Kind of as we continue to close in scope. We believe we are well positioned to capture the roofing products and so yes for our pet parents, that's about as the marketing needs of the under served and yes.

Louis Liang: As we continue to grow in scale, we believe we are well-positioned to capture the recent products and serve needs for our pet parents as well as the marketing needs of the underserved SMEs。自波奇成立以来，我们一直希望成为养宠家庭信赖的可靠的服务平台。特别是在疫情期间，我相信我们已经证明了波奇的价值和能力。我们坚信波奇的价值远不止是简单的电商平台。作为宠物平台的领军者，我们拥有多元的产品种类，广泛的触达渠道，高度互动的社区和丰富的内容。这些能力都有助于我们建立一个生态系统，有效地连接宠物家庭和行业合作伙伴。随着我们规模的不断扩大，波奇品牌将更有效地掌握养宠家庭日益增长的产品和服务需求，以及中小企业的营销需求。Financially, we are also moving closer to breakeven.

Speaker 3: The original value of the stream, 135,000 Gloria to Carolyn C ?

So Fortunately I want me so she along with some of the young suk jogging. She lidar kokoda organ that Tobey is that he's going to get worse unless you want me.

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Speaker 3: As the leader of pet platforms, we have a variety of product types, a wide range of channels, high-level community interaction, and rich content. These capabilities help us build an ecosystem to effectively connect pet families and industry partners. As we continue to expand our scale, Boqi Brand will more effectively master products and services for pet families to grow day by day, as well as the marketing needs of small and medium-sized enterprises.

Yes.

So it all in the clean water per ton quota, Portugal Pi Jungle show that's on what your uncle judging someone out at that time, She Nicola Shaw you don't talk to each other and Josh Siegel.

Speaker 4: financially, we are also moving closer to break even. We have the utmost confidence that it will facilitate our value recovery and generated shareholder return. This would also provide us the capital to explore other opportunities and go beyond organic growth. Adding further growth impacts to our

Financially we are also moving closer to.

Breakeven, we have the most confidence that it will facilitate our value recovery and generate shareholder return. This also provides us.

Louis Liang: We have the utmost confidence that it will facilitate our value recovery and generate shareholder return. This would also provide us the capital to explore other opportunities and go beyond organic growth, adding further growth in paths to our business. 财务上我们也逐渐接近收支平衡，这也将为我们的股东带来更好的回报。盈利能力的加强也将为我们提供资金，以探索更多的机会，以内生增长以外带来新的增长点。Overall, we remain optimistic in our future development.

Cause capital to explore other opportunities and go be joy awfully close.

Further our growth.

In past to our business.

Speaker 3: Whatever the scale gives the recordings within them will be fulfilled with rules, making them more thorough, and giving the papers that can will the ultimate continue. Through this time, it will become more complex. The present competitor and his foreign secretarypetta are now exposing their own future skills. He has been saying that descent is not a Friendship. He said but that the Finding Emerald sector has required to support each of our partners from the rebuilt

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Speaker 4: Overall, we remain optimistic in our future development. As senior management, we will continue to work with passion while keeping a keen eye on our

Hello, really remain optimistic in our future the better but as senior management, we will continue to work with Pershing, while keeping a keen eye on our.

Louis Liang: As senior management, we will continue to work with passion while keeping a keen eye on our operation as well as potential market opportunities in order to repay your trust and confidence.

Speaker 4: operation as well as potential market opportunities.

Operation, that's about as potential market opportunities in order to repay your trust and confidence let me pass the time to our co CEO Lisa to update you on our achievements during the year. So on that I saw when we relied a photon hello, Glenn enjoy plenty tongue, well Magellan tissue new leasing.

Speaker 3: Let me pass the time to our co-CO, Lisa to update you on our achievement during the year. In this successful???, we are entrusted to??? the careteller to promote the successful performance of the overall band, and to continue developing known heroes to reseal the audience to the audience. Today, I am now presenting the company's latest and latest photos made for Cannes, turning out in the post, again representing the support and interest towards E ao and Lisa as well as? Özteriak. Those who support Norwegian

Louis Liang: Let me pass the time to our co-CEO Lisa to update you on our achievement during the year。总的来说，我们对未来的发展保持乐观。作为管理层，我们将继续努力经营，密切关注公司的运营以及潜在的市场机会，以回报大家的信任和信心。以下时间我交给集团联席首席执行官唐颖芝女士，为大家介绍集团这一年中取得的成就。有请Lisa。

Louis Liang: Let me pass the time to our co-CEO Lisa to update you on our achievement during the year[Non-English content].

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So Jim with you. So she says England Huntington He said when he talked about yourself, you know what I'm seeing in Chongqing Hangzhou ease off.

Lisa Tang: Thank you, Louis. During the year, Boqii has put great effort to enhance its infrastructure.

Speaker 5: Thank you very much.

Thank you.

Doing well.

Speaker 6: During the year, Boise has put great effort to enhance...

Great.

Yeah.

Speaker 2: They include improving our warehousing efficiency, expanding our online marketing capability, increasing our offline top points.

Gotcha.

Lisa Tang: They include improving our warehousing efficiency, expanding our online marketing capability, increasing our offline touchpoints, as well as reaching new collaborations with industry partners on hospital SaaS and pet-friendly stays, all in the hope to better serve our pet parents and branded partners. 谢谢 Louis。在2022财年，波奇积极加强其基础设施的建设，包括提高仓储效率，扩大在线营销能力，增加线下触点，以及与行业合作伙伴促成新的合作，其中包括医院，医院SaaS在内，以及宠物友好酒店方面的企划。这些都希望能够更好地服务宠物家庭和我们的品牌合作伙伴。Supported by our expanding SKU selection of 2,624 this year, a year over year growth of 33.5%, along with our growing brand equity and the introduction of new membership program, we were able to attract new users and boost retention during the year. Our active buyer has increased by 30.4% year over year to 5 million, with the number of orders also increased by 52.5% to 9.8 million for the year.

Lisa Tang: They include improving our warehousing efficiency, expanding our online marketing capability, increasing our offline touchpoints, as well as reaching new collaborations with industry partners on hospital SaaS and pet-friendly stays, all in the hope to better serve our pet parents and branded partners. [Non-English content] Louis. [Non-English content]. Supported by our expanding SKU selection of 2,624 this year, a year over year growth of 33.5%, along with our growing brand equity and the introduction of new membership program, we were able to attract new users and boost retention during the year. Our active buyer has increased by 30.4% year over year to 5 million, with the number of orders also increased by 52.5% to 9.8 million for the year.

Uh huh.

Efficiency.

Pending our online marketing campaign T in creating an offline choctaw points.

Speaker 7: as well as reaching new collaborations with industry partners on hospital sites and pet-friendly states.

As well as reaching your collaborations with industry partners are hospitals that are in the pet friendly space.

Speaker 7: all in the hope to better serve our parents and the brand new partners.

In the house Ciabatta yourself, our pet parents and their brand name partners.

Speaker 7: People lose the an anyan B D towncy she be tidentsure B cootival town, alue kadas. Non, and me since that, since our twoia is.

Okay.

That's our opinion boutique that challenge.

Sure sure.

I'll call. It he is all talk to yourself.

This economy.

I think that with you.

There's a whole bunch, which I'm sure he'd jump I'll quote you didn't.

Speaker 7: To on balul court, even understanding it is me, or have to informity.

He told me Johan.

Sure.

Speaker 7: We recommend that you know the best outcome. Apart from YeaTinks, we offer offer us a content innovation collaboration."

I can't tell you on a go go out.

So with that in home and that's in parallel to all that.

So call it about a lot is fannie excuse to S. P used collection.

Speaker 7: oby hour it's destiny SQ-????

Chinese gets done and 600 and the Chinese law.

Speaker 7: a year-over-year growth of 33.5% along with our growing brand equity and the introduction of new membership program. We were able to attract new users and boost retention during the year.

A year over year growth of 33, 5% and I always tell our growing brand equity and the introduction of new membership program, we were able to attract new users and retention during the year.

Speaker 7: Our active buyer has increased by 30.4%.

Okay.

By has increased by 34% year over year to five minute list. The number of orders also increased by 52, 5% June .

Speaker 7: year-over-year to 5 million, with the number of orders also increased by 52.5% to 9.8 million for this year.

<unk> a minute for the year.

Speaker 7: During the steady growth in the user base, our DMV and product sales also recorded satisfactory improvements.

Lisa Tang: During the steady growth in the user base, our GMV and product sales also recorded satisfactory improvement increased by 19.4% and 17.4% respectively。波奇的SKU选择也不断扩大，达到了两万六千六百二十四个，同比增长33.5%。与此同时，在品牌价值持续提升以及新会员计划的支持下，集团在这一年也吸引新用户及现有用户留存方面取得了良好的成绩。我们的活跃买家同比增长了30.4%，达到了五百万人。本年度的订单数也同比增长了52.5%，达到了九百八十万订单。由于用户群的稳定增长，我们的GMV和产品销售也实现了令人满意的增长，分别增长了19.4%和17.4%。Our community engagement strategy also proved to be a success.

Lisa Tang: During the steady growth in the user base, our GMV and product sales also recorded satisfactory improvement increased by 19.4% and 17.4% respectively. [Non-English content].Our community engagement strategy also proved to be a success.

During the steady growth in the user base.

<unk> also recorded that his Bachelor improvement increased by 19, 4% and the 17th floor plant 4% respectively.

Speaker 7: increased by 19.4% and 17.4% respect.

Speaker 7: The number of SKUs in China continues to grow to 26,624, up 33.5% year-on-year.

What's your guys confusion, we don't call it that bad on that.

She didn't do about Zika comedies and job passenger session. Thank you.

Speaker 7: Should that him my dud institution? Is he singimppo? Until by the trur is up, you CAn't get the indion, is see Sing. Or who he say your, your whole will turn from me to the lay on how to change it. Oh, not who my dad be.

She was that people had died she she tieszen.

She's a few times that the Union E G O.

Fournier will jump on them yet she doesn't know how to change it.

Well monopoly and my dad won't be done job passenger session.

Speaker 7: The number of orders this year has increased by 52.5%, reaching 9.8 million orders.

I don't know bandwagon.

And what I didn't actually at home to Xinjiang that back in June a shot at.

That all that you'll that Ashwin thing that you'll you'll watch the wendy's and shop on the Dnb like him. He's I'll show you should not even I'm not either Xinjiang somebody in central App and you should do.

Speaker 7: Your Y, which is the one decent job. When the D day her temp is all. Show you she nothing Re my E job be. jochild bagenger should go ience her benges.

What about congestion.

Yes.

Okay.

Speaker 7: Our community engagement strategy also proved to be unsuccessful.

Engagement.

Tragedies also proved to be a success.

Lisa Tang: By offering users a platform to discuss, interact, and make purchases, which has become a go-to place for pet parents satisfying their product, service, and social needs. As 80% of pet parents in the PRC are first-generation pet owners, the useful pet care tips on our platform have also made us a good information hub.

Speaker 7: By offering users a platform to discuss interact and make purchases, Ochi has become a go to place for parents satisfying their product, service and social needs.

Offering users a platform to discuss internet interaction and then they can actually see what she has become a go to place for pet parents that is finding that product.

And the social needs.

Speaker 7: and 80% of parents in the PRC are first generation per owner. The useful per care tips on our platform have also made us a good information card.

80% of pet parents in the PRC of lesser generation at Ana.

The useful at that time.

Our platform has also made us agree inflammation.

Lisa Tang: 波奇的社区战略也获得了大获成功。我们通过为用户提供讨论、互动及购物平台，成为了养宠家庭解决产品、服务和社区需求的首选。由于中国80%的养宠家庭都是第一代的宠物主人，我们平台上的养宠知识内容也使波奇成为了一个良好的信息枢纽。Supported by our comprehensive or reaching channels, including APP, mini program, WeChat account and video channel that will give a sticky private traffic as well as third party traffic from search engine Tmall, JD, TikTok and 小红书, which will give a significant volume.

Lisa Tang: [Non-English content]. Supported by our comprehensive or reaching channels, including APP, mini program, WeChat account and video channel that will give a sticky private traffic as well as third party traffic from search engine Tmall, JD, TikTok and [Non-English content], which will give a significant volume.

What's your initial itchy tenure, you know whether or not.

Speaker 7: Go to the shir try, janal Y hold ER like your dar Chun Kong. When we don'tgo away on who don't toand who don't go pin time, chanwea yyoung CH out to the champing. Who her should Che she ER show ship.

You don't watch Hong Kong when they don't go away on who you're going to outline who don't go Kintigh children are young children chatting to dish and T.

Or how should she she told initials yet.

Speaker 7: Because 80% of pets in China belong to the first generation of pet owners, our pet knowledge platform has made BoQi a great source of information.

You'll have to go up I think a daunting passenger bashing catching doshi D that their children will maintain hashana young transfusion needle. Yes, you bought you Tony you go down how does he see Sonya.

Speaker 7: supported by our comprehensive origin channels including OVT, mini-program, which accounts on the video channel. That will give us a sticky private traffic as well as third-party traffic from search engine, T-Maw, JT, TIP Talk, and Xiao Hong Shu, which will give us significant models.

Supported by our comprehensive reaching channels, including E Mini program Wechat account and the visa channel that will give us dk private traffic as well as third party traffic from search engine Tmall JD keep talk and Michelle I'm sure.

Which will give us significant volume we are able to create vibrant ecosystem that you scratch crab categorized by high user stickiness.

Speaker 7: We are able to create a vibrant ecosystem that is characterized by high-user thickness.

Lisa Tang: We are able to create a vibrant ecosystem characterized by high user stickiness, low retention costs, and high sales conversion.

Speaker 7: low retention cost and high sales conversion

Retention costs and the highest conversion.

Speaker 7: Specifically in first quarter our customer acquisition cost has reached a new low of RMB 5.0

Lisa Tang: Specifically, in fourth quarter, our customer acquisition cost has reached a new low of RMB5.7, which highlights the rising stickiness of both brands as well as the effectiveness of our strategy and measures for user acquiring, including the re-redemption membership program. 我们的全渠道布局覆盖甚广，包括了APP、小程序、微信账号和视频渠道，这些都带来了高粘性的私域流量，加上来自搜索引擎、天猫、京东、抖音和小红书的第三方公益渠道的引入，进一步充实了我们的流量池，使我们得以创造出高用户粘性、低留存成本以及高销售转换的生态系统。在第四季度，我们获客成本创下了新低，达到了5.7元人民币，凸显了波奇品牌粘性的进一步提升，以及获客战略的措施的有效性，这也包括了全新推出的会员计划的成功的有效性。This growing stickiness also allow us to do more for our industry partners.

Typically in fourth quarter, our customer acquisition costs or has reached and you know I M. B five point Stephen.

Speaker 7: which highlights the rising thickness of 4G brands, as well as the effectiveness of our strategy and measures for user acquiring, including the prevention membership program.

Which highlights the rising steepness of Blue chip brands as well as the effectiveness of our strategy and the measures we use a acquiring including.

Prevention of membership program.

Speaker 7: Oh the chancechshould put you fugashation guong while Co activities self and she within joh her her shipping she down. She said the GIRL L gunance in the singo down Y lights, those were in. See the amoun T Dong doing herself show the different found going. You should without through see both CH Al the no downshe she the you 't show GIRL you on jow through gun o ions. See T those chamber with GIRL social Jo condition time it home.

The change it up would you forgot Shang guang alcohol Atg shall change she wishes John Hall shooting shoot all she said look I know going into the sea.

Josh on the stills lean she Tim Martin Daum, do English, although I'm sure that T cell phone coinage, you don't need two people to show them that no one else yet.

G. Though you cant show them until you're trailing John Shaw gallium opinion.

And then you go sell she'll jump one ish entice you at all that do you since you do women Holdco champion trial, and soundness, Indeed, I dunno in Chile, I mean, Pete.

Speaker 7: That isen you do woman hoker chamberion transan an and in the the dollar would the C may be two LL worta finan in ner Ity potusion. Is you wholeokker januine, to shooar yourself in pay about coer chancing to a through the way and father chungunthe.

What's your COVID-19 petition you woke up January and that's what we're shooting at South deep.

Yep I'll call attention to each one of them clean in Tijuana.

I'm gonna chunk on the chassis.

Speaker 7: This growing business also allows us to do more for our industry partners.

He's growing his business and also allow us to do more for our industry partners.

Speaker 7: as the brand-new partners often lack cause effective marketing solution due to the unspecified traffic mix of other e-commerce platforms. Bo Chi, with a group of closely-chied parents, represents a much more effective marketing channel, especially for small-to-missile brand-new partners.

Lisa Tang: As our branded partners often lack cost-effective marketing solutions due to the unspecified traffic mix of other e-commerce platforms, Boqii, with a group of closely tied pet parents, represents a much more effective marketing channel, especially for small- to midsize branded partners who have limited budgets in marketing. By riding on our rich user base, user database, and transaction data, we can also provide marketing intelligence to our branded partners so that we can make swift business decisions in this product mix and the supply chain.

Our branded partners often in that cost you in fact hit marketing solution due to the <unk>.

Specifying the traffic mix of other e-commerce platform.

But she leads that group of close my childhood pet parents represents a much more effective marketing channel, especially for small to mid sized branded partners.

Speaker 7: who have limited budgets in marketing by writing on our rich user base, user database, and action data, we can also provide marketing intelligence to our brand new partners.

Who have limited the budgets in marketing I'm, writing, Oh enriched user base user database.

And then actually in data we can also provide marketing intelligence to our branded partners.

That weekend.

Speaker 7: makes swift business decisions in this product mix and supply chain. As a result, we were able to deliver remarkable 5.3 times the over-year increase in the revenue from online marketing and information services. Raching RMB 49.1 million.

Make swift business did you see in this product and the supply chain.

Lisa Tang: As a result, we were able to deliver remarkable 5.3 times year-over-year increase in the revenue from online marketing and information services reaching RMB 49.1 million。不断提升的粘性也使我们成为了为行业合作伙伴带来了更大的价值。由于大而全的电商平台的用户画像并不精准，宠物行业的合作伙伴往往缺乏具有成本效益的营销推广方案，而波奇恰恰拥有精准且高粘性、高互动的养宠用户，营销的效益会变得更高。尤其对于营销预算有限的中小品牌合作伙伴，这成为了一个非常重要的突破和价值提供。通过波奇丰富的用户和交易数据，我们还可以为品牌合作伙伴提供市场情报，使得他们能够在产品组合和供应链中快速地做出制胜的商业决定。因此，我们的在线营销和信息服务收入同比增长了5.3倍，达到四千九百一十万人民币。We will also like to bring to your attention to that our private labels have made good progress during the year.

Lisa Tang: As a result, we were able to deliver remarkable 5.3 times year-over-year increase in the revenue from online marketing and information services reaching RMB 49.1 million. [Non-English content]. We will also like to bring to your attention to that our private labels have made good progress during the year.

The results, we were able to deliver remarkable five points three times year over year increase in revenue from online marketing and information services, reaching a M b $49 1 million.

Speaker 7: The young person is also a part of a group of partners that become the focus on the partnership between the two They have a satellite screen-where rise-up form that is hurry Renault's partner is aiming at its role as a product of greater effect Comp otur fuegoky In addition, they are willing to fight forward the potential and improve This strategy has a sunny better impact on their need for higher effect??

Well don't you shouldn't see any issue them in China with hydro one that had been done attached.

Dodge and again jumping to how do you know why some people Tianjin, Shanghai, and Hangzhou, and Wawa chip and Jo jump and sell you the email too long fine I've watched you attach how you're only or Tianjin Shandong in golf, we don't know yet.

Each other's tell you within a googol Yoshi D. L E N. The jewelry shopping pathogen and Jojo why don't you go fish hung Chung Yang Tupac attach it should go down go up what's your pump with a young who I tell you should use when the high clay your way from Paclitaxel and she Moshe trying to tease out she downtime and they'll go to edge him into Hong Kong.

Speaker 7: In order to provide a very important? and insight in it, through both manual and additional information and sewing technology, we still can provide ran-on compartments with ?-NM group and business information exhibition on scientific and

Yeah, and John quite soon.

And Ah shall hear J D.

Speaker 7: terms of the policy of tax

The testing so I think she food bushel, Tobey Xinjiang I'm getting something out off potential that you should I can be.

We will also like to bring to your attention to that to our private labels have made good progress during the year. It's S. <unk> grew by 59.

Speaker 7: We will also like to bring to you attention to that our private labels have made good progress during the year. It's SKU group by 59.4% to 5,600 and 40%.

Lisa Tang: Its SKU grew by 69.4% to 5,643, and the revenue also grew by 15.8% year over year to RMB 42 million in this quarter. Gross profit margin of our private labels also reported a significant enhancement from 26.9% last Q4 to 33.4% this Q4.

4% to lifestyle and in this country and the 43 and the revenue also grew by 15, 8% year over year to RMB.

Speaker 7: and the RAMU also grew by 15.8% year-over-year. Should IMB 40%

42, many of these call them.

Speaker 7: Both Prof. Margin of our private labels also reported reported a significant impact.

Gross profit margin of our time.

Labor was also reported reported a significant enhancements from Chinese six 9% last Q4, two so that is really a plus 4%. These careful.

Speaker 7: from 26.9% plus Q4 to 13.4% this Q.

Lisa Tang: 值得留意的是，我们的自有品牌在这一年也取得了良好的进展。其SKU增长了69.4%，达到了5,643个，收入本季度同比增长了15.8%，达到了4,200万人民币。我们的自有品牌的毛利率也取得了显著的提高，从去年第四季度的26.9%，提高到了今年第四季度的33.4%。Financially, the growth in the product sales and online marketing and information services have brought our revenue to a new high of RMB 1.19 billion, up 17.4% year over year.

Lisa Tang: [Non-English content]. Financially, the growth in the product sales and online marketing and information services have brought our revenue to a new high of RMB 1.19 billion, up 17.4% year over year.

Speaker 7: Children you either, only you OP India year children how the team joh yes, can you turn. joh about jial students D dollar will tell you back to Al cent. Girls show open to the homeompies. Jo about Y show bar dollar City number by.

Jugal either shoot when knits, you'll keep that union and yet she doesn't know how to Jean Jacques.

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Speaker 7: Let OK an should do through the tigal tunction. dicity to the backgrjosh ENT. Jo, he got icity to the back session.

He got an opinion piece that you do.

Without that and she says she opinions.

Financially the growth in the product and the online marketing and information services.

Speaker 7: financial aid the growth in the product sales and online marketing and information service.

Speaker 7: have brought our revenue to a new high of RMB 1.19 billion.

That brought our revenue to a new high of I M. B, one punch when I've been here.

Speaker 7: up 17.4% year-over year. As we continue to grow in scale and the GMV, as well as factoring in the high-modeling natural of our online market environment.

Up 17, 4% year over year as we continue to grow in scale and the G. M D as well as factoring in the.

Lisa Tang: As we continue to grow in scale and the GMV, as well as factoring in the high-margin nature of our online marketing business, our gross profit margin and the post-fulfillment margin also reported a record high of 20.5% and 9.2% for the year, respectively. Laying a solid foundation for future turnaround, we are confident that we will achieve breakeven in the coming quarters.

High margin natural off on the online marketing business.

Speaker 7: Our growth profit margin and the post for film margin also reported a record high of Chinese

Our gross profit margin and the possible film imagine also reported a record high of Chinese <unk>, 5% and nine point to present for the year respectively.

Speaker 7: and the 9.2 presents for the year respects.

Speaker 7: We are confident that we will achieve break even in the coming colors.

I saw in enough on that foundation of future turnaround. We are confident that we will achieve breakeven in the coming quarters.

Speaker 7: cali fornia, though you Che itselfll show her 10 since, since in cel is sinceive will show the turn child woner to show LO can be ITT, child bamish.

Lisa Tang: 财务方面，得益于产品销售和在线信息营销及信息服务收入的增长，我们的总收入同比增长了17.4%，达到了人民币11.9亿元的新高。随着品牌规模和GMV的持续增长，加上在线营销业务的高利润等特性，我们的毛利率和履单后毛利率也分别达到了20.5%和9.2%的历史新高，为未来的扭亏奠定了坚实的基础。我们有信心在未来的几个月，公司能够实现收支平衡。Now I will turn the call over to our CSO, Kai Fang, who will share more details on our financials and future strategy.

Lisa Tang: [Non-English content]. Now I will turn the call over to our CSO, Kai Fang, who will share more details on our financials and future strategy.

California and believe your Chinese social I think it seems in south you can see for sure the Xinjiang well, let him shoulder with MPS in Shanghai vanquish opinions that already I mean be she didn't you'll even single digits Parkway Moore M. D. C. Jinja, Josh on Kashi tell you without gala event until I see women the mountain Dew Honda you don't.

Speaker 7: Please refer to the post pages where we read each report on the development in blogs.

How long do you need somebody that all of them Josh.

How about can you do with your other niche you can go without a new acquaintance imagine she got usual well meal teachings that weird I disagree that costa negotiating Shuja pizza hut.

Speaker 7: And now I will turn the call over to our CSO platform Who will share more details on our financials and future strategies Kai

And now I will turn the call over to Oh, I see I saw cat phone well share more details on our financials and our future strategy.

Lisa Tang: 现在我将把未来时间交给我们的CSO方凯，请他分享一下关于我们的财务状况和未来战略的更多细节。有请方总。

Lisa Tang: [Non-English content]

Hi.

Speaker 7: Think there were dum bashes where I should then tellgget woman the stairs So Funk Hat in intervent. Why woman is how a Drunk her? Where I J to condudo City. Here your team found out.

Since that would jump bashing, whereas she didn't they'll be able to understand Dolph on cat <unk> chip.

She has been signs that language and that's how we're drunk.

Generally they've been doing.

Uhm bundle.

Speaker 8: Thank you Lisa. In the following, I'd like to share more from our financial performance for the year. Depies of supply chain disruption and the cost of much difficulties brought by COVID-19 with due diligence drawn results in the year, with a steady growth from four quarters. Thank you Lisa. I'd like to share more with you in the next episode of the Chinese TV show.

Kai Fang: Thank you, Lisa. In the following, I'd like to share more on our financial performance for the year. Despite the supply chain disruption and the market difficulties brought by COVID-19, we still delivered strong results in the year with a steady growth from all four quarters.

Thank you any thoughts following up right.

I will share more on our financial performance.

For the year, despite the supply chain disruption.

Hum market difficulty brought by COVID-19.

Strong results in the year with steady growth from or four quarters. So is there anything to call out without getting died off and John can talk on any board seats.

Kai Fang: 谢谢 Lisa。接下来我想跟大家分享更多关于波奇在本季度和本财年的财务表现。尽管新冠疫情带来了供应链的中断和消费市场的中断的挑战，但我们这一年仍然取得了令人鼓舞的业绩。那四个季度都有着稳定的业绩增长。Our full year revenue grew 17.4% to RMB 1.2 billion, with notable increase in revenue from online marketing and information service. Gross profit was RMB 242.7 million, up 29.6% from the fiscal year 2021.

Kai Fang: [Non-English content] Lisa. [Non-English content]. Our full year revenue grew 17.4% to RMB 1.2 billion, with notable increase in revenue from online marketing and information service. Gross profit was RMB 242.7 million, up 29.6% from the fiscal year 2021.

And so you do have been opinion that how about you.

Speaker 8: iteenthink. one think: why E that in Trans and for salvation town, the transan, a georga, that woman, that Union to the linear and go yet SUT to do yoga. wenting year de end.

Why do you why do you think that are going on you know Trinidad.

South Asia kind of going down that route that element that opinion.

Yeah.

So got you do adult yoga went in the tender offer for your revenue grew 17, 4% to RMB, one 2 billion with no increase in revenue from online marketing and the information and service gross profit.

Speaker 8: Our first four-year revenue grew 17.4% to IMB 1.2 billion with no-bought increase in revenue from online marketing and information service. Cross-Profil was IMB 242.7 million up 29.6% from the fiscal year 2021.

Hi M V 200.

42.7 million up 29 point of 3% from the fiscal year 'twenty or 'twenty one.

Speaker 8: and growth model driven by the increasing product GPM and growing contributions from online marketing and information service was 20.5% up to 500 basis points.

Kai Fang: Gross margin driven by the increasing product GPM and growing contributions from online marketing and information service was 20.5%, up by 200 basis points.

And gross margin driven by the increasing product G. P M.

Growing contributions from online marketing and information services.

<unk> was 25%.

By 200 basis points.

Speaker 8: Our annual revenue has increased by 17.4% to RMB1.9 billion. Among them, our network marketing and information service revenue have increased significantly. This year's gross profit is RMB2.43 billion, which is 29.6% higher than the year before.

Kai Fang: 我们的全年收入增长了17.4%，达到了人民币11.9亿元，其中我们的网络营销和信息服务收入有着明显的增长。本财年的毛利为人民币2.43亿元，对比21财年是增长了29.6%。我们的毛利率在产品毛利的增长以及服务收入贡献不断增长的推动下，达到了2.5%，跟上一个财年相比增长了200个基点。Our total sales and marketing expenses were RMB171 million, up by 6.7% from RMB162.6 million.

Kai Fang: [Non-English content]. Our total sales and marketing expenses were RMB171 million, up by 6.7% from RMB162.6 million.

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Speaker 8: On the morderning is chamany modiattor and John T foral R ANS the inputs and on the kill dollar in.joy, you can shine your penion down, beat and JAL back ER to the.

And then ordinary time.

And then Johnny team Fortunately, we welcome Tim Hortons into on the ticket on that dollar back in jobs.

And so you've got 10 year gummies and John .

Yeah.

Speaker 8: Our total sales and marketing expenses were IMP 171 million up by 6.7% from 162

Our total sales and marketing expenses.

RMB 117, and 71 million.

Up by six 7% from 162.

Speaker 8: and 60.2 million sales and the marketing expenses as a percentage of total revenue was 14.4%

And I think the point to a media sales and marketing expenses as a percentage of total revenue was 14.4% down from.

Kai Fang: Sales and marketing expenses as a percentage of total revenue was 14.4%, down from 15.8% from last year, mainly due to the lower customer acquisition cost enjoyed from the growing revenue contributions of Boqii Mall, as well as the adoption of more cost efficient channels across our marketing initiatives. Our sales and marketing expenses totaled CNY 170 million, up 6.7% from CNY 160.2 million last year. Sales and marketing expenses as a percentage of total revenue was 14.4%, down from 15.8% last year, mainly due to our customer acquisition cost's further lowering, as well as our Boqii Mall revenue's contribution's growth, as well as our adoption of more cost effective channels in marketing activities. Fulfillment expenses slightly increased to CNY 134 million, compared to CNY 120.2 million in last fiscal year.

Speaker 8: down from 15.8%.

15.8% from last year, mainly due to the lower customer acquisition costs.

Speaker 8: from last year, mainly due to the lower customer acquisition costs.

Speaker 8: enjoys from the growing revenue contributions of both more as well as the adoption of more cost efficient channels across our

From the growing revenue contribution from Baltimore.

The adoption of a more cost efficient channel.

Our marketing.

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And you mentioned he wanted the social good feelings on her way.

B E N T G B Chilean.

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Sure.

Social How're, you doing Jonathan affirmative F&B wave ambitious dancer.

Speaker 8: Y two other aamages. Show backath sure your you woman pocher chamber the T kunte E T woman DDI or suunction and show the can attend Jo, if the woman die, you tell go the run T thepens chamman, Stu it up.

You mentioned you end up having just showed you about Joshua you'll you'll know all cogent Linda Campbell Chunky E woman Daibutsu Johnson as shown with the Oh.

The woman dying to talk with everyone.

<unk> been through 10 minutes, telling you that you don't.

Speaker 8: Fulfillment expenses slightly increased to $134 million.

Fulfillment expenses increased to 100, and they're searching for a minute.

Speaker 8: compared to 120.2 million in other fiscal year. The film inexpensive as a percentage of revenue was 11.3% down from 11.9% in the fiscal year 2021.

At compelling compared to 120.2 million in last fiscal year.

Kai Fang: Fulfillment expenses as a percentage of revenue was 11.3%, down from 11.9% in the fiscal year 2021. Mainly due to the improved utilization of warehouses and lower delivery service price through renegotiation with third-party service providers. As a result, post-fulfillment margin increased to 9.2% compared to 6.6% in last year.

As a percentage of revenue was 11.

1.3.

I'm from 11.9% in fiscal year, 2020 one.

Speaker 8: many due to the improved utilization of warehouses and the lower delivery service price

Mainly due to the improved utilization of older houses and lower delivery service price so really reading.

Through.

Speaker 8: negotiation with third-party service providers. As a result, personal fulfillment margin increased to 9.2 percent compared to 6.6 percent.

And of course, the negotiation with third party service provider as a result, both the fulfillment margin increase of two 9.2% compared to a safety compared to 6.6%.

Speaker 8: in last year.

And lots a year.

Kai Fang: 我们的履单费用从上个财年的1.2亿略微增加至了本财年的1.34亿。履单费用占收入的比，这个财年为11.3%，低于21财年的11.9%。主要是由于我们仓储的利用率进一步提高，以及通过跟第三方物流服务商的供应商的协商，我们降低了交付的服务的价格。因此我们履单后的毛利率也由去年的6.6%增加到了9.2%。General and administrative expenses were RMB76.2 million, down by 33.1% from RMB114 million in fiscal year 2021.

Kai Fang: [Non-English content]. General and administrative expenses were RMB76.2 million, down by 33.1% from RMB114 million in fiscal year 2021.

Speaker 8: commiss ion Y the are was D B tany the E sly finly want to the be home. Tri Y ave Ger she and he are canyion the aamag she and Jo Josh your woman come to the, come for the outteine would he could keep out EAs from T work you can for down to going on the woman down he jol for the for the damper.

Having a strong opinion.

Zero waste in downstream.

And then the ETS Anthony.

It won't change what would it be.

Particular opinion way, but I'm just eating that give you our opinion just sheet Angel Joshua Young woman.

You only redeemable T E.

He can walk us through kind of I don't know if it was on the go and Thomas Mcdonald Gila gel for them without the infill and then hold them. All you do your own opinion.

Speaker 8: In solmen you withoutouforehold the monly new yoldk TRI, ny the aven ields and dado AR avenur joria.

And that all of that I've enjoyed it.

Speaker 8: General and the administrative expenses were IMB 76.2 million, down by 33.1% from IMB 114 million in fiscal year 2021. General and administrative expenses as a percentage of total revenue was 6.4% down from 11.3% in fiscal year 2021. The decrease was many.

General and administrative expenses were RMB 17, 6.2 million done by <unk>.

<unk> three point to 1% from RMB $114 million in fiscal year, 'twenty, one general and administrative expenses as a percentage of total revenue was 6.4% down from 11 point of 3% in fiscal year 'twenty one.

Kai Fang: General and administrative expenses as a percentage of total revenue was 6.4%, down from 11.3% in fiscal year 2021. The decrease was mainly due to lower share SBC expenses of RMB 11.7 million, compared to RMB 42.1 million in the last fiscal year. With all the above, that has led to a narrowing adjusted net loss for the year of RMB 121.2 million, versus RMB 149.6 million last year. As mentioned by Lisa, we are confident of a break even in the coming quarters.

Great.

Speaker 8: due to lower share SBC expenses of IMB 11.0.

Due to lower share.

D C O.

M B.

11.7 million.

Speaker 8: compared to IMB 42.1 million in the North of its career, with all the above that has led to a layering of just a layout for the year of IMB 121.2 million versus IMB 149.6 million last year. As mentioned by Lisa, we are confident of our brief event either???? than IRB 246 expected the paying staff.

Compared to I M B 42.1 million not.

Fifth career with or is it about that has been a net too.

Larry adjusted net loss for the year I M. B 100 end of 'twenty 1.2 million versus <unk> hundred and.

49.6 million last year as mentioned by Lisa we are confidant.

Brake <unk> event in the coming quarters.

Speaker 8: This year's management cost is RMB76.2 million.

Kai Fang: 本财年的管理费用是人民币7,620万，对比二一财年的1.14亿，下降了33.1%。管理费用占收入的比为6.4%，对比二一财年的11.3%，有着明显的下降。管理费用下降的主要原因是因为本财年的股权激励费用从去年的4,210万降低至了本财年的1,170万。综上所述，这导致了……

Kai Fang: [Non-English content]

So Daniel why don't you feel should I mean, if you can go about that.

Speaker 8: Compared to the year of 2021, 1.14 billion has fallen by 33.1%. The management cost accounted for 6.4% of the total revenue. Compared to the year of 2021, 11.3% has fallen significantly.

Phebe Italian the idea is the thought on that.

Sandeep I don't even feel in China in children.

That's been dilutive.

Maybe Italian <unk>.

Got that.

Speaker 8: Let's start with a detailed alignment plan, which someone can highlight? within your previous series ofisode 8. Xiazi is a team planning discussing whether

Glenn if you want to talk on a jogging machine weapon and Oh. Good chance you can even tell you one of Transunion.

Yeah, I'll bet, you should right itself.

<unk>.

Speaker 8: benanion, the E can Y B tiseone whous an So true TR do, but TR Ty Lea B anion team Cal hold the in placeasements UN the idiences o show judge.

Ben and English, you're talking about tissue at Transocean winter without Sheila I'll take that Alex.

Kai Fang: This brought the adjusted net loss for this fiscal year, narrowing from RMB 149.6 million last year to RMB 120 million this fiscal year. As Lisa mentioned, we have confidence in achieving break-even in the next few quarters. On our financial position as of 31 March 2022, if excluding the RMB 181 million of long-term debt, our effective debt-to-asset ratio stood at 44.8%.

Kai Fang: [Non-English content]. On our financial position as of 31 March 2022, if excluding the RMB 181 million of long-term debt, our effective debt-to-asset ratio stood at 44.8%.

Danielle to intelligent hold our in place rents on shouldn't hinder you Dan So Julio you showed that Chi.

Speaker 8: But any the Ed hard there may be generally tells what he thought: woman, you was see see, So I will like to. I will have good to do again in creating them on our financial POS.

Pentannual E D R E.

Generally thats what <unk> seen.

I'm, sorry, I had to say.

Well that does it cause you.

Yeah.

On our financial position.

Felicia as one.

Speaker 8: 31st March 2022, if excluding the IMB 181 million or long-term debt, our effective

First in March 2022 if if if.

Excluding the I M B 100, and if you're 1 million long term debt our effective.

Speaker 8: data as the ratio is good at 44.8%. As we are in the progress of completing shareholders of ODI, the company is expected to receive the equivalent amount in US dollars from overseas, which will be recorded in the company after repainting the IMD 181 million long-term debt.

Yeah.

Is that ratio stood at 44.8% as we are in the progress or completing shareholders ODI. No company is expected to receive the equivalent amount of U S dollars from overseas, which will be recorded in equity after repaying the IMD you 181 million.

Kai Fang: As we are in the progress of completing shareholders' ODI, the company is expected to receive the equivalent amount in US dollars from overseas, which will be recorded in equity after repaying the RMB 181 million of long-term debt. With no major CapEx foresight and a strong credit line backup, we believe we are cash sufficient to support our operation and pursue new initiatives, especially with our CAC achieving new low end as we get closer to our break-even point.

Long term debt and with no major.

Speaker 8: and with no major caps for spring and earth strong.

Forcing you ended our strong.

Speaker 8: credit line backup. We believe we are cash sufficient to support our operation and the pursuit

Perhaps your line back half.

Cash sufficient to support our operation and the pursuit of New York.

Speaker 8: initiative, especially with our CAC achieving new low-end as we get closer to our break-even point.

And you should give especially with our C. S E achieving.

And as we get closer to our breakeven point.

Kai Fang: 关于我们的财务状况，截止二零二二年三月三十一日，如果撇除掉1.81亿元人民币的长期负债，我们的实际资产负债率为44.8%。由于我们正在完成股东的ODI事项，我们预计在偿还了1.81亿人民币的长期负债后，公司将从境外获得等值的美元资金，并在会计上计入权益类科目。另外加上我们未来并没有重大的资本支出，同时我们在银行的信用额度非常充足，我们相信我们未来有足够的现金来支持我们的运营和寻求新的发展，特别是在我们的获客成本已经达到了历史新低，我们也越来越接近盈亏平衡。Operationally, to expand our business scope and provide all-rounded services to our branded partners and pet parents, we actively explored collaboration opportunities during the year.

Kai Fang: [Non-English content]. Operationally, to expand our business scope and provide all-rounded services to our branded partners and pet parents, we actively explored collaboration opportunities during the year.

My home and those who don't want changed at all in the audience.

Speaker 8: Going own not how 't vtaage R in R and SEI attentally rot PA through the and buy. Let may be the transition for that. poulers should value have to them Bu. Your andend one would on the o should are it child have buy. Buy may be the transition for con the down teteen for the tital. Maybe ING been that by the Jo teen rout T RO CH any.

Essentially either.

Walk into doubt you didn't buy even maybe they're trying to get for that elimination to sit out there that way, but I'm. Just curious looking back you know you all mentioned that one Jim with under old Yeah sure Tom.

Hey, Tom how are you didn't buy you can't buy either I mean, either transient for downhole consider downswing in Hawaii for the 10 should done maybe interesting been tapped by the John Campbell, our CMO change.

Speaker 8: Inspirational mayonnaise dashi red my cauldron of the quarter through the 1000Min reconnect what we will put into the care of every role again the ???????

Anyway, that's all women being met with I E mail it turned out the sort of been central.

Actually the woman does that you know how much you want to do a pitch on the trying to Reimagine, saying wait I also go to again just your main question shows in the fragile Toby I should I Wonder what you think that all are Alicia Indeed, well me a good idea and quite a few of them.

Speaker 8: We are operational to expand our business scope and provide all wrong disabilities to our branded partners and pet parents. We actively explored collaboration opportunities during the year. We have established a strategic partnership with EVA Soft while the leading pet hospitalRoadpton Veterans

Operationally to expand our scope and then provide all around data services to our branded partners and pet parents, we actively explored collab.

Parisian opportunities during the year.

Kai Fang: We have established a strategic partnership with Evetsoft, one of the leading pet hospital SaaS companies, covering over 3,500 pet hospitals, to provide hospitals with convenient tools such as online medical services, membership management, notification and reminder, and event promotion. Supported by our strong supply chain capability, we were able to transform the procurement system of hospitals, moving them from less reputable and possibly unreliable supplier to our well-guarded and reliable platform.

SAP is a strategic partnership with <unk> soft Wow, the leading pet hospital SaaS companies covering over three.

Speaker 8: 3,500 pet hospitals to provide hospitals with convient tours such as online medical services, membership management, notification and reminder and event promotion.

<unk> 3000.

500, pet hospitals to provide hospitals with convenient touring such as online medical services membership management notification and.

Minor.

Event promotion.

Speaker 8: 14 by hour strong supply chain capability wave we were able to

By our strong supply chain capabilities, we were able to.

Speaker 8: transform the procurement system of hospitals, moving them from less reputable and the possibility unreliable to our very guarded and reliable platform.

She has firmed.

Procure messy some of hospitals moving them from less reputable and possibility of unreliable supplier to our very guarded and reliable platform.

Speaker 8: If you use the collaboration, it will establish a new standard for professional and

Kai Fang: We believe the collaboration will establish a new standard for professional and personalized pet medical services, and it will provide strong support for our product sales business. 在公司运营方面，为了扩大业务范围，为合作，为品牌合作伙伴和宠物家长提供更全方位的服务，波奇在这一年一直积极探索合作机会。在22年，我们与国内领先的宠物医院SaaS公司迅德软件建立了战略合作关系。迅德软件公司覆盖超过三千五百家宠物医院，为医院提供在线医疗服务、会员管理、通知提醒、活动推广等便捷工具。在波奇集团强大的供应链能力的支持下，我们能够融入并改变医院的采购方法，将它们从未必可靠规模较小的供应商转移到波奇这个行业内认可的可靠平台。我们也相信，这次合作将为专业和个性化的宠物医疗服务建立一个新的标准，并将为产品销售业务提供强大的流量支持。On the other hand, we also made progress in the strategic partnerships with industry partners, including 华住, to provide customized pet-friendly staycation experience under the Blossom House brand.

Kai Fang: We believe the collaboration will establish a new standard for professional and personalized pet medical services, and it will provide strong support for our product sales business. [Non-English content]. On the other hand, we also made progress in the strategic partnerships with industry partners, including [Non-English content], to provide customized pet-friendly staycation experience under the Blossom House brand.

It was a collaboration will establish a new standard for professional.

Speaker 8: personized path medical services and it will provide strong pre-sync to our

That's a nice pets pet medical services and it will provide strong.

Shifting to our product sales business.

Speaker 8: In terms of company operations, in order to expand the scope of business, to provide more comprehensive services to brand partners and pet parents, Boqi has been actively exploring cooperation opportunities this year.

So you're you're familiar with what that Youll find way way. So that's one puzzle combat heart from ones that aren't gunshots.

What's the change there in each of the disease tends to work cause what you want.

Speaker 8: There are kenyyou cone link, canddo chhu and staff. counil shinder R you are journey.

Oh, Daniel when you go in and Nintendo which one were you in satcom.

Schinder ranch in San Antonio for your question.

Speaker 8: So the Ranger and going to the fu chocol sensing about the home UN where U and you go, that and know where you twent tohundred TV or three want going to that time town, bothst the town going in and neither chures up and then go WR rule. In gab Ian the haveper found some time and home where you Co ATE more job. The G DR ort take a higher, ISN T col Co?

Sundar and I forgot it travel attention without a doubt one way you enter your Goldman Sachs. Yeah, you know what here I'm glad he tundra team, who doesn't want to want them getting to your point you said you've had a chance I bought did you touch on that they're going in and you know just as a woman named Golden rule being Caribbean, you and the type of phone five downtown men's home wherever you go.

A couple quick more chances are they're going to teng triangular airports to go higher and they didn't put a cup of coffee in tact.

Speaker 8: We also believe in mixing steel to create perfection and personal competence, with a group ofeye performing equipments to cuk???? to continue stability.

I mean, you're talking Jason.

So of course in the trunk.

Would you I know you guys seem to be ultra being done way Tammy you total youll keep on telling that they'll go down tissue.

Speaker 8: On the other hand, we also made progress in the strategic partnerships with industry parents, including Huaju, to provide customized pest-rendered education experience under the blossom hot brand.

On the other hand, we also made progress in the strategic.

Partnerships with industry parents, including Quadral to provide custom customized to pet friendly.

Vacation experience under their blows them Hot brand.

Speaker 8: fashion brands to offer cross-over products as well as commercial property companies such as BFC, the mix

Kai Fang: Fashion brands to offer cross-over products as well as commercial property companies such as BSC, the MixC, and CRC to co-host pet events.

Some brands to offer cross our products as well as commercial property.

Property companies, such as PFC the mix.

Yeah.

Speaker 8: the mixed city and the CRC to co-host PET events. We have also entered the BRRM.

The next city and the CRC two cohort.

Pat events. We have also entered are there.

Kai Fang: We have also entered the cooperation into the entertainment industry by collaborating with 哔哩哔哩。一方面，我们在与其他行业合作，其他行业伙伴的战略合作方面也取得了进展。比如我们与华住酒店通过花间堂酒店平台提供定制的宠物友好型住宿体验，与时尚品牌等进行产品的跨界，以及与商业房地产企业如BSC、万象城和华润等共同举办活动。我们更开拓了元宇宙市场，通过与B站的合作，挖掘波奇品牌与文娱产业合作潜力。我们也看准了，做善事的同时做好生意。在成立以来的14年间，我们一直通过一系列促进宠物领养及捐赠的活动，为广大社区做出贡献。在中国最近一波的新冠疫情中，我们通过灵活的供应链支持了团购活动，使得上海12个区的447个社区受益。在物流极其困难的情况下，我们还承担了企业的公民责任，向报恩寺等多个爱心中心，以及上海和成都的其他中心捐赠了宠物食品和用品，满足了数千只流浪猫狗的日常需求。 Over the years, thanks to our 5 million spending customers, we have achieved these excellent results. In the upcoming quarters, we expect the trend to continue long into the future. As we further expand our portfolio offerings, strengthen our supply chain, and establish more multi-experience touch points, we believe the strong growth momentum in active buyers and post-fulfillment margin will make us stand out in the increasingly challenging pet market。在500万，在财年500万消费者的支持下，波奇才能够在这一年内取得了卓越的成绩。我们将持之以恒地延续发展的势头，进一步扩大产品组合，加强供应链的建设，并建立更多的波奇体验的触点。我们相信活跃买家和履单后毛利率的强势增长将使我们在日益挑战的宠物市场中脱颖而出。 In the meantime of business growth, we will also continue our mission of caring for pets to the best of our ability, whether it is by product sales to our pet parents, marketing service to our branded partners, or community service and donations to those in need. We will also stay vigilant to the changing dynamic in our industry in order to best serve our pet owners and industry partners in order to generate a fruitful return to our shareholders。在业务增长的同时，我们也将继续我们的使命，尽最大努力关爱宠物，包括通过向宠物家庭销售产品，为品牌合作伙伴提供营销服务，并向有需要的人提供社区服务和捐赠。我们也将对行业的变化持续保持关注，以便更有效地服务养宠家庭及行业伙伴，为股东创造丰厚的回报。 Let's now move on to the Q&A section.

Kai Fang: We have also entered the cooperation into the entertainment industry by collaborating with [Non-English content].

We have also entered is there a.

Speaker 8: cooperation into the entertainment industry by collaborating with BDBD.

Corporation into the payment industry by collaborating with PBT being found me a woman's egg.

Kai Fang: [Non-English content] Over the years, thanks to our five million spending customers, we have achieved these excellent results. In the upcoming quarters, we expect the trend to continue long into the future. As we further expand our portfolio offerings, strengthen our supply chain, and establish more multi-experience touch points, we believe the strong growth momentum in active buyers and post-fulfillment margin will make us stand out in the increasingly challenging pet market. [Non-English content].

Speaker 8: In Form Z she H and ourney host should India Bureau woman, you hyrojian ungo Ian Ian be high kubhome.

Well sure.

Tony Huegel Fund me yesterday.

Well many of your hydro Joe to entangle and Hangzhou, the empty impact things.

Speaker 8: Things to the tooyo house. Seeing TR Su here you SH him imag using chaampion partget iseasy. You show you on each chance C a RUB F, C. why exam her parent and going on about pohot ome PO you. When Jo go you be to a F year positive when you try to.

Should the Trump wheelhouse to suit you should Thompson patent teaching time, Hino EV, Shanghai Foundry challenge, yeah, it will be empty.

Well Byron and concerns about what.

Oh My goodness I told all of you and you don't wish his hometown boy it'd be technical dwarf Andrea positive body language.

The charity.

Speaker 8: We also looked to do good, to do good while doing well. In the last 14 years since our inception, we have been contributing to larger communities through a series of donations and activities that promote best adoption. In the recent wave of COVID-19 in the PRC, we were able to reach 447 communities across 12 districts in Shanghai.

We are also.

222 quick too good to talk with a Y are doing well in a lot of 14 years since our inception, we have been contributing to larger community.

Our donations and the activities that promote Beth a pet adoption in the <unk>.

Recent wave of COVID-19 in PRC. We are we were able to reach 400 447 communities across tile district in Shanghai soon.

Speaker 8: Group purchases spotted by our Agile supply chain. As a time when logistic logistic was extremely difficult, we also took on our responsibility as a corporate citizen by donating pacifies to various carrying centers such as

Group pace is supported by our HR supply chain at a time when the largest U.

Logistics, whilst you've chimney difficult. We also took on our response our responsibility as a corporate citizen by donating pacifiers to various Kari center such as.

Speaker 8: Bowling Emperor and other centers in Shanghai and Chen Zhu just flying the daily needs of thousands of stray dogs and cats.

For Oh in Tampa, and other centers in Shanghai, and Chengdu satisfying the daily needs of thousands of stray dogs and cats.

And you always want to ensure that both of you said you kind of you just found out when you don't touch anything either shifting from aegis.

Switching to more of a young children.

And as you know don't work on national issues or spoken with him.

Speaker 8: Chinese Prime Minister Lee Kul justo reported on the agreement that support the California??? The apartment construction company Reload ?????ensiveeros, provinces and the wordingers Modître Jang

I don't go to tangible that you can buy each enjoying what I'm, calling for their convenient gesture tango.

Shadow Shanghai Sharga. She does so that's for.

So to show you that what else is a chronology Hudson that's yet to come and there are some ball incident auger as interim CEO .

Shanghai, So we're trying to do the hot temps and cinzano troubleshooting.

We tend to go along smuggled out is on schedule.

Speaker 8: Over the years, thanks to our five million spending customers, we have achieved these excellent results. In the upcoming quarters, we've had the trend to continue long into the future. As we further expand our portfolio offerings, strengthen our supply chain and establish more more to experience touch points. We believe the strong growth.

Over the year.

Two of our 5 million spending customers, we have achieved that.

Excellent results in the upcoming quarters patterns or trends continue long into the future as we further expand our portfolio of offerings strength, a strength of our supply chain and establish more fortunate experience touch points, we'd be there was a strong growth.

Speaker 8: Moment in active virus and post-fulfiuming margin will make us stand out in the increased change.

Moment in active buyers and post fulfillment margin when may cause.

Out in the increasingly challenging market.

Kai Fang: In the meantime of business growth, we will also continue our mission of caring for pets to the best of our ability, whether it is by product sales to our pet parents, marketing service to our branded partners, or community service and donations to those in need.

Okay.

Speaker 8: By while that and you very good to the ES hand and go that Ian age to the to other twent. Oh my down, should you H fact should talk TE. Go Champion to her Y I'm going Indian Indian, you can do the P key. And children, Oh nothing me early down. Ho moly with the town. Do townun room and dily Cal and the.

And then what about why it's all very well, they're just examples of the tenant go without saying in nature.

Woman juncture G.

Hi, Jana should hold team, but we'll call that champions.

I'm going to show up and generally you can do the full year.

Yeah, Matt.

So all your downhole monitoring tranches and Dr. Joshua Women's I E.

Congress should have drawn between your actual.

Speaker 8: In the meantime, our business growth will also continue our mission of caring past to our best of ability.

In the meantime, obedient grows we are also.

Our mission of carrying path to our best ability.

Speaker 8: whether it is by products sales to our pet tolerance marketing service to our brand-new partners or community service and donations to those in need. We will also stay.

Whether it is a by product sales to our pet parents marketing service to our branded partners or community service and a donation to those in need maybe I'll also stay.

Kai Fang: We will also stay vigilant to the changing dynamic in our industry in order to best serve our pet owners and industry partners in order to generate a fruitful return to our shareholders. [Non-English content].

Speaker 8: We go to our to the changing dynamic in our industry in order to best our pet owners and industry parents in order to generate a first floor returns to our shareholders.

We plan to out to the changing dynamic in our industry in order to best serve our pet owners and industrial parents in order to generate the.

First of all our returns to our shareholders.

Kai Fang: Let's now move on to the Q&A section.

I'm sure many of them to show initial it seems to me that.

My actual I'll call. It change I think in total Tam being waived and corridor.

Thank you it's helpful.

It will show the rent you're going to show the true for agenda.

Uh huh.

Speaker 8: You know how should about children, when to you be going with other four young that in Han for bthat way go. Don't turn the some pore the about. Let's now move on to the Q N a section. Operator Le ment. You will went up.

Yeah, Hi, it's usually about sequential you'd be I'm, calling which although for downtown jockeying to young for bat wake with only turns out from hopefully Bob.

Now move on to the Q&A section operator.

When you went out with it.

Okay.

Speaker 1: But you can gentlemen, at this time we'll begin the question and answer session. To ask a question you may press star and then one, to remove yourself from the question cue you may press star and two.

Operator 2: Ladies and gentlemen, at this time we'll begin the question-and-answer session. To ask a question, you may press star and then one. To remove yourself from the question queue, you may press star, then two. If you are using a speakerphone, we do ask you please pick up the handset prior to pressing the numbers to ensure the best sound quality. Once again, that is star and then one to join the question queue. Our first question today comes from Darren Aftahi from Roth Capital Partners. Please go ahead with your question.

Operator: Ladies and gentlemen, at this time we'll begin the question-and-answer session. To ask a question, you may press star and then one. To remove yourself from the question queue, you may press star, then two. If you are using a speakerphone, we do ask you please pick up the handset prior to pressing the numbers to ensure the best sound quality. Once again, that is star and then one to join the question queue.

Ladies and gentlemen at this time, we'll begin the question and answer session.

Ask a question you May press Star and then one to remove yourself from the question queue. You May Press Star then two.

Speaker 1: If you are using a speaker phone, would you ask me please pick up the handset prior to pressing the numbers to ensure the best sound quality. Once again, that is starin-

If you are using a speaker phone would you ask you. Please pick up the handset prior to pressing the numbers to ensure the best quality.

Once again that is star and then wanted to join the question queue.

Speaker 1: Our first question today comes from Darren Fittahi from Roth Capital Partners. Please go ahead and put your question.

Operator: Our first question today comes from Darren Aftahi from Roth Capital Partners. Please go ahead with your question.

Our first question today comes from Darren <unk> from Roth Capital Partners. Please go ahead with your question.

Darren Aftahi: Hi, thanks for taking my question and good evening. I'm just kinda curious if you could maybe try and quantify how bad COVID impacted your business during the quarter. Post March, how has that changed?

Speaker 9: Hi, yeah, thanks for taking my question and good evening. I'm just kind of curious if you could Maybe try and quantify How bad COVID impacted your business during the quarter and then post March how has that changed?

Uh huh.

Thanks for taking my question and good evening I'm I'm, just kind of curious if you could.

Maybe try and quantify how bad Covid impacted your business during the quarter and then.

Most march.

How has that changed.

Speaker 2: Sc went. You feel when sweing out them as that you are speaking D? wn that your nbl gener out about, when you tell on that important with your done.

Okay.

Sure Glenn in rents or in South America.

We can do.

Thank you.

Kind of what that was about where each element accordingly gotcha.

I don't know what else I guess.

Speaker 7: As David Aí Lloyd said several months ago, the high level of popularity is going up in.... a fated lack to promote a powerful performance and actually managing it and company as a Yang Taiwan and concentrating on it. Many exceptions even Amsterdamono has thought...

Oh sure.

Stan your furniture.

I do want you to Shanghai.

She's a phone Sean Dodge.

Got you know going in.

Yeah.

Okay.

Gotcha.

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Sure.

Yeah, I'll go to functionally Keytruda I shall hand, though.

You see people not just with the Xiaomi box.

Sure.

Okay.

Yeah.

Okay.

Right.

Speaker 6: On Monday, June 8, 2018.

Then I'm sure. She each include T. J this is Dan.

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Thanks, Adam.

Sure.

We dealt with that.

A long time ago.

Okay.

Speaker 7: But space in a shall shoulder a.

Thanks Joshua.

Exactly.

Okay.

Speaker 2: Darren, thank you for your question. Actually, if you all know Shanghai.

Mandy Luo: Darren, thank you for your question. Actually, as you all know, Shanghai's pandemic started from early March, and that has really impacted the supply chain and the pet supply chain as well. It was not like the situation back in 2020, and we did see some influences. However, during the pandemic, we also developed a new way to connect with our customers. We used group buy, as mentioned in the earnings call, that has made up for some of the sales drops. Still, we saw some influence from the pandemic. On the other hand, we're also seeing that the pandemic hurt the offline scenario even harder, and that might have longer influences.

Darrin. Thank you for your question actually.

Actually as you all know Shanghai pandemic started from early March and that has really impacted the supply chain and the pet supply chain as well. So it was not like the situation back in 2020.

Speaker 2: pandemic started from early March and that has really impacted the supply chain and the supply chain as well. So it was not like the situation back in 2020. We did see some influences. However, during the pandemic, we also developed a new way to connect with our customers. We used GroupBite as mentioned in the Ernest call that has...

We did see some influences however, during the pandemic. We also developed a new way to connect with our customers. We grouped by as mentioned in our earnings call that has that has.

Speaker 2: that has made up for some of the sales drops, but still we saw some influence from the pandemic. On the other hand, we also see that the pandemic hurt it. The offline scenario even harder. And that might have more longer influences.

So that that has may.

Made up for some of the sales drop that's still where we saw some influence from the from the pandemic on the other hand, we also see that the pandemic hearted the offline scenario, even harder and that might have more longer that might have longer influences.

Speaker 2: But still, during this time, we see the online demand is still there. As we can find a solution to the logistics and supply chain blocks.

Mandy Luo: Still, during this time, we see the online demand is still there. If we can find a solution to the logistics and the supply chain block, which is also what we are doing right now, we believe we can offset this influence in some time, and that will not hurt our overall sales.

But still during this time, we see the online demand is still there if we can find a solution to the logistics and supply chain block. We believe we are which is which is also what we are doing right. Now we believe we can set off this the influence in some time and that we're not.

Speaker 2: We believe which is also what we are doing right now. We believe we can set off this influence in some time and that we're not hurt our overall self.

Heard all hurt our overall sales.

Speaker 9: Great, and then a couple more if I may. You touched on your membership program. I'm just kind of curious. Could you give any general sense for the level of spend of members versus non-members in the quarter?

Darren Aftahi: Great. A couple more, if I may. You touched on your membership program. I'm just kinda curious. Could you give any general sense for the level of spend of members versus non-members in the quarter?

Great and then a couple more if I may I'm you touched on your membership program I'm just kind of curious could you give any general sense for the level of spend of members versus thoughts members in the quarter.

Louis Liang: Hi, Darren. Hi. Sorry, I was dropped off, like, accidentally due to some bad signal. Regarding the membership program, yes, we are still seeing the same pattern with the member versus non-member spending. In general, the members spending about kind of 3 times over the non-members over the same quarter. In terms of both the RP and T as well as the margin contribution. We see some like kind of little bit flat in terms of like growth rate, which means they're kind of still the same growth rate, but now we can see kind of acceleration of the growth rate in terms of adding the members, mainly due to that, as we mentioned earlier.

Louis Liang: Hi, Darren. Hi. Sorry, I was dropped off, like, accidentally due to some bad signal. Regarding the membership program, yes, we are still seeing the same pattern with the member versus non-member spending. In general, the members spending about kind of 3x over the non-members over the same quarter. In terms of both the RP and T as well as the margin contribution. We see some like kind of little bit flat in terms of like growth rate, which means they're kind of still the same growth rate, but now we can see kind of acceleration of the growth rate in terms of adding the members, mainly due to that, as we mentioned earlier.

Speaker 10: Hey, Joan, now we're paying up, sorry, Os. Os, uh, Os, dropped off like asking to go to some best.

Hi, Jeremy Darroch, Brian I'm, sorry yours.

Sorry, I was dropped off like gases into like futures about signals.

Speaker 10: We got a new membership program. Yes, we are still saying the same pattern with the member versus number spending. In general, the member spending about country times over the number, so over the same, over the same quarter. And in terms of post, the RPN, the S. will as a marching country.

Regarding your membership program, yes, we are still seeing the same pattern reverse number spending.

In general the numbers thinking about times three times over the number of births over does seem openness and for her.

And in terms of post that.

And you asked for as a margin contribution so.

Speaker 10: So, but we see some kind of a little bit flat in terms of like gross rate, which means that kind of still same gross rate, but no agency kind of acceleration of the gross rating terms that members, many due to that as we mentioned earlier, for the membership program, it's not only about online discountings, but more about kind of a many other multi offline plus online benefit to the members.

But we see them some like kind of a little bit.

Flat in terms of close rates, which means that kind of still the same goes right, but nobody can see kind of acceleration of the growth rate in terms of bad november's, mainly due to that our west with majority of them are Michel program. It's not only about online gets comedies ballpark kind of a betting odds are multi offline.

Louis Liang: For the membership program, it's not only about online discount, it's more about kind of many other multiple offline plus online benefit to the members. On that front, we're still working hard. One number could definitely reflect how strong, like, our brand recognition is, like with our members, would be our CAC cost dropped dramatically from the 12-ish to the RMB 5.7 per customers. That would include in the non-members. Average that out, you will see, like, how well our membership programs are.

POS online benefits to the members so.

Speaker 10: So on that front, we're still working hard. But the ones that one number could differentiate. Do.

On that front, we're still working hard but.

Once that one number could definitely.

Speaker 10: reflect how strong like health and recognition like with our members would be our CIT cost drove dramatically from the tellage to the 5.7 on the per customer that would include in the member so average that out you will see like how right on message well international college

Reflect how strong but I'll try.

Recognitions like with our members would be ours.

He is he costs dropped dramatically from the <unk> to the $5 seven RMB.

For customers that would be including the member so our average that out you will see like Oh boy.

On the membership program.

Speaker 9: Great, and two more for me. One, what level of revenue gets you to adjusted evita break even? And then, I may have asked this on the last call, but just given where your stock is and your cash position, what are your general thoughts about a shareholder buyback plan?

Okay.

Darren Aftahi: Great. Two more for me. One, what level of revenue gets you to adjusted EBITDA breakeven? I may have asked this on the last call, but just given where your stock is and your cash position, what are your general thoughts about a shareholder buyback plan? Thanks.

Great and then just two more for me one what level of revenue gets you to adjusted EBITDA breakeven and then I may have asked this on the last call, but just given where your stock is and your cash position what are your general thoughts about a shareholder.

A buyback plan.

Mm Hmm okay.

Speaker 10: Maybe I'll just before we jump on to the detailed financial numbers, I'll just kind of touch upon the...

Louis Liang: Okay. Maybe I'll just, before we jump into the detailed financial numbers, kind of touch upon the buyback plan. Yeah, definitely we are open for the buyback plan, and it's in our war chest. Given the current market condition, we think it's like a falling knife in terms of the ADRs in general. Therefore, we will deliberately choose the best timing that serves the company best for the buyback. We are not rushing to market, but definitely it's in our war chest.

Yeah, maybe I'll just before we chip on chip to the detailed financial numbers I would just kind of what's your problem.

Speaker 10: the by the by like plan. Yeah, definitely we are open for the by like plan and it's in our wardrobe and

Oh.

The buyback plan Yeah definitely we are open for the off on the buyback plan and it's in our wardrobe.

Uh huh.

Speaker 10: given the current market condition, and we think it's like a fire rock in terms of the oil area.

Given the AR given the current market.

Condition and we thank you for your work in terms of just to the old 80 hours in general.

Speaker 10: Therefore, we will deliberately choosing the best timing that's so the complete best for the buy-back.

Therefore, we will deliberately choosing the best timing that's still good company basket for the buyback.

So we are not Washington market.

Speaker 10: So we are not Russian market but definitely eating our wardrobe.

Eating out Walker.

Yes.

Kai Fang: Darren, one point to add is that we expect that, when our quarterly revenue achieve between CNY 350 million and 400 million. Meanwhile, when our GPM reach 25% and we will achieve breakeven maybe in the Q4 or the Q3.

Uh huh.

Speaker 8: One point to add is that we expect that when our quarterly revenue achieved between 350 million and and 400 million meanwhile when and our ppm rich

One point to add is that we expect or that are where our rep.

Quarterly revenue achieved between $350 million and 400 million.

Meanwhile, in our.

Our G P M rich.

Speaker 11: 25% and we will achieve great event. Maybe in the December quarter or the September quarter.

25%.

We achieved breakeven maybe in the ER.

December quarter or the September quarter.

Mandy Luo: Great. Thank you, Louis Liang.

Darren Aftahi: Great. Thank you, Louis Liang.

Great. Thank you Laurel.

Okay.

Speaker 1: And once again, if you would like to ask a question, please press star and one. To withdraw your questions, you may press star and two.

Operator 2: Once again, if you would like to ask a question, please press star and one. To withdraw your questions, you may press star and two. Ladies and gentlemen, at this time I'm showing no additional questions. I'd like to turn the floor back over to management for any closing remarks.

And once again, if you would like to ask a question. Please press star and one to withdraw your question you May Press Star two.

Operator: Once again, if you would like to ask a question, please press star and one. To withdraw your questions, you may press star and two. Ladies and gentlemen, at this time I'm showing no additional questions. I'd like to turn the floor back over to management for any closing remarks.

Speaker 1: And ladies and gentlemen, at this time I'm showing no additional questions. I'd like to turn the floor back over to management for any closing remarks.

And ladies and gentlemen at this time I'm showing no additional questions I'd like to turn the floor back over to management for any closing remarks.

Yeah.

Yes.

Mandy Luo: Lisa. Hi, Darren, and hi, investors. Lisa just made some final remarks regarding the questions from some retail investors. I believe that will be the end of our sharing today, and thank you for your time and attention. We'd like to see you in the next call as well.

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Speaker 2: Lisa Hyderon and Hi Investors. Lisa just made some final remarks regarding the questions from our individual investors. I believe that will be the end of our sharing today and thank you for your time and attention. We'd like to see you.

Lisa Tang: [Non-English content]

Mandy Luo: Hi, Darren, and hi, investors. Lisa just made some final remarks regarding the questions from some retail investors. I believe that will be the end of our sharing today, and thank you for your time and attention. We'd like to see you in the next call as well.

Hi, Darren Hi, investors, Lisa just made some final remarks regarding the questions from from retail investors I believe that will be the end of our of our sharing today.

And thank you for your time and attention.

But like you see you in our next call as well.

Speaker 1: Ladies and gentlemen, that will conclude today's presentation. We do thank you for joining. You may now disconnect your life.

Operator 2: Ladies and gentlemen, that will conclude today's presentation. We do thank you for joining. You may now disconnect your lines.

Operator: Ladies and gentlemen, that will conclude today's presentation. We do thank you for joining. You may now disconnect your lines.

Ladies and gentlemen that will conclude today's presentation. We do thank you for joining you may now disconnect your lines.

Okay.

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