Q1 2023 Boqii Holding Ltd Earnings Call

September 15, 2022

Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to Boqii's Fiscal 2023 Q1 Earnings Conference Call. Currently, all participants are in 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. If you require operator assistance, please press Star then Zero. Now, I will turn the call over to Ella, Boqii's Head of Investor Relations. Ella?

Good day, ladies and gentlemen, thank you for standing by and welcome to both cheese fiscal 'twenty 'twenty three.

First quarter earnings conference call.

Currently all participants are in 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.

If you require operator assistance. Please press Star then zero.

Now I will turn the call over to Al <unk> cheese head.

Head of Investor Relations.

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Ella: Thank you, operator. Good morning, everyone. Welcome to Boqii's Fiscal 2023 Q1 Earnings Conference Call. Joining us today are Ms. Yingzhi (Lisa) Tang, Co-CEO and CFO, and Mr. Luoyi Dai, our Financial VP. 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. 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. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties are included in the company's public filings with the SEC.

Mandy Luo: Thank you, operator. Good morning, everyone. Welcome to Boqii's Fiscal 2023 Q1 Earnings Conference Call. Joining us today are Ms. Yingzhi (Lisa) Tang, Co-CEO and CFO, and Mr. Luoyi Dai, our Financial VP. 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. [Non-English content] 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. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding these and other risks and uncertainties are included in the company's public filings with the SEC.

Oh, Thank you operator, good morning, everyone and welcome to Fortune's Visco countries.

<unk> hundred three for its culture earnings conference call joining us today are Ms. Lisa.

Our CFO , Mr loyal dry hours and nationally.

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We released the results earlier today the.

Press releases.

On the company's IR web.

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Before we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S Highway Securities Litigation Reform Act of 1995.

We're looking statements involve inherent risks and uncertainties.

Such the company's actual results may be materially different from the expectations expressed today.

Information regarding these and other risks and uncertainties are included in the company's public filings with the S E T.

Ella: The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please note that certain financial measures that we use on this call, such as non-GAAP net loss, non-GAAP 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.

Mandy Luo: The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please note that certain financial measures that we use on this call, such as non-GAAP net loss, non-GAAP 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.

The company does not assume any obligation to update any forward looking statement, except as required under law.

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Please note that certain financial measures that we use on these calls such as non-GAAP net loss non-GAAP net loss margin EBITDA and EBITDA margin.

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.

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Yingzhi Tang: Regarding our GAAP performance results and the reconciliation between GAAP and non-GAAP standards, please refer to our earnings press release. Please be reminded that unless otherwise stated, all figures mentioned during the conference call are in Chinese RMB. With that, let me now turn the call over to our Co-CEO and CFO, Ms. Lisa Tang, to go over our Q1 performance and highlights.

Mandy Luo: Regarding our GAAP performance results and the reconciliation between GAAP and non-GAAP standards, please refer to our earnings press release. Please be reminded that unless otherwise stated, all figures mentioned during the conference call are in Chinese RMB. With that, let me now turn the call over to our Co-CEO and CFO, Ms. Lisa Tang, to go over our Q1 performance and highlights.

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Also please be reminded that unless otherwise stated all figures mentioned during the conference call I and Chinese RMB.

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With that let me now turn the call over to our coffee U S. CFO Ms. Lisa town to go over our Q1 performance and highlights Fortunately stuff.

Yingzhi Tang: Over to you, Lisa。呃，现在我把时间交给联合首席执行官兼首席财务官唐映芝女士，她会为我们回顾第一季度的业绩表现和亮点。就请 Lisa。 Thank you, Ella, and many thanks to everyone for joining the call today.

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Yingzhi Tang: Looking back into last quarter, Boqii is still sustaining the pressure from COVID-19 across its entire supply chain, ranging from disrupted local production to challenges in logistics. 谢谢 Ella, 也谢谢各位今天参加今天电话会议的朋友们. 回顾过去三个月, 新冠疫情持续地对供应链带来冲击, 无论是本地生产还是物流运输, 都面临了一定的阻碍和困难, 为波奇的业绩的发展也带来了一定的压力. Despite all the challenges, Boqii remains committed to its mission of serving as reliable and trusted platform to connect pet parents and brand partners.

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Ranging from disrupted local production to Chinese tariffs.

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Despite all the challenges, but he remains committed to its mission of serving.

Abel unaddressed in the platform to connect to connect with pet parents and brand partners.

Yingzhi Tang: Supported by its expansive product range, extensive channel, engaging community, and rich content.

So plenty of advice extensive product range.

Extensive channel engaging community and the rich content.

Yingzhi Tang: As we continue to strengthen our brand among pet parents, we were able to achieve a recovery in GMV and revenue of 20.7% and 27.1% from the last quarter respectively. 尽管如此，波奇仍然致力于多元的产品种类，广泛的渠道触达，高度互动的社区，和丰富的内容，有效串联养宠用户和品牌伙伴，成为他们最可信赖的平台。随着波奇品牌影响力的进一步提升，我们这个季度的GMV和收入分别比上个季度增长了20.7%以及26.1%。We also continued to invest and enhance our big data analysis capability so that we can become one of the major go-to places for industry partners for a forward-looking perspective on pet market trends, allowing them to quickly identify further market trends and capture the subsequent market opportunities.

As we continue to strengthen our brand among our parents, we were able to achieve a recovery E. G. N V and the revenue of Chinese play at 7% and the Chinese 7.1% from the agriculture, respectively.

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Yingzhi Tang: Hence, on our high margin online marketing and information services, we were able to continue its growing trend, reporting at a 14.7% year-over-year growth in revenue during the quarter, highlighting the increasing marketing adoption。同时，波奇也持续优化了其大数据的分析能力，为行业伙伴提供了具有前瞻性的市场趋势及观点，让他们快速地了解了市场动态，把握了新的市场机遇。因此，我们高毛利的线上营销和信息业务在业内继续持续增长，收入同比上升了14.7%，市场认可度在持续地提高。Our private label also performed well.

Is oh, a high margin on marketing and information services.

She'll continue its growing trend reporting to edge up 14 points David.

Per cent year over year growth in revenue during the culture, highlighting the increasing marketing adoption.

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Our private label or still performed well performed well, writing Oh, proving big data and data discovery, where at that point I didn't you find the growth potential in product categories, such as pet supplies and our health care products.

Yingzhi Tang: Riding on our improving big data analysis capability, we identified growth potential in product categories such as pet supplies and healthcare products, and have subsequently sequentially made adjustments to our existing product portfolio. As a result, we were able to report a satisfactory increase in revenue of 27.3% year-over-year.

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Our results show, we were able to report satisfactory increase in revenue of 27 point to represent year over year.

Yingzhi Tang: The growth has not only demonstrated our ability to respond to market needs, but more importantly, highlighting our resilience despite operating on a downward cycle. 同时，我们的自有品牌同样表现得非常出色。凭借我们持续优化大数据的分析能力和供应链能力，我们发现了宠物用品和宠物医疗保健产品等类别的产品的快速发展潜力，从而调整了现有的自有品牌的组合。因此，在报告期内，自有品牌的收入同比增长了27.3%，不仅证明了我们应对市场需求的能力，更加凸显了我们在经济下行周期当中的经营韧性。Our strong performance in private label, together with continued efforts to enhance infrastructure, further improve warehouse efficiency, and expand on marketing capability, led to a satisfactory margin expansion of 3,030 basis points year-over-year, with post-fulfillment margin hitting 10.6%, reflecting our outstanding operational capabilities。我们自有品牌的理想表现，也和我们持续加强基础设施建设分不开。我们进一步提高了仓储效率，并且扩大了在线运营能力，使得我们的履单后的毛利率同比大幅提升了3.3个百分点到10.6%，体现了团队的出色运营能力。Aiding our strength in cost control, the loss from operations was RMB 9.8 million, narrowing by 76.4% year over year. The net loss significantly dropped by 66.8% year-over-year to RMB 12.4 million for the quarter, which is the best quarter so far.

Gross has not only demonstrated our ability to respond and show my kidneys.

But more important today, highlighting our resilience despite operating a downward cycle.

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Our strong performance in private label together with continued efforts to enhance infrastructure or they improve warehouse efficiency and expand on our marketing capability.

I had to choose this victory margin expansion of three so under 30 basis points, you know L. P M.

Please post fulfillment module hitting Tampa is 6%, reflecting our outstanding operational capabilities.

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And you can always change and cost control reporting to loss from operations was RMB 9.8 million narrowing by 17, 17, six plus 4% year over year.

And then it also has significantly dropped by 66, 8% year over year to RMB 12, 4 million for the project, which is the best recorded so far.

Yingzhi Tang: The improvement on cost control also gives us a much leaner structure to go forward as we fully validate our ability to achieve profitability.

The improvement on cost control also gives us a much leaner structure to go forward as.

We're fully validates our ability to achieve proteins are bitchy.

Yingzhi Tang: 期间，我们同时严格控制成本，报告期内运营亏损达到九百八十万人民币，比去年显著下降了76.4%。净运营亏损下降了66.8%，至人民币一千两百四十万元。随着我们的成本结构进一步优化，我们也将进一步证明我们的盈利能力。Boqii being the leading platform in China shall become one of the key beneficiaries as we continue to expand and strengthen our ecosystem, and enhance our value proposition to pet parents and the industry partners.

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Yingzhi Tang: 波奇作为中国领先的宠物平台，将持续通过扩大其生态圈，为宠物父母和行业合作伙伴创造更大的价值，从而成为行业增长的主要受益者。Now let me pass the time to Ella to update further on operation notes and community engagement during the quarter。现在让我把时间交给Ella，为大家进一步分享这个季度的运营数据和生态圈建设的最新情况。谢谢。

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Ella: Okay. Thank you, Lisa, for the market insight and business highlights. On long-term horizon, we believe in the potential of China's pet market as it remains under-penetrated and underserved. According to the 2021 White Paper on China's Pet Industry, its market size is expected to reach RMB 269.3 billion in 2022, and RMB 445.6 billion in 2023. For us, the strong growth as well as the low industry concentration should leave ample space for us to grow and capture.

Mandy Luo: Okay. Thank you, Lisa, for the market insight and business highlights. On long-term horizon, we believe in the potential of China's pet market as it remains under-penetrated and underserved. According to the 2021 White Paper on China's Pet Industry, its market size is expected to reach RMB 269.3 billion in 2022, and RMB 445.6 billion in 2023. For us, the strong growth as well as the low industry concentration should leave ample space for us to grow and capture.

Okay. Thank you Lisa for the market insight on business highlights.

A long term horizon, we believe in the potential of China's Pac market.

It remains under penetrated.

[noise] underserved according to the white paper on China's popped into Australia in 2021 its market size is expected to reach them be at $269 3 billion in 'twenty or 'twenty two.

And RMB 445.6 billion in 'twenty two 'twenty three.

For us the strong world as well as the loan industry concentration she'll leave ample space for us to go out and capture.

Yingzhi Tang: 感谢Lisa总详细的市场及业务回顾。从长远来看，我们相信中国宠物市场有很大的增长空间，渗透率以及服务种类均有待提升。参考2020至2021年中国宠物行业白皮书的数据，中国宠物市场预计在2022年市场规模将达到人民币2,693亿元，2023年将高达人民币4,456亿。对波奇而言，市场的高速增长以及目前行业集中度偏低，都将为波奇带来充足的成长空间，从中获得更多的增长机遇。

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Ella: As a platform that aims to become an end-to-end connector between brand partners and pet parents, we have been striving to expand our offering and community so that on the one hand, we can become the one-stop destination for pet parents that will satisfy their information, interaction, products, and services needs, on the other hand, becoming the preferred option for brand partners to reach pet parents.

Mandy Luo: As a platform that aims to become an end-to-end connector between brand partners and pet parents, we have been striving to expand our offering and community so that on the one hand, we can become the one-stop destination for pet parents that will satisfy their information, interaction, products, and services needs, on the other hand, becoming the preferred option for brand partners to reach pet parents.

That's a platform that aims to become in ancho interconnector between Brown partners and pet parents.

<unk> been striving to expand our offering on community. So that on one hand, we can become the one stop destination for pet parents Davos I, just find their inflammation interaction product and services needs and on the other hand.

Becoming the preferred option for brand partners to reach top talents.

Yingzhi Tang: 作为连接品牌伙伴及养宠父母的服务平台，波奇一直深耕其产品和社区，一方面致力满足养宠父母的知识、社交、产品和服务需求，另一方面致力于成为品牌伙伴触达养宠父母的首选渠道。

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Ella: Riding on our growing brand equity as well as established infrastructure, we were able to attract a growing number of brands to join our platform during the quarter. With the number of brands increasing by 14.1% to 745 in the quarter from 653 in the same period last year. SKU also reported an increase of 75.9% from 22,732 in the same period last year to 28,620 this quarter.

Mandy Luo: Riding on our growing brand equity as well as established infrastructure, we were able to attract a growing number of brands to join our platform during the quarter. With the number of brands increasing by 14.1% to 745 in the quarter from 653 in the same period last year. SKU also reported an increase of 75.9% from 22,732 in the same period last year to 28,620 this quarter.

Riding on our growing brands Apple T as well as established infrastructure, we were able to attract a growing number of brands to join our platform during the quarter.

With the number of brands, increasing by 14 points one profound to 745 in the quarter from six 653 in the same period last year.

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75.9% from 22000.

732, and those seem to be around last year to 28600 I'm content this quarter.

Yingzhi Tang: 凭借我们不断增长的品牌价值以及成熟的基础设施，我们得以吸引更多品牌加入波奇的平台。品牌数量从去年同期的653个增加14.1%，至本季度的745个。SKU也从去年同期的22,732个增加到本季度的28,620个，增长达25.9%。

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Ella: The growth of product category and selections along with our comprehensive outreaching channels layout combining online and offline, enabled us to continuously enrich our highly sticky traffic pool. In this quarter, our active users increased by 11.4% year-over-year, and 20.8% quarter-over-quarter to 1.83 million. Our customer acquisition cost also hit a new low of RMB 5.2, compared to RMB 12.8 in the same period last year.

Mandy Luo: The growth of product category and selections along with our comprehensive outreaching channels layout combining online and offline, enabled us to continuously enrich our highly sticky traffic pool. In this quarter, our active users increased by 11.4% year-over-year, and 20.8% quarter-over-quarter to 1.83 million. Our customer acquisition cost also hit a new low of RMB 5.2, compared to RMB 12.8 in the same period last year.

Oh, the growth of product category selections, along with our comprehensive outraging channels lay out combined Oh I am sorry.

They brought us to continuously enrich our highly as they can't traffic pool.

This quarter, our active users increased by 11, 4% year over year.

And 20.8% quarter over quarter two.

One point.

83 million.

Our customer acquisition cost to also hit a new low of RMB 5.2, compared to 12.8 in the same period last year.

Yingzhi Tang: 产品种类的增长，加上我们线上线下结合的全渠道布局，进一步丰富了我们的高粘性流量池。本季度我们的活跃用户同比增长11.4%，环比增长20.8%，达到183万人。与去年同期的12.8元相比，我们的获客成本也创下了5.2元的新低。

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Ella: We believe the record low CAC highlights our high customer stickiness as well as the potential in user organic growth. The expanding community should also lay a solid foundation for our future product sales and service revenue growth.

Mandy Luo: We believe the record low CAC highlights our high customer stickiness as well as the potential in user organic growth. The expanding community should also lay a solid foundation for our future product sales and service revenue growth.

And what I believe the record low safety highlights our high customers thickness as far as the potential in user organic growth.

They're expanding community should also lay a solid foundation for our future product sales and service revenue growth.

Ella: 客户成本再创新低，凸显了我们的高客户粘性，以及未来用户内生增长的潜力。不断丰富的社区也为我们未来的产品销售及服务收入增长奠定了坚实的基础。All in all, along with our product portfolio optimization and cost control efforts, we were able to report the loss from operations was RMB 9.8 million, narrowing by 76.4% year-over-year as we are now really close to breakeven and in a much better position to generate long-term value for our shareholders.

Mandy Luo: 客户成本再创新低，凸显了我们的高客户粘性，以及未来用户内生增长的潜力。不断丰富的社区也为我们未来的产品销售及服务收入增长奠定了坚实的基础。All in all, along with our product portfolio optimization and cost control efforts, we were able to report the loss from operations was RMB 9.8 million, narrowing by 76.4% year-over-year as we are now really close to breakeven and in a much better position to generate long-term value for our shareholders.

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All in all along with our product portfolio optimization and cost control efforts, we were able to report a loss from operations was RMB five points, it's nowhere narrowing by seven C 76, 4% year over year.

As we all know really cool really close to a breakeven and in a much better position to generate long term value for our shareholders.

Ella: 产品组合的优化以及有效的成本控制，使我们期内的运营亏损同比收窄76.4%至人民币980万元，逐渐接近盈亏平衡。我们相信未来将更有力为股东创造长远的价值。Now I will turn the call over to our Financial VP, Luoyi Dai, who will share more details on our financials. Luoyi?

Mandy Luo: 产品组合的优化以及有效的成本控制，使我们期内的运营亏损同比收窄76.4%至人民币980万元，逐渐接近盈亏平衡。我们相信未来将更有力为股东创造长远的价值。Now I will turn the call over to our Financial VP, Guangyo Luo, who will share more details on our financials. Luo?

Champions, a hoodie or quiet shoulder, which I'm unconscious Sherman scenario, I mean, Christian Palm Beach show type I'm British audience shouldn't I mean being taught by Bosch wagon on.

Unfortunately, the equipping of how well the south even way lifetime going all the way on Transalta trying to attach it.

Now I will turn the call over to Oliver for National V. P.

<unk>, who will share more details on our financials loyal.

Luoyi Dai: Thank you, Ella. Now please, allow me to walk you through our financial highlights for the quarter. Before I go into details, please note that all numbers presented are in RMB and are for Q1 of fiscal year 2023, unless stated otherwise. All percentage changes are on a year-over-year basis unless otherwise specified.

Guangyu Luo: Thank you, Ella. Now please, allow me to walk you through our financial highlights for the quarter. Before I go into details, please note that all numbers presented are in RMB and are for Q1 of fiscal year 2023, unless stated otherwise. All percentage changes are on a year-over-year basis unless otherwise specified.

Thank you.

Please allow me to walk you through our financial highlights for the quarter before I go into detail.

What numbers presented in RMB and all for the first quarter of fiscal year 'twenty.

23.

The other one was going to be changing oh year over year.

Unless otherwise specified.

Luoyi Dai: 接下来，我会跟大家分享更多关于波奇在本季度的财务亮点数据。在我详细介绍之前，需要大家注意的是，除非另有说明，以下提到的所有财务数据都以人民币为计算单位，并且是二零二三财务年度第一季度的数字。同时，除非另有说明，所有的百分比变动都是基于同比的变动。In this quarter, our total revenue slightly decreased 2.1% to RMB 315.1 million.

Guangyu Luo: 接下来，我会跟大家分享更多关于波奇在本季度的财务亮点数据。在我详细介绍之前，需要大家注意的是，除非另有说明，以下提到的所有财务数据都以人民币为计算单位，并且是二零二三财务年度第一季度的数字。同时，除非另有说明，所有的百分比变动都是基于同比的变动。In this quarter, our total revenue slightly decreased 2.1% to RMB 315.1 million.

Yes.

And John can talk on your board.

I went out in the future.

Sure.

Gotcha.

And B, what you spend on it.

Sure.

I went into it.

Okay.

So that's going to depend on those shifts.

He can BW doing.

In this quarter, our total revenue.

Great.

A point to 1% to RMB 300 under $15 1 million.

Luoyi Dai: Primarily due to the decline in revenue from product sales, which dropped 2.7% from RMB 311.5 million to RMB 303.2 million due to the impact of COVID-19. However, revenue from the higher margin online marketing and information services increased by 14.7% to RMB 11.9 million.

Guangyu Luo: Primarily due to the decline in revenue from product sales, which dropped 2.7% from RMB 311.5 million to RMB 303.2 million due to the impact of COVID-19. However, revenue from the higher margin online marketing and information services increased by 14.7% to RMB 11.9 million.

Primarily due to the decline in revenue from products, Yes, Richard chops to appointment to 7% from RMB $311 5 million to RMB 303.2.

2 million due to the impact of COVID-19.

Uh huh.

However revenue from the higher market online marketing and other information services increased by 14, 7% to RMB.

7.9 million.

Luoyi Dai: 在这个季度，我们的总收入略微下降了2.1%，来到了人民币3.15亿。主要是由于我们产品收入略有下降，由于受到新冠疫情的影响，我们的产品销售收入下降了2.7%，从人民币3.12亿下降到了人民币3.032亿。不过，来自更高毛利率的线上营销及信息服务收入增长了14.7%，达到了人民币1,190万元。The increase in contributions from service income, as well as improvement of private labels and enhancement in product portfolio, have together delivered an increase in gross profit from RMB 56.4 million to RMB 70.7 million, up 25.3% year over year.

Guangyu Luo: 在这个季度，我们的总收入略微下降了2.1%，来到了人民币3.15亿。主要是由于我们产品收入略有下降，由于受到新冠疫情的影响，我们的产品销售收入下降了2.7%，从人民币3.12亿下降到了人民币3.032亿。不过，来自更高毛利率的线上营销及信息服务收入增长了14.7%，达到了人民币1,190万元。The increase in contributions from service income, as well as improvement of private labels and enhancement in product portfolio, have together delivered an increase in gross profit from RMB 56.4 million to RMB 70.7 million, up 25.3% year over year.

That you got to do them under control.

I don't have them in Draghi M B E.

Do you actually you can be sure we'll do it without the usual.

Okay great.

So I mean does that mean, social Shawn Moon shot.

In sheets.

Do you send your E E.

And B E.

Well I think al Martinez.

He changing solution.

I'm talking about and it's just been too.

You cannot do with Schrader.

The increase in contributions from servicing income.

Improvement.

I mean, they both end.

In product portfolio health Catholic anyway, and increase in gross profit from RMB 56.4 million to RMB 17.7 million up 25, 3%.

Luoyi Dai: Gross profit margin also enjoyed a significant enhancement of 419 basis points to 22.4%.

Guangyu Luo: Gross profit margin also enjoyed a significant enhancement of 419 basis points to 22.4%.

Year over year gross profit margin also enjoyed a significant investment.

419 basis points to 22.4%.

Luoyi Dai: 由于我们服务收入贡献的增加，以及自有品牌的发展，以及我们在产品组合上面所做的改善，共同推动了本季度毛利率的增长。期间内，我们的毛利从人民币5,640万元提高到了人民币7,070万元，同比增长了25.3%，毛利率也大幅提升了490个基点，达到了22.4%。In terms of expenses, due to the supply chain disruption as well as lockdowns from COVID-19, our fulfillment expenses for the quarter slightly increased from 10.2% of revenue last year to 11.8% of revenue this quarter, largely maintained at RMB37.4 million.

Guangyu Luo: 由于我们服务收入贡献的增加，以及自有品牌的发展，以及我们在产品组合上面所做的改善，共同推动了本季度毛利率的增长。期间内，我们的毛利从人民币5,640万元提高到了人民币7,070万元，同比增长了25.3%，毛利率也大幅提升了490个基点，达到了22.4%。In terms of expenses, due to the supply chain disruption as well as lockdowns from COVID-19, our fulfillment expenses for the quarter slightly increased from 10.2% of revenue last year to 11.8% of revenue this quarter, largely maintained at RMB37.4 million.

Yeah for sure.

Got it.

Can you kind of hijacked in human touch that means of course that means.

Gotcha.

Okay.

<unk> syndrome.

So again Molly.

So we're gonna be what you can do about it.

She can infusion of IV <unk> and Joshua we guess that what do you do your thoughtful.

So that's also good to hear that all of them and Josh audiences.

In terms of.

Due to the supply chain disruption.

No knockdown from COVID-19, our fulfillment expenses for the quarter slightly increased from 10, 2% on revenue not the year to 11, 8% of revenues this quarter and I have to be maintained.

I am 37, 4 million. However, as we were able to greatly increase our gross profit margin. Our fulfillment cost margin also increased to 10.6% compare compared to 7.3 per cent or lots of you.

Luoyi Dai: However, as we were able to greatly increase our gross profit margin, our post-fulfillment gross margin also increased to 10.6% compared to 7.3% of last year.

Guangyu Luo: However, as we were able to greatly increase our gross profit margin, our post-fulfillment gross margin also increased to 10.6% compared to 7.3% of last year.

Luoyi Dai: 在费用方面，受到供应链中断以及新冠疫情下的封控政策的影响，本季度的履单费用占收入的百分比略有增加，增加到了11.8%，那去年同期为10.2%。金额基本维持在人民币3,740万元。然而由于我们整体毛利率显著提升，我们履单后的毛利率也增加到了10.6%，去年同期为7.3%。Our total sales and marketing expenses were RMB 31.7 million, down by 30.3% from RMB 45.5 million in the same period of last year.

Guangyu Luo: 在费用方面，受到供应链中断以及新冠疫情下的封控政策的影响，本季度的履单费用占收入的百分比略有增加，增加到了11.8%，那去年同期为10.2%。金额基本维持在人民币3,740万元。然而由于我们整体毛利率显著提升，我们履单后的毛利率也增加到了10.6%，去年同期为7.3%。Our total sales and marketing expenses were RMB 31.7 million, down by 30.3% from RMB 45.5 million in the same period of last year.

You won't find me an issue at all.

Got you.

Got it.

Thank you Tom.

When do you do that you don't feel your own potential with that F&B deal with things I think that all of them just shoot it back to me I can see the waiver just shook out.

She'd been which is I wouldn't be thinking about especially my guess.

You mentioned he modestly rotation from any of your downhole del Monte.

Thank God all of that.

Shinhan Z wave patterns, if she didn't Sam.

Our total us out in the market you can see it.

What I M. D is 31 7 million down by 30 points of 3% from RMB 45 points five.

Sam Jonah over last year.

Luoyi Dai: Sales and marketing expenses as a percentage of total revenue was 10.2%, down from 14.1% in the same quarter of last year.

Guangyu Luo: Sales and marketing expenses as a percentage of total revenue was 10.2%, down from 14.1% in the same quarter of last year.

And the marketing expenses as a percentage of total revenue was 10.2.

But down from 14 point to 1% in the same quarter last year. The decrease was primarily due to the decline or other one time expenses amounted to RMB 14 billion, resulting from the lower expenditure for coffee and dessert.

Luoyi Dai: The decrease was primarily due to the decline of advertising expenses amounting to RMB 14 million, resulting from the lower expenditure for cost savings and the increased proportion of revenue generated from more cost-efficient channels. Our sales expenses totaled RMB 31.7 million, down 30.3% from RMB 45.5 million in the same period last year. Sales expenses accounted for 10.2% of total revenue, far lower than 14.1% last year. This was mainly due to our savings in advertising expenditures, as well as the increased proportion of revenue from more cost-effective channels, which led to a RMB 14 million reduction in our promotion expenses. Quarterly, G&A expenses were RMB 11.5 million, down by 41% from RMB 19.6 million in the same quarter of fiscal year 2022.

Guangyu Luo: The decrease was primarily due to the decline of advertising expenses amounting to RMB 14 million, resulting from the lower expenditure for cost savings and the increased proportion of revenue generated from more cost-efficient channels. Our sales expenses totaled RMB 31.7 million, down 30.3% from RMB 45.5 million in the same period last year. Sales expenses accounted for 10.2% of total revenue, far lower than 14.1% last year. This was mainly due to our savings in advertising expenditures, as well as the increased proportion of revenue from more cost-effective channels, which led to a RMB 14 million reduction in our promotion expenses. Quarterly, G&A expenses were RMB 11.5 million, down by 41% from RMB 19.6 million in the same quarter of fiscal year 2022.

Perhaps your own revenue generated from more cost efficient channels.

Well the social huh.

Real feeling somewhat of a wait and see.

Okay.

Junior incomes should Susanne.

On the passenger fashion against that.

That's really the only time you wait I'm just kidding.

You can do it shouldn't you end up having to ship it.

Josh a yo Yo woman, Okay, you got up on lunch at Shaw.

Now looking to your 10 minutes, how are you doing there shouldnt, China infusion down to.

215 to one to ensure that you can answer that one.

Accordingly.

G&A expenses were RMB 11, 4 million 5 million down by 41% from RMB 19.

Pardon me that in the same quarter over fiscal year 2022 G&A expense as a percentage of total revenue was three 7% down from six point or 1% primarily due to the decreases in.

Luoyi Dai: G&A expenses as a percentage of total revenue was 3.7%, down from 6.1%, primarily due to the decreases in SBC expenses. 本季度的管理费用为人民币1150万元，较去年同期人民币1960万元大幅下降了41%。管理费用占总收入的百分比为3.7%，远低于去年同期的6.1%，这主要是由于股权激励费用的减少。That came down to a net loss of RMB 10.4 million for the quarter, versus a net loss of RMB 37.4 million of last year, representing a significant drop of 66%.

Guangyu Luo: G&A expenses as a percentage of total revenue was 3.7%, down from 6.1%, primarily due to the decreases in SBC expenses. 本季度的管理费用为人民币1150万元，较去年同期人民币1960万元大幅下降了41%。管理费用占总收入的百分比为3.7%，远低于去年同期的6.1%，这主要是由于股权激励费用的减少。That came down to a net loss of RMB 10.4 million for the quarter, versus a net loss of RMB 37.4 million of last year, representing a significant drop of 66%.

SBC expenses.

Do you feel with them be you can't even I wish my gut tells.

And you can see maybe you changed your evaluation tough without going out I mean, just the V.

Wonder if you only time, it's really about them be wait and see.

You couldn't even see that back in July to Joshua young children failing to Tangela.

Okay.

That came down to.

Net loss of RMB, <unk> 4 million for the quarter. Nevertheless, I M D.

7.4 million Oh lots of them lots of year, representing just kind of job one.

Point percent.

Luoyi Dai: EBITDA-wise, it also dropped 74.6% year-over-year from CNY 35.6 million last year to 9 million this quarter.

Guangyu Luo: EBITDA-wise, it also dropped 74.6% year-over-year from CNY 35.6 million last year to 9 million this quarter.

Even though once he's also jumped 74.6% year over year from RMB, $35 6 million lots a year or two I M b.

Line.

This quarter non-GAAP net loss narrowed significantly by 66, 7% year over year to RMB $10 5 million from RMB 31, 5 million lots of corner.

Luoyi Dai: Non-GAAP net loss narrowed significantly by 66.7% year over year to RMB 10.5 million from RMB 31.5 million last quarter. 综合下来看，本季度的净亏损为人民币1,240万元，较22年全年同期净亏损人民币3,740万元大幅收窄了66.8%。EBITDA也从去年同期的人民币亏损3,560万元，同比大幅下降了74.6%，来到了本季度的人民币904万元。Non-GAAP净亏损从去年的人民币3,154万显著收窄了66.7%，来到了今年的人民币1,051万。On our financial position as of 30 June 2022, if excluding the RMB 159 million of long term debt, our effective debt to asset ratio stood at 48.9%.

Guangyu Luo: Non-GAAP net loss narrowed significantly by 66.7% year over year to RMB 10.5 million from RMB 31.5 million last quarter. 综合下来看，本季度的净亏损为人民币1,240万元，较22年全年同期净亏损人民币3,740万元大幅收窄了66.8%。EBITDA也从去年同期的人民币亏损3,560万元，同比大幅下降了74.6%，来到了本季度的人民币904万元。Non-GAAP净亏损从去年的人民币3,154万显著收窄了66.7%，来到了今年的人民币1,051万。On our financial position as of 30 June 2022, if excluding the RMB 159 million of long term debt, our effective debt to asset ratio stood at 48.9%.

Or is that kind of thing to do though Tim chrisman weight them beat you can't IMAX is running it.

Onions, seigneur, consisting placement that'd be extensions to that says that for sure.

With you about.

Without good EBITDA use once union towards your question and send them home values can.

But you definitely got down at that fringes here scenario at all open to do that it wouldn't be dramatic.

non-GAAP English intervention into MBS and Canada, So what change we will show data back into.

She led all isn't yet an opinion that didn't beat you can't even tell you what.

Our financial position at 130.

So huge win 2022 if excluding the M. B 115, 9 million long term debt, our effective with that too.

As that ratio stood at.

48.9% as we are in the progress on completing shareholders.

Luoyi Dai: As we are in the process 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 CNY 159 million of long-term debt. We ended this quarter with cash and cash equivalents and short-term investments of CNY 247.4 million.

Guangyu Luo: As we are in the process 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 CNY 159 million of long-term debt. We ended this quarter with cash and cash equivalents and short-term investments of CNY 247.4 million.

The company is expecting to receive the equivalent amount in U S dollars from overseas, which would be a record year in ft. After repaying the RMB 159 million long term debt.

We ended the quarter with cash cash.

Ask you could've and short term investments O I M D.

247 point familiar with our strong cash on hand, a stable currency, Rachel Kathy Gary Kogan gasoline that breakeven point.

Luoyi Dai: With our strong cash on hand, stable current ratio, healthy gearing, as well as the closing gap with the break even point, we believe we are sufficient in our operation and continue to be solid. 关于我们的财务状况，截至二零二二年六月三十日，如果撇除RMB 1.59亿的长期负债，我们的实际资产负债率低于50%，为48.9%。由于我们正在完成部分股东的ODI事项，我们预计在偿还了RMB 1.59亿的长期负债后，公司将从海外获得整额的美元资金，并在会计上计入权益类科目。本季度末，我们的现金、现金等价物和短期投资总额为RMB 2.474亿。凭借我们强大的手头现金，稳定的流动比例，健康的资产负债率，以及盈亏平衡点的差距不断缩小，我们相信公司有足够的运营资金维持业务稳健的发展。Last but not least, as Lisa mentioned, Boqii's value always go beyond a business.

Guangyu Luo: With our strong cash on hand, stable current ratio, healthy gearing, as well as the closing gap with the break even point, we believe we are sufficient in our operation and continue to be solid. 关于我们的财务状况，截至二零二二年六月三十日，如果撇除RMB 1.59亿的长期负债，我们的实际资产负债率低于50%，为48.9%。由于我们正在完成部分股东的ODI事项，我们预计在偿还了RMB 1.59亿的长期负债后，公司将从海外获得整额的美元资金，并在会计上计入权益类科目。本季度末，我们的现金、现金等价物和短期投资总额为RMB 2.474亿。凭借我们强大的手头现金，稳定的流动比例，健康的资产负债率，以及盈亏平衡点的差距不断缩小，我们相信公司有足够的运营资金维持业务稳健的发展。Last but not least, as Lisa mentioned, Boqii's value always go beyond a business.

We believe we have sufficient.

Sufficient in our operation and continue to be solid why do you want me to ask how we don't want you to adding on yen due essentially to the one you didn't eat tranches, which I.

It hasn't forgotten D V Baffin Jewish wasted about Angela you mentioned that one time for example, we don't know what would you ask yourself, what you didn't touch on.

You didn't you.

Hunter you forgot Hawkins Jones, whom have I don't want to intervene.

In fact quite the trying to rule change.

And to do more women.

And now I'd like to talk to that somehow we audience with T C L.

So with all the time.

I mean do you want to come out of Philadelphia, and Jean when do you know it won't be easy.

If you can kind of sometimes.

How do you see in gray.

The tragic but times without when we're talking constantly.

So gene which of your wins in Nevada.

That's about that's not at least as Lisa mentioned sports is value always go beyond belief with eastern Michigan old carrying path to Beth.

Luoyi Dai: With its mission of caring for pets to the best of our ability, especially during the challenging times. We went one step ahead during the quarter through a series of donations and activities that promote guide dogs as well as caring for stray dogs and cats. Supported by our agile supply chain, we were also able to donate pet supplies to various caring centers such as Ni Ayi in Shanghai and Ai Zhijia in Chengdu, satisfying the daily needs of thousands of stray dogs and cats.

Guangyu Luo: With its mission of caring for pets to the best of our ability, especially during the challenging times. We went one step ahead during the quarter through a series of donations and activities that promote guide dogs as well as caring for stray dogs and cats. Supported by our agile supply chain, we were also able to donate pet supplies to various caring centers such as Ni Ayi in Shanghai and Ai Zhijia in Chengdu, satisfying the daily needs of thousands of stray dogs and cats.

Our ability, especially during the challenging times. We went one step ahead during the quarter through a series of donations and activities that promote.

Dogs, as well as Jay dogs and Cats Kerry.

Pockets by hour and Joseph I change, it once or able to donate supplies to Marriott carrying centers such as <unk>.

I eat in Shanghai.

I just got two separate filings they need thousands of stray dogs and cats looking ahead, we will continue with that.

Luoyi Dai: Looking ahead, we will continue with the good deeds as well as we see equal importance between business growth and pet well-being. 最后，正如Lisa所提到的，波奇的价值贡献一直超越了商业本身。我们的使命是尽最大努力关爱宠物，尤其是在这个充满挑战的时期。因此，我们在本季度继续推进这一使命，通过一系列的捐款和公益活动，帮助导盲犬及流浪猫狗。在我们灵活的供应链支持下，我们向上海的米阿姨和成都的爱之家等多个关爱中心捐赠了宠物用品，满足了成千上万只流浪猫狗的日常需求。展望未来，我们将持续推进宠物公益活动，务求在业务增长的同时，坚持为宠物提供幸福的成长环境。Here wraps up my summary. Let's now move on to the Q&A section. Operator.

Guangyu Luo: Looking ahead, we will continue with the good deeds as well as we see equal importance between business growth and pet well-being. 最后，正如Lisa所提到的，波奇的价值贡献一直超越了商业本身。我们的使命是尽最大努力关爱宠物，尤其是在这个充满挑战的时期。因此，我们在本季度继续推进这一使命，通过一系列的捐款和公益活动，帮助导盲犬及流浪猫狗。在我们灵活的供应链支持下，我们向上海的米阿姨和成都的爱之家等多个关爱中心捐赠了宠物用品，满足了成千上万只流浪猫狗的日常需求。展望未来，我们将持续推进宠物公益活动，务求在业务增长的同时，坚持为宠物提供幸福的成长环境。Here wraps up my summary. Let's now move on to the Q&A section. Operator.

Gordon these as well as we see equal importance speaking opinion grows and that's we're happy to hold a general rule.

Besides what he thought of what's there gotcha.

Sean Yes, you mentioned Michel niche. It seems you don't believe it was yesterday do you go out two months out initiatives and so on what's happened to do just your opinion, they usually don't go easily.

So we don't bump into them on TNT.

Yeah without mogul that we're modeling for the Canadian just as a woman it sounds it's not I had to go to into the answer to that.

The only thing we don't have.

Men's wear that since you asked how long someone to knock wood I just don't see.

Women don't shoot trading.

So without you know within Jonathan I'm sure against anyway.

You've only seen for that.

Syndrome cleansing.

He will wrap up my summary, let's now move onto the Q&A section operator.

Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Once again, it is star then one to ask a question. At this time, we will pause momentarily to assemble our roster. The first question comes from Darren Aftahi with Roth Capital Partners. Please go ahead.

We will now begin the question and answer session.

To ask a question you May press Star then one.

On your telephone keypad.

If you were using a speaker phone please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Once again it is.

Star then one to ask a question.

At this time, we will pause momentarily to assemble our roster.

The first question come from Darren <unk>.

<unk> <unk> with Roth Capital Partners. Please go ahead.

Darren Aftahi: Yeah, good evening. Thanks. It's good to speak with all of you. A couple, if I may. I just want to start. Your gross margin continues to kind of improve. Congratulations on that. Where do you think the upper limit is on gross margins as you go forward? What are the initiatives you can put in place to kind of get there?

Yeah. Good evening, Thanks for taking my questions good to speak with all of you.

A couple if I may I just want to start your gross margin continues to kind of improve congratulations on that.

Where do you think the upper limit is on gross margin as you go forward what are the initiatives are.

You can put in place to kind of get there.

Liang Luo: Hi, Darren. Thanks. This is Roy. Thanks for your question. We expect that our gross margin can go up to 30% in the future.

Hao Liang: Hi, Darren. Thanks. This is Roy. Thanks for your question. We expect that our gross margin can go up to 30% in the future.

Hi, Darren this is Mario Thanks for your question.

Our gross margin can go up to 30% in the future.

Okay.

Darren Aftahi: How do you get there from kind of that 22 level today?

And how how do you get there from kind of that 22 level today.

Darren Aftahi: How do you get there from kind of that 22 level today?

Yeah.

Okay.

Luoyi Dai: Firstly, we expect that our proportion of service revenue will continuously increase, and the service revenue gross margin is much higher than the product sales. Secondly, we expect an increased proportion of our private labels, and the private labels gross margin is also higher than the non-private-label brands.

First first.

Guangyu Luo: Firstly, we expect that our proportion of service revenue will continuously increase, and the service revenue gross margin is much higher than the product sales. Secondly, we expect an increased proportion of our private labels, and the private labels gross margin is also higher than the non-private-label brands.

First of all you are we expect that our.

Our proportionate revenue.

Continues.

In Greece and Oh.

That's up to the revenue.

Gross margin is much higher than the products here a.

Secondly, we expect an increased proportion of our private label.

The private label gross margin is also higher than our non probably a neighborhood.

Our brands.

Okay.

Yeah.

Okay.

Darren Aftahi: Great. That's helpful. Can you talk about what spend was for members versus non-members in the quarter and kind of how that's trending over the last couple of quarters?

Great that's helpful.

And then can you talk about what what spend was for members.

One member in the quarter.

How about spending over the last.

A couple of quarters.

Luoyi Dai: About the spending difference between the members and non-members, we find that spending of members is about twice as much as non-members of this quarter.

Guangyu Luo: About the spending difference between the members and non-members, we find that spending of members is about twice as much as non-members of this quarter.

How about the spending.

Any difference than non members.

Are you finding that's been you know a member is about twice as.

Non members.

This quarter.

Darren Aftahi: Got it. Last one for me, on the supply chain, I know in the last couple quarters you kind of talked about how it's a little bit of a challenge to procure some international brands. I'm curious, either in Q2 or kind of what you've seen in July and August and part of September thus far, are you seeing any loosening in the supply chain and your ability to procure international brands? If not, are you substituting those with domestic brands?

Got it and then last one for me.

On the supply chain I know in the last couple of quarters, you've kind of talked about how it's a little bit of a challenge here.

Some international brands.

I'm curious.

Either in the June quarter, or kind of what you've seen in July and.

In August and part of September thus far.

Are you seeing any loosening in the supply chain and your ability to procure.

International brands and if not are you substituting does with domestic brands.

Ella: Okay. Thank you, Darren. Thanks for your question. The lack and the timeliness of overseas brands entering China really have not recovered significantly. We plan to make up for the demand of this part of products through our own private labels and domestic small- and medium-sized brands. We can also see during this quarter, the share of the proportion of the private labels increased from 13% to 17%, while the proportion of the top 10 brands fell from 51% to 48%. We think, through this by leveraging this strategy, we can decrease the influence of the overseas brands stuff. Yeah.

Mandy Luo: Okay. Thank you, Darren. Thanks for your question. The lack and the timeliness of overseas brands entering China really have not recovered significantly. We plan to make up for the demand of this part of products through our own private labels and domestic small- and medium-sized brands. We can also see during this quarter, the share of the proportion of the private labels increased from 13% to 17%, while the proportion of the top 10 brands fell from 51% to 48%. We think, through this by leveraging this strategy, we can decrease the influence of the overseas brands stuff. Yeah.

Okay. Thank you Darren Ah Thanks for your question.

The link and the timeliness of overseas brands are entering China are really have not recovered significantly.

We plan to make up for the demand of this part of product through our own or through our private labels.

Off take small and middle size brands.

And we also see during this quarter the share of the proper preparation of our private our private labels increased from 13% to 17% well the appropriation a proportion of the top town Brown.

It's fell from a 15, 1% to 48% so I think throw I'll throw this ah by leveraging our leveraging days strategy are we think we can.

No.

We can decrease the inflows influence of the the overseas brands stuff yeah.

Darren Aftahi: Just one more if I may add on that comment. Like what's the gross margin you're seeing on your private label versus any kind of brand for that matter?

Just one more if I may on that comment like what's the gross margin youre seeing on your private label versus.

Any kind of brand for that matter.

Right.

Okay.

Ella: Our private, hi Darren. You mean the private labels, the gross margin?

Mandy Luo: Our private, hi Darren. You mean the private labels, the gross margin?

Oh, Hi, there you mean, the private labels are gross margin.

Darren Aftahi: Yeah, I guess what I'm asking is: What is the gross margin you're seeing on private label versus branded product?

Yeah, I guess, what I'm asking is what is the gross margin you are seeing on private label versus branded product.

Hum.

Ella: Yes。Uh-

Mandy Luo: Yes。Uh-

Luoyi Dai: Darren, at this quarter, our private label gross margin is about 33%, and the non private labels gross margin is about 20%. In the future, we expect our gross margin of private labels, we are achieve 35% to 40%. That's why we expect our total gross margin will achieve 30% in the future.

Guangyu Luo: Darren, at this quarter, our private label gross margin is about 33%, and the non private labels gross margin is about 20%. In the future, we expect our gross margin of private labels, we are achieve 35% to 40%. That's why we expect our total gross margin will achieve 30% in the future.

Oh this quarter, our private label gross margin is about.

A 33% and non private label gross margin is about 20%.

In the future we expect our gross margin private label this will be achieved.

5% to 40%.

So.

That's why we expect our.

Total gross margin we are achieved.

Achieve 30% in the future.

Carol Yang: That's helpful. Thank you, Luo, appreciate it.

Darren Aftahi: That's helpful. Thank you, Luo, appreciate it.

That's helpful. Thank you well I appreciate it.

Luoyi Dai: Thank you.

Guangyu Luo: Thank you.

Thank you.

Operator: Again, if you have a question, please press star then one on a touch-tone phone. The next question comes from Zhenwang Li with Specific Securities. Please go ahead.

Again, if you have a question. Please press Star then one on a touchtone phone.

The next question comes from Shan Wang Li with Citic Securities. Please go ahead.

Zhenwang Li: 管理层好，我想请教两个小问题。第一个就是，想请教一下，我们公司接下来自有品牌的发展战略是什么？然后第二个小问题就是，还是想再请公司分享一下，就是疫情对我们的这个经营有什么影响？就这两个问题，谢谢管理层。

Hey, Glenn is and how we're counting go down gosh I wasn't T. J D. You guys are saying I think you guys had just gone through.

I know you got a fine balance that as you said.

Oh, Yeah. This is Alan can you just say Oh I just found that Kim Goldman Sachs.

They want the taken King in Yorkshire.

So if you want to go down, but I wouldn't be saying their bodies.

Yeah.

Yingzhi Tang: 李总，谢谢您的提问，那我来回答一下。这个品牌的战略，就是在之前我们主要也是会通过大数据来判断，来发掘市场上的一些供需或者用户需求上的一些痛点，然后来倒推在供应链上的一些应用，来研发我们自己有特色的一些自有品牌的产品。那在未来我们会把这个策略在上游端继续跟更多的工厂去做紧密的合作。同时在仓储配送上也会跟自有品牌的产品线去做更多的定制化的一些服务，使得能够满足多渠道的一个销售的应用场景。然后第二个疫情，坦白说这个四到六月份就是上海当时正好是疫情比较严重的时候，是有一些影响的，主要是对上海地区的这个用户的服务。那段时间除了公益的事项，我们其他的零售的跟销售的业务基本上就已经暂停了。那么这个情况也对整个的行业，甚至可能不止宠物行业，我相信可能多少今年都会有一些影响。但目前我们看到比较好的是在疫情之后，现在虽然各地零星的都还是会有一些为了防疫的一些措施的管控，但是整个大行业的用户的需求，人宠陪伴的紧密程度，还有用户在宠物身上有投入了更多的时间关爱，能够发掘出来的一些新的宠物本身其实就已经存在的需求，但可能以往就是没有那么多时间去陪伴，所以有些需求可能是被忽视的。所以用户对于产品的专业度，对宠物的健康的关注度其实会有进一步的提升。所以未来我们也会在专业的产品线上去做更多的一些挖掘，来匹配和满足用户这一部分的需求。谢谢。

Is that something that you like.

No one else.

The tenure than.

Just that she's humans really enjoyed talking with actual G that dependent fashion.

She teleshopping here Oh shoot.

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Elements could you tell us anything.

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Okay.

Yeah.

Operator: Did you have a follow-up, Zhenwang Li?

Did you have any follow up.

Gen One Lee.

Zhenwang Li: 非常，非常清楚。感谢管理层。我没有其他问题了。好，谢谢。

Hi, payoffs bouncing to archive.

Well now, let's see how long did you say.

Yingzhi Tang: 好的，谢谢，谢谢。

Hi, Ben.

Yeah.

Operator: Okay, if you're ready for the next question. The next questioner is Carol Yang with Huafu Securities. Please go ahead.

Okay, if you're ready for the next question.

The next questioner is Carol Yang with.

<unk> Securities. Please go ahead.

Carol Yang: 管理层你们好，我这边想请教一个比较短的问题，就是在当前的股价下，公司未来是否有回购或是增持一个计划呢？

Likewise in my house, where his answers.

That's like the ones you just said.

Was that done so that's how it goes through but actually for Yoplait go watch it sounds pretty good too.

Liang Luo: 你好你好，谢谢你的问题。是这样的，我们其实目前希望在自有资金相对来说比较充足的前提下，然后把更多的资金去投入到我们的公司运营中。因为可能公司业绩才是回报股东最好的一种方式吧。然后加上我们现在已经慢慢可以验证我们的实际盈利能力了，所以未来我们希望更多地去提升我们的业绩，然后来更好地去回报股东在这一方面。当然就是也不排除在一些合适的时机下，我们其实也会考虑就是做这个回购跟增持的行为。

Hao Liang: 你好你好，谢谢你的问题。是这样的，我们其实目前希望在自有资金相对来说比较充足的前提下，然后把更多的资金去投入到我们的公司运营中。因为可能公司业绩才是回报股东最好的一种方式吧。然后加上我们现在已经慢慢可以验证我们的实际盈利能力了，所以未来我们希望更多地去提升我们的业绩，然后来更好地去回报股东在这一方面。当然就是也不排除在一些合适的时机下，我们其实也会考虑就是做这个回购跟增持的行为。

And how many houses into Lindsay.

<unk> shut down the well known tissue intensive all right. So today it sounded I suppose without holes of the turnkey sorry, I hope I can do this disease. She told with all women the particular Oh.

Anyway cannot go see as you've had a shelf with all of them to Holohedral Hushaby, Oh gosh, almost since day one.

Angel So she didn't mean, neither so we rely on which they are all are gonna daughter Chi Chi you shouldn't be at all like how much does.

Oh, I'm, sorry, I was.

Usually a patchwork I feel closer to that woman tissue quick holiday, so logical illegal guns interestingly.

Carol Yang: 啊，好的，谢谢李大总。

Uh huh.

Liang Luo: 好，谢谢。

Hao Liang: 好，谢谢。

Gosh it.

Yeah.

Operator: Okay, was there a follow-up, Ms. Yang? Okay, this concludes our question and answer session and Boqii's fiscal 2023 Q1 earnings conference call. Thank you for attending today's presentation. You may now disconnect.

Okay.

A follow up Ms Lynn.

Okay. This concludes our question and answer session and Booties fiscal 2023 first quarter earnings Conference call. Thank you for attending today's presentation. You may now disconnect.

Yeah.

Okay.

[music].

Okay.

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