Q3 2023 Full Truck Alliance Co Ltd Earnings Call
Speaker 1: Ladies and gentlemen, good day and welcome to Food Truck Alliance's third quarter 2023 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mao Mao, Head of Investor Relations. Please go ahead.
Ladies and gentlemen, good day and welcome to Ford Truck Alliance's third quarter 2023 earnings Conference call.
Today's conference is being recorded.
At this time I would like to turn the conference over to Malmo head of Investor Relations. Please go ahead.
Speaker 2: Thank you, operator. Please note that today's discussion will contain forward-looking statements relating to the company's future performance, which are intended to qualify for the safe harbor form liability as established by the U.S. private securities litigation reform act.
Thank you operator. Please note that today's discussion will contain forward looking statements relating to the company's future performance, which are intended to qualify for the safe Harbor from liability.
Satish five U S Private Securities Litigation Reform Act.
Speaker 2: Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions, and other factors. Some of these risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and.
Statements are not guarantees of future performance and are subject to certain risks and uncertainties assumptions and other factors.
Some of these risks are beyond company's control and could cause actual results to differ materially from those mentioned in today's press release and discussion.
Speaker 2: A general discussion of the risk factors that could affect FDA's business and financial results is included in certain filings of the company with the SEC. The company does not undertake any obligation to update this forward-looking information except as required by law.
A general discussion of the risk factors that could affect <unk> business and financial results is included in certain filings of the company with the SEC. The company does not undertake any obligation to update forward looking information, except as required by law.
Speaker 2: During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today.
On today's call management will also discuss certain non-GAAP financial measures for comparison purpose only for a definition of non-GAAP financial measures and a weaker for the issue of GAAP to non-GAAP furniture without please see the earnings release issued earlier today.
Speaker 2: Joining us today on the call from FDA's senior management are Mr. Hui Zhang, our founder, chairman, and CEO , and Mr. Simon Tsai, our CFO . Management will begin with prepared remarks, and the call will conclude with a Q&A session.
Joining us today on our call from Pepsi, a senior management measure.
And Mr. Li Zhang our founder Chairman and CEO and Mr. Simon <unk> our CFO.
Well begin with prepared remarks, and the call will conclude with a three day session.
Speaker 2: As a reminder, this conference is being recorded. In addition, a webcast replay of this call will be available on FJ's investor relations website at ir.foltruckalliance.com.
A reminder, this conference is being recorded in addition, a webcast replay of this call will be available on <unk> Investor Relations website at IR got full truck lines dotcom.
Speaker 2: I will now turn the call over to our founder, chairman, and CEO , Mr. Zhang. Please go ahead, sir.
I'll now turn the call over to our founder Chairman and CEO. Mr. Zhang. Please go ahead Sir.
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Speaker 3: We have been producing products for more than 10 years. These 10 years are the 10 years of digital transformation in China's public logistics industry. We have been constantly polishing products and services through on-site digitalization and smartization, and have gained the trust of a large number of suppliers and suppliers.
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Speaker 3: From scratch, we have now covered more than 300 cities across the country, 100,000 line routes, tens of thousands of shipping and harvesting sites, more than 200 industrial products and consumer goods, forming a solid national network effect and voice box.
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Speaker 3: We will continue to uphold the core demands of the multi-million-dollar user base, and work to build a company-wide logistics platform based on logistics competitiveness for rich enterprises. We will do our best to support 30 million small and medium-sized enterprises.
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Speaker 2: Hello everyone. Thank you for joining us today on our third quarter 2023 earnings conference call.
Hello, everyone. Thank you for joining us today on our first quarter of 2023 earnings conference call entering the second half of 2023, B Mab has ushered in the 10th anniversary of its Oh gosh. This decade have witnessed the digital transformation of China real transportation industry.
Speaker 2: Entering the second half of 2023, the Yunmeng app has ushered in the 10th anniversary of its launch. This decade has witnessed the digital transformation of China's road transportation industry. And as a leader in the industry, we have continuously improved our products and services through offline to online migration, digitalization, and intelligentization, gaining trust among our shippers and truckers.
And as a leader in the industry, we have continuously improved our products and services through offline to online migration.
Asian, and encourage innovation gaining trust among our shippers in truckload, we started from scratch and now cover over 300 cities across the country with more than 100000 shipping routes tens of minutes of shipping and receiving and location and over 200 tons of cargo.
Speaker 2: We started from scratch and now cover over 300 cities across the country with more than 100,000 shipping routes, tens of millions of shipping and receiving locations, and over 200 types of cargo from industrial and consumer categories.
Industrial and consumer categories.
Speaker 2: This has gradually formed a robust nationwide network effect and a highly competitive mode.
This has gradually formed a robust nationwide network effects and a highly competitive moat.
Speaker 2: centered around our core user value proposition of plentiful, fast, quality, and value for money, we will strive to empower enterprises with greater logistics competitiveness through the building of a one-stop logistics platform for 30 million small and medium-sized enterprises in China.
Around our core use about a prohibition of plentiful fought quality and value for money, we will strive to empower enterprises with greater logistics competitiveness through the beauty of a one stop logistics platform for 330 million small and medium sized enterprises in China.
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Speaker 3: Since the first week, we have been operating the product on the user scale. We have increased the number of orders and increased the number of orders by 15%, and the number of orders has increased by 27%. We are constantly expanding the size of our customers.
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Speaker 3: 688 and non-membership travel orders have increased by 32%, up to a total of 45%. In terms of product operation, it is a good car product for direct customers. Through real-time analysis, economic suggestions and methods, and differentiated travel services, it helps new users solve shipping and travel problems, effectively promoting the growth of new users. The enterprise version suitable for professional logistics is also being steadily promoted.
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Speaker 3: In terms of transport supply, we have further enhanced the mechanized management of direct supply, improved direct supply skills, improved transport security, promoted the increase in transport scale and the increase in the amount of direct wallet, and fully optimized the transport supply and batch design.
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Speaker 3: to drive the efficiency of the transaction. There is no need for electricity. The direct order of the order gets faster growth. In terms of one-time service contribution, the penetration rate of upgraded business such as insurance and financial insurance continues to expand.
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Speaker 3: The customer service center has been upgraded to a 24-hour, 365-day full-day service that responds to users' requests at any time. At the same time, we have also simplified the process of introducing artificial customer service, improving the customer service logo and judgment system of private transactions, striving to solve the fundamental problems of private transactions and improve users' satisfaction.
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Speaker 2: Let me provide an update on our progress in the third quarter. During the quarter, we have steadily improved in five key areas, user skills, products, operations, supply of truckers, platform ecosystem, and user experience.
Let me provide an update on our progress in the third quarter during the quarter. We have steadily improved in five key areas you just scale product operations supply of truckers platform ecosystem and user experience.
Speaker 2: First, regarding user scale, we have reached 2.13 million monthly active shippers, a 15% year-over-year increase, which drove a 27% year-over-year increase in the number of fulfilled orders. Notably, the scale of direct shippers continued to increase, with order volume from 688 members and non-member shippers growing by 32% year-over-year and accounting for 45% of total order volume.
First regarding your the scale, we have reached 2.13 million monthly active shippers.
But then year over year increase which drove a 27% year over year, increasing the number of field artist, notably the skill structure paired continued to increase with order volumes from six to eight members and the number of shippers to growing by 42% year over year and accounting for 45% of total order value.
Speaker 2: Turning to product operation, our interstitial model, a niche product for direct shippers, has effectively attracted new users by addressing their needs through refined pricing algorithms.
Turning to product operation, our interested shipment put model a niche product for direct shippers.
Effectively attracted new users by addressing their needs through refined pricing Argos.
Speaker 2: and improved fulfillment services. We are also working on the launch of an enterprise edition targeting professional.
And in crude fulfillment services we.
We're also working on the launch costs and enterprise editions targeting professional.
Speaker 2: Moving on to the trucker's supply, we have further enhanced our tiered trucker rating system, enabling truckers to improve their performance capability and strengthen transportation support, eventually leading to an expanded trucker's supply and ownership gain.
Well, we want you the trucker supply we have further enhanced our T a truck or a rating system, enabling truckers to improve their fulfillment capability and it's dragged on transportation support eventually leading to an expanded truckload supply and what is your game.
Speaker 2: Adequate transportation capacity supply and optimized matching sub-sheets have significantly enhanced fulfillment efficiency.
Adequate transportation capacity supply and optimized matching set sheets have significantly enhanced fulfillment efficiency.
Speaker 2: For instance, the pre-price transaction allowed truckers to respond directly to order postings without price negotiation, and the order volume for pre-price transactions, including tap-and-go and in-transit shipments, continued to grow faster than the overall order volume in the third quarter.
For instance, the pre private connections allow truckers to respond directly to order posting without price negotiation and the order volume for pre price transactions, including turbine go and interested in shipments continued to grow faster than the overall or the volume in the third quarter.
Speaker 2: Looking at our platform ecosystem, with goal of establishing a one-stop logistics platform, we have witnessed an increased user penetration of our value-added services, such as insurance and credit solutions, as well as free brokerage services, which in turn contributed to a higher user stickiness for both shippers and trucker members.
Looking at our platform ecosystem with go of establishing a one stop logistics platform. We have witnessed an increased use of penetration of our value added services, such as insurance and the cardio solution as well as freight brokerage services, which in turn contributed to a higher user stickiness for both shippers.
Trucker members.
Speaker 2: Lastly, in addition to product functionality upgrades, we highly value the user experience. This quarter, we upgrade our customer service center to provide 24-7 services, prominently addressing user queries. Through simplified user access, we have streamlined the process of collecting user feedback, providing efficient end-to-end service, genuinely helping shippers and truckers solve problems, and therefore improving user satisfaction.
Lastly, in addition to product functionality upgrades, we highly value that user experience. This quarter, we upgrade our customer service centers to provide the 20 473 years.
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Speaker 3: With the expansion of the business scale, our revenue and profit levels are also rising in this quarter, and the income has increased by 25.2% in this quarter, reaching 22.6 billion yuan.
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Speaker 3: After the adjustment of non-US accounting standards, the net profit has increased by 67.6% and reached 8.3 billion yuan. In the future, we will continue to optimize the platform income structure and improve the transformation efficiency to create greater value for our customers.
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Speaker 2: Moving on to our financial highlights, we delivered another record-setting quarter in both our top line and bottom line, driven by our further expanded business footprint.
Moving along to our financial highlights we delivered another record setting quarter in both our top line and the bottom line driven by our further expanded business footprint.
Speaker 2: Our third quarter revenues grew by 25.2% year-over-year to RMB 2.26 billion, and the non-GAAP-adjusted net income reached RMB 827 million, up 67.6% year-over-year, both surpassing market expectations. As we expand our revenue scale going forward, we will continue to optimize our revenue mix and elevate monetization efficiency, creating more value for our shareholders.
Our third quarter revenues grew by 25, 2% year over year to RMB 226 billion and non-GAAP. Adjusted net income reached RMB 827 million up 67, 6% year over year, both the policy market expectations as we expand our revenue scale going forward.
We will continue to optimize our revenue mix and elevated monetization efficiency, creating more value for our shareholders.
Speaker 3: In the fourth quarter, the country launched a series of policies to support the development of the private economy. In the process of strengthening the industry chain and reinforcing the industry chain, we have gained more and more important status and support as a support base for the real economy. We are also confident in the continued growth of platform business units and income. We will continue to increase investment in basic innovation and user experience.
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Speaker 3: We will continue to work to provide more efficient, smarter, and greener logistics solutions, so that corporate logistics can be more competitive. We will continue to promote the business flow of enterprises to be more competitive. Manbang will continue to follow the concept of open sharing and work with partners to promote the digital transformation and progress of the logistics industry.
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Looking ahead to the fourth quarter. The government has introduced a series of policy supporting the development of the private economy, where logistics as a backbone of the real economy has gained increasing importance and policy support within the process of strengthening supplementing and extending the industry.
Speaker 2: Looking ahead to the fourth quarter, the government has introduced a series of policies supporting the development of the private economy, where logistics, as a backbone of the real economy, has gained increasing importance and policy support within the process of strengthening, supplementing, and extending the industry chain. With the ongoing macro tailwind, we are confident in achieving sustained growth in order volume and revenue scale.
And with the ongoing macro telling we are confident in achieving sustained growth in order volume and revenue scale. We will continue to invest in technological innovation and user experience dedicated to providing more efficient intelligent and convenient logistics solutions to create greater.
Speaker 2: We will continue to invest in technological innovation and user experience dedicated to providing more efficient, intelligent, and convenient logistics solutions to create greater value for our users as we make logistics hassle-free.
For our users as we make logistics type of fleet, we are determined to drive progress across the wider industry in collaboration with all colors fostering an open ecosystem that benefits Hall.
Speaker 2: We are determined to drive progress across the wider industry in collaboration with our partners, fostering an open ecosystem that benefits all.
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Speaker 2: Thank you everyone. Let me pass the call over to our CFO Simon who will provide an update on our third quarter business progress and the financial results.
Thank you everyone. Let me pass the call over to our CFO, Simon who will provide an update on our slick water business progress and financial to Dallas.
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Speaker 4: Thank you, Mr. John , and thanks everyone for making time to join our earnings call today. I will start with our operational highlights for the third quarter of 2023 and then provide a brief overview of our financial results before the Q&A session.
Thank you Mr. John and thanks, everyone for making time to join our earnings call today.
Start with our operational highlights for the first quarter of 'twenty three.
Then provide a brief overview of our financial results before the Q&A session.
Speaker 4: We delivered another record-setting quarter with many operational and financial improvements. Our fulfilled orders increased by 27 percent year-over-year during the third quarter. On a monthly basis, the average daily fulfilled orders from July to September showed a sustained upward trend, hitting historical highs almost each month.
We delivered another record setting quarter with many operational and financial improvements are fulfilled orders increased by 27% year over year.
During the third quarter on a monthly basis. The average daily fulfilled orders from July to September showed a sustained upward trend.
Historical highs almost each month.
Speaker 4: The main drivers of this growth were the ongoing expansion of user scale and due end users increased engagement. Our ability to continuously deliver both top line growth and margin expansion in the past three years in a highly volatile macro environment demonstrates an irreversible trend of online digitalization of the road transportation industry in China.
The main drivers of this school or the ongoing expansion of user scale and do end users increased engagement, our ability to continuously deliver both topline growth and.
Margin expansion in the past three years and the highly volatile macro environment demonstrates anything.
Irreversible trend.
All lines digitalization of the road transportation industry in China.
Our average fulfillment rate for the quarter reached 29% an improvement of more than four percentage points year over year.
Speaker 4: Our average fulfillment rate for the quarter reached 29 percent, an improvement of more than 4 percentage points year over year. Among them, the average quarterly fulfillment rate of both 688 member and non-membershipers rose to roughly 50 percent respectively.
All of them the average quarterly fulfillment rate of both 688 members and nonmembers shippers rose to roughly 50% respectively.
Speaker 4: With the order contribution from these two types of low and medium frequency shippers continue to grow, the overall fulfillment rate of our platform will further increase.
With the order contribution from these two type types of low and medium frequency shippers continue to grow the overall fulfillment of our platform.
We will further increase.
Speaker 4: Furthermore, we continue to manage and educate users on their order cancellation behavior. For example, as of the third quarter, the trucker's status can be identified based on data collected from trucker punch-ins and trajectories.
The more we continue to manage and educate users on their order cancellation behavior.
For example, as of the third quarter. The truckers status can be identified based on data collected from truck or Punchings and trajectories.
Speaker 4: When a shipper tries to cancel an order that was dispatched, a reminder window will pop up on the app, reducing the chance of shipper canceling the order by mistake.
When that when a shipper tries to cancel an order that was dispatched a reminder, window will pop up on the up reducing the chance of Super canceling the order by mistake at this.
Speaker 4: At the same time, we emphasize the importance of online fulfillment for shippers to accumulate credit, providing reminders when they show the tendency to transact offline and gradually cultivate their fulfillment habits.
Same time, we emphasize the importance of online fulfillment for shippers to accumulate credit providing reminders when they show the tendency to transact offline and gradually cultivate their fulfillment habits.
Speaker 4: Looking ahead, we will continue to mitigate malicious order cancellations and reinforce the consciousness and behavior of closed-loop transactions for due-end users through a series of incentives and control policies.
Looking ahead, we will continue to mitigate malicious order cancellations and reinforce the consciousness and behavior of close loop transactions for end users through a series of incentives and control policies.
By user types. The order contribution from six eight to eight members and nonmembers shippers as increased alongside a number of direct shippers, reaching 45% during the quarter more.
Speaker 4: By user type, the order contribution from 688 member and non-member shippers has increased alongside the number of direct shippers, reaching 45% during the quarter. More importantly, the contribution of pre-priced orders such as tap and go and entrusted shipment models mainly used by direct shippers has also improved, while the proportion of negotiated orders fell further this quarter.
More importantly, the contribution of pre priced orders such as tap and go and entrusted shipment models, mainly used by direct shippers has also improved while the proportion of negotiated holders. So this quarter.
Speaker 4: In addition, we have further streamlined the transaction process and improved the user experience. For example, for users of our entrusted shipment model, we have greatly improved their shipping and fulfillment experience by creating real-time order trajectory visuals, which in turn is driving the rapid order growth for that service sector.
In addition, we have further streamlined the transaction process and improved user experience.
For example for users are following trusted ship them shipment model, we have greatly improved their shipping and fulfillment experience by creating real time order trajectory visuals, which in turn is driving to wrap it all equals four that service segment.
Speaker 4: We believe that the other contribution from direct shippers will further advise as we continue to optimize the accessibility of our app.
We believe that the order contribution from direct shippers will further lives as we continue to optimize that.
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Moving on to our users our average shipper mouse reached another record high of 2.13 million up 15% from the same period last year and six 7% from the previous quarter the.
Speaker 4: Moving on to our users, our average shipper miles reached another record high of 2.13 million, up 15% from the same period last year, and 6.7% from the previous quarter. The increase mainly came from the continued growth of 688 member and non-member shippers. The vast majority of...
The increase mainly came from the continued growth of 688 members and nonmembers shippers.
The vast majority of which are direct shippers.
Speaker 4: During the quarter, we continue to provide more user-friendly products and services based on our core value proposition of plentiful, fast, quality, and value for money. Comprehensively tackling users' pain points and meeting various shippers' diverse freight needs to bolster our shipper penetration rate in the long-haul transportation market.
During the quarter, we continued to provide more user friendly products and services based on our core value proposition of plentiful fast quality and value for money.
Prehensile fleet tackling user's pain points and meeting various shippers diapers freight needs to bolster our shipper penetration rate in the long haul transportation market.
Speaker 4: In parallel, we are pleased to see that trucker activities has also remained high since the third quarter, with the number of active truckers fulfilling orders through FTA over the past 12 months climbing to 3.79 million and the trucker user base growing steadily quarter over quarter.
In parallel we were pleased to see that trucker activities has also remained high since the third quarter with the number of active truckers fulfilling orders through F. T over the past 12 months climbing to 379 million and a trucker user base growing steadily quarter over quarter.
Speaker 4: On top of that, our 12-month rolling retention rate of shipper members and next month's retention of truckers who responded to orders remains stable quarter over quarter, demonstrating that we continue to boost user engagement and stickiness.
On top of that our 12 month rolling retention rate of shipper members and next months retention of truckers, who responded to others remained stable quarter over quarter, demonstrating that we continue to sort.
Engagement and stickiness.
Speaker 4: Lastly, our online transaction service sustained strong growth momentum in the third quarter, with revenues amounting to RMB 602.1 million, up 54.3% year-over-year, mainly due to the solid growth in the number of field orders and the increase in commissions per order.
Lastly, our online transaction service sustained strong growth momentum in the third quarter with revenues amounting to RMB 602.1 minute.
54, 3% year over year, mainly due to the solid growth in the number off a few others and the increase in commissions.
For other.
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Speaker 4: Our commission model covered approximately 58% of the field orders and generated an average commission per order of RMB 24.3.
Our commission model covered approximately 58% off a few of the others and generated an average commission per order of RMB 24 three.
During the quarter.
Speaker 4: Going forward, we will continue to optimize the commission rate and extend our commission model coverage while providing more value-added services to our users.
Going forward, we will continue to optimize the commission rate and extend our commission model coverage, while providing more value added services to our users.
Speaker 4: Before going over to this quarter's financials, I will quickly review the progress of our share repurchase program. From August the 23rd to November 17th,
Before going over to the to this quarter's financials I will quickly review the progress of our share repurchase program from August 23rd two November 17th.
Speaker 4: We repurchased approximately 3.3 million ADF shares, totaling approximately $23 million.
We repurchased approximately three 3 million shares totaling approximately.
23 million U S dollar.
Speaker 4: Since we announced the program, we have repurchased a total of around 22.8 million ADF shares from the open market, with a total value of approximately $147 million.
Since we announced the program, we have repurchased a total of around.
$22 8 million shares from open market with a total value of approximately.
$147 million.
Speaker 4: Looking ahead, we'll continue to reward our shareholders through buyback.
Looking at the looking ahead, we will continue to reward our shareholders through buybacks.
Speaker 4: Now I'd like to provide a brief overview of our 2023 third quarter financial results. Our total net revenues in the third quarter were RMB $2,263.9 million, representing an increase of 25.2% year over year. The increase in revenue was primarily attributable to an increase in revenues from freight matching services.
Now I'd like to provide a brief overview of our 2023 third quarter financial results, our total net revenue.
In the third quarter were RMB 2 billion $263 9 million, representing an increase of 25.2% year over year the.
The increase in revenue was primarily attributable to an increase in revenues from freight matching services.
Speaker 4: Revenues from freight matching services, including service fees from freight brokerage models, membership fees from listing models, and commissions from online transaction services, were RMB $1,904,400,000 in the third quarter, representing an increase of 25.8% year-over-year, primarily due to an increase in revenues from freight brokerage service, as well as continued growth in transaction commissions.
Revenues from print matching services, including service fees from our freight brokerage models membership fees from lithium models and commissions from Olin transaction services.
<unk> 1 billion $904 4 million in the third quarter, representing an increase of 25, 8% year over year, primarily due to an increase in revenues for freight brokerage services as well as continued continued growth in transaction commissions.
Revenue from freight brokerage service in the third quarter were RMB 1 billion and 74 2 million.
Speaker 4: Revenue from freight brokerage service in the third quarter were RMB 1 billion and 70.2 million, up 18.4% year-over-year, primarily attributable to the continued growth in transaction volume as a result of strong user demand.
Up 18, 4% year over year, primarily attributable to the continued growth in transaction volume as a result of strong user demand.
Speaker 4: Revenues from freight listing service in the third quarter were on the 232.1 million up 5.6 percent year-over-year primarily due to an increased number of total pain record
Revenue for freight listing service in the third quarter.
The $232 1 million up five 6% year over year, primarily due to an increased number of total paying members.
Speaker 4: Revenues from transaction commissions amounted to RMB 602.1 million in the third quarter, up 54.3% year-over-year, primarily driven by an increased order volume as well as higher transaction commission per order.
Revenues from transaction commissions amounted to RMB $602 1 million in the third quarter.
Up 64, 3% year over year, primarily driven by energy and increased order volume as well as higher transaction Commission per order.
Revenues from value added services in the quarter were RMB $359 5 million.
Speaker 4: Revenues from value-added services in the quarter were RMB 359.5 million, up 22.1% year-over-year, mainly attributable to an increase in revenues from credit solutions and other value-added services.
22, 1% year over year, mainly attributable to an increase in revenues from credit solutions and other value added services.
Our cost of revenues in the third quarter were RMB, one 1 billion and the 100 a one.
Speaker 4: Our cost of revenues in the third quarter were RMB 1 billion and 142.1 million compared with RMB 953 million in the same period last year.
$142 1 million compared with RMB 953 million in the same period last year.
Speaker 4: The increase was primarily due to an increase in BET-related tax surcharges and other tax costs, net of tax refund from government authorities.
The increase was primarily due to an increase in E. T related tax surcharges and other tax costs net of tax refund from government authorities. These tax related costs net of refunds totaled RMB 1 billion and $32 5 million, representing an increase of 19.1.
Speaker 4: These tax-related costs net of refunds totaled RMB 1 billion and 32.5 million, representing an increase of 19.1 percent year-over-year, primarily due to continued increase in transaction activities involving our freight brokerage service.
Per cent year over year, primarily due to continued increase in transaction activities involving all freight brokerage service.
Our sales and marketing expenses in the third quarter were RMB $219 8 million compared with RMB $232 9 million in the same period of 2022.
Speaker 4: Our sales and marketing expenses in third quarter were RMB 290.8 million compared with RMB 232.9 million in the same period of 2022. The increase was primarily due to an increase in advertising and marketing expenses for user acquisition.
Increase was primarily due to an increase in advertising and marketing expenses for user acquisition acquisitions.
Speaker 4: General and administrative expenses in the third quarter for RMB 290.4 million compared with RMB 206.6 million in the same period last year.
General and administrative expenses in the third quarter were RMB 294 million compared with RMB $206 6 million in the same period last year.
Speaker 4: The increase was primarily due to higher share-based compensation, expenses, and the settlement of the U.S. securities class action, which was disclosed in the Form 6K filed on September 18, 2021.
The increase was primarily due to higher share based compensation expenses and the settlement of the U S Securities class action, which was disclosed in our form 6K filed on September 18th 2023.
Speaker 4: RMB expenses in third quarter were RMB 237.7 million compared with RMB 226.6 million in the same period last year. The increase is primarily due to higher share-based compensation expenses.
R&D expenses in the third quarter were RMB, $237 7 million compared with RMB $226 6 million in the same period last year. The increase was primarily due to higher share based compensation expenses.
Our income from operations in the quarter was RMB 247, 5 million an increase of 74, 4% from RMB $141 7 million in the same period last year.
Speaker 4: Our income from operations in the quarter was RMB 247.5 million, an increase of 74.4% from RMB 141.7 million in the same period last year.
Speaker 4: Net income in the fifth quarter was RMB 618.4 million, an increase of 56.4 percent from RMB 395.5 million in the same period last year.
Net income in the fourth quarter was RMB $618 4 million an increase of 56, 4% from RMB 395 5 million in the same period last year.
Speaker 4: Under non-GAAP measures, our adjusted operating income in the third quarter was RMB458.5 million, an increase of 88.8% from RMB242.8 million in the same period last year.
On the non-GAAP measures or adjusted operating income in the third quarter was RMB $458 5 million, an increase of 88.8% from RMB 200, $242 8 million in the same period last year.
Speaker 4: Our adjusted net income in the third quarter was RMB 826.6 million, an increase of 67.6 percent from RMB 493 million in the third quarter.
Our adjusted net income in the third quarter was RMB $826 6 million, an increase of 67, 6% from RMB 400.
<unk> 3 million.
The same period last year.
Basic and diluted net income per ads were RMB 0.58 in the third quarter compared with basic and diluted net income per ads of RMB 0.37 in the same period last year.
Speaker 4: Basic and diluted net income per ADS, or RMB 0.58 in the third quarter, compared with basic and diluted net income per ADS of RMB 0.37 in the same period last
Speaker 4: non-GAAP adjusted basic and diluted net income per ADS, or RMB 0.78, in the third quarter compared with RMB 0.46 in the same period last year.
non-GAAP adjusted basic and diluted.
Net income per ads were RMB <unk> 78 in the third quarter compared with RMB 0.46 in the same period last year.
Okay.
Speaker 4: As of September 30, 2023, the company had cash and cash equivalents, restricted cash, shortened investments, long-term time deposit and wealth management products of RMB 27.4 billion in total, compared with RMB 26.3 billion as of December 31, 2022.
As of September 30, 2023, the company had cash and cash equivalents.
Cash short term investments long term time deposits and wealth management products of RMB 27, 4 billion in total compared with RMB $26 3 billion as of December 31st 2022.
Speaker 4: In the third quarter this year, net cash provided by operating activities was RMB 717.1 million.
In the third quarter. This year net cash provided by operating activities was RMB $717 1 million.
Speaker 4: For our business outlook for the coming quarter, in the first quarter of 2023, we expect our total net revenues to be between RMB 2.27 billion and RMB 2.32 billion, representing a year-over-year growth rate of approximately 18.2 percent to 20.6 percent.
For our business outlook for the coming quarter and the first quarter of 2023 we expect our total net revenues to be between RMB 2.27 billion and RMB 2.32 billion, representing a year over year growth rate of approximately.
The 18, 2% to 26%.
Speaker 4: This forecast reflects the company's current and preliminary views on the market and operational conditions, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.
This forecast reflect the company's current and preliminary preliminary views on the market and operational conditions, which are <unk>.
Subject to change and cannot be predicted with reasonable accuracy as up to date hereof.
Speaker 4: That concludes our prepared remarks. We would now like to open the call to Q&A. Operator, please go ahead.
That concludes our prepared remarks.
I would like to open the call to Q&A operator. Please go ahead.
We will now begin the question answer session.
Speaker 1: We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone.
To ask a question you May Press Star then one on your Touchtone phone.
Speaker 1: If you are using a speakerphone, please pick up your handset before pressing the keys.
If youre using a speakerphone 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.
Speaker 1: If at any time your question has been addressed and you would like to withdraw your question, please press star then two.
Speaker 1: for the benefit of all participants on today's call. If you wish to ask your question to management in Chinese, please immediately repeat your question in English.
For the benefit of all participants on today's call. If you wish to ask your question to management in Chinese please.
Immediately repeat your question in English.
Speaker 1: At this time, we will pause momentarily to assemble our roster.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Ronald Keung with Goldman Sachs. Please go ahead.
Speaker 1: The first question comes from Ronald Kyung with Goldman Sachs. Please go ahead.
Speaker 5: Thank you, President Zhang. Thank you, Simon.
Yeah.
Hi, Matt.
Yeah, No woman 92 with Jaguar.
Speaker 5: In the third quarter, the share price of Luyue increased by 27%, which exceeded market expectations. What are the main driving forces behind the increase in the share price? What are the expected orders for Luyue in the fourth quarter?
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Speaker 5: Thank you, Zhang Huizong and Simon. In the third quarter, we've seen that the number of fulfilled orders increased quite heavily.
Thank you Simon.
And then in the third quarter, we've seen that the number of fulfilled orders increased quite healthily.
Speaker 5: 27-percent year-on-year. What were the key drivers of the growth in fulfilled order and
27% year on year.
What were the key drivers of the growth and order and what do you expect for the trend in the fourth quarter. Thank you.
Speaker 6: what do you expect for the trend in the fourth quarter? Thank you.
Okay.
Thank you Ronald.
Speaker 4: In the third quarter, we witnessed sustained growth in other volumes within the full truckload low-haul sector, and this growth can be primarily attributable to two key drivers.
In the third quarter, we witnessed a sustained growth in other volumes within the food truckload local sector.
And this growth can be primarily attributable to two key drivers.
Speaker 4: First, our growing shipper base and our further optimized product features have led to an increase in usage by our existing users.
First our growing shipper base and are further optimized product features have led to an increase in usage by our existing users.
Speaker 4: And this trend stands from the nationwide shift towards more efficient matching and platform-based solutions.
This trend stems from the nationwide shift towards more efficient matching and platform based solutions.
Speaker 4: and gradually replacing traditional offline models. And users naturally choose to use platform that offer competitive advantage.
And gradually replacing traditional offline models and users naturally choose to.
To use the platform that offer competitive advantages. Additionally.
Speaker 4: Additionally, our unique business model and exceptional network effects have also significantly contributed to our order growth.
Additionally, our unique business model and exceptional network effects at all.
Also significantly contributed to our order growth.
Speaker 4: We selected a sample group of shippers who were active since 2021, and we found that the volume of fulfilled orders for this group of users increased by about 15% year-over-year in the third quarter.
We selected a group a sample group a shipper or active since 2021, and we found that the quality of our food orders for this group of users increased by about 15% year over year in the third quarter.
Speaker 4: Let this illustrate our platform's resilience and stickiness.
This illustrates our platform's resilience and stickiness.
Speaker 4: as well as our strong network effect and extremely high entry barriers we have established in the long haul growth trade industry.
As well as our strong network effect and extremely high entry barriers, we have established in the long haul trade industry.
Speaker 4: The nationwide coverage and robust defensive mechanism of our platform created an irreplaceable advantage in the market.
The nationwide coverage and robust defensive Mccann isn't enough our platform created an irreplaceable advantage in the market.
Speaker 4: Looking forward to the fourth quarter, we anticipate that in line with the continued expansion of our user base, the steady improvement in our user engagement and stickiness coupled with the arrival of the peak freight season and the volume of fulfilled orders will continue.
I'm looking forward to the fourth quarter, we anticipate that in line with the continued expansion of our user base the steady improvement in our user engagement and stickiness, coupled with the right off the peak season.
Falling off a few of the largest will continue to grow.
Yeah.
Thank you Tom.
Speaker 1: Your next question comes from Eddie Wong with Morgan Stanley . Please go ahead.
The next question comes from Eddie Leung with Morgan Stanley. Please go ahead.
Speaker 7: Thank you, Mr. Zhang, Mr. Simon, and Mr. Mao for accepting my questions. First of all, congratulations to the company for exceeding its expected 3G performance. My question is about...
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Speaker 7: As you can see, in the third quarter, the number of shipments reached 2.13 million, and the share price increased by 15%, and the return rate increased by 6.7%. I would like to ask what is the main reason behind this?
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Speaker 7: And what is the user structure of our provider?
It goes to somebody on the <unk> to go up a whole host of Europe, what it done.
Speaker 7: Finally, what is the expected level of increase in the number of shipments and deliveries in the fourth quarter?
Got shut down the shipping now.
Speaker 7: Thank you, management, for taking my question. My question is regarding the SHERPA MAU. In the third quarter, the average SHERPA MAU reached 2.13 million, which implies a 15% UOV growth and 6.7% quarter-to-quarter growth.
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My question is just regarding the Oh Sherpa M a U.
Instead of closer to the average ship I mean, you reached 2.13 million, which implies about 15% year over year growth and <unk>.
Six 7% quarter on quarter growth.
Speaker 7: What were the primary reasons behind this growth and how can you describe the user structure? What's the expected growth rate for the fourth quarter? Thank you.
What toward the primary reason behind this growth and how can you describe the use of structure.
The expected growth rates for the fourth quarter. Thank you.
Speaker 4: Thank you, Abby. In the first quarter, we witnessed continued rapid growth in the average shipper monthly active user base. And this growth can be...
Thank you Eddie.
In the first quarter we.
Witnessed.
<unk> continued rapid growth in the average shipper a monthly active user base and this growth can be.
Speaker 4: attributed to two primary factors. First, our effective user acquisition strategy played a very important role. Through a combination of online promotions and offline field, on-the-ground field marketing, we have expanded the platform's brand exposure and recognition, effectively attracting more users to join the platform.
Attributes attributed to two primary factors.
First our effective user acquisition strategy played a very important role through a combination of online promotions and offline.
On the go on field marketing, we have expanded the platform's brand exposure and recognition effectively attracting more users to join the platform.
Speaker 4: For online we have primarily employed methods such as app store promotions, sponsored content in information feeds, and search engine marketing to reach out to potential users.
All lines, we have primarily employed methods such as App store promotions small shop sponsored content in inflammation seats and search engine marketing to reach out to potential users.
Speaker 4: Offline our field marketing team teams has and the vehicle sticker Have played a substantial role in acquiring a new user specially direct shipping
Flying our field marketing team teams has.
And the vehicle sticker at.
I've played a substantial role in.
Our new users, especially direct shippers.
Secondly, we have continued.
Speaker 4: Secondly, we have continually refined our product features and services, including the introduction of simplified shipping processes and optimization in our less-than-truckload service.
<unk> continually refined our product features and services, including the introduction of a simplified shipping processes.
And optimization in our less than truckload services.
Speaker 4: These measures have significantly improved the conversation rate of new users and increased engagement and loyalty of existing users.
These measures have significantly improved the conversation rate of new users and increase engagement and loyalty of existing users.
Speaker 4: making them more inclined to use our platform for.
They're more inclined to use our platform for shipping.
Speaker 4: From a user structure perspective, there has been a sustained increase in the proportion of direct shippers.
From a user's structure perspective, there has been a sustained increase in the proportion of direct shippers.
Speaker 4: The average shipper, miles of direct shippers, has experienced nearly 17% year-over-year growth.
Average ship route mile of their mouths direct shippers has experience nearly 17% year over year growth.
As we look ahead to the fourth quarter, we will continue to closely monitor changes in user activities and these are structural changes.
Speaker 4: As we look ahead to the fourth quarter, we'll continue to closely monitor changes in user activities and user structural changes.
Speaker 4: We will strive to execute proactive user acquisition strategies and explore new business and product models to attract more high-quality direct shippers.
We will strive to execute proactive user acquisition strategies and explore new business and product models to attract more high quality direct shippers.
Thank you so much.
Speaker 1: The next question comes from Charlie Chen with China Renaissance. Please go ahead.
The next question comes from Charlie Chen with China Renaissance. Please go ahead.
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Speaker 3: Thank you, Mr. Zhang. Thank you, Simon and Maomao, for answering my question. I have a question about cargo economy business. According to the third quarter, the income of cargo economy business has increased by 18.4%. It is also a very strong increase. We want to understand the current industry competition pattern of cargo economy business and the position of Manbang in this industry. Let me translate it first.
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Speaker 8: In the third quarter, revenue from the freight brokerage service grew by 18.4% year-on-year, maintaining a very strong growth record. How should we understand the current competitive landscape of this freight brokerage industry and the Food Truck Alliance position in this field? Thank you.
In the third quarter revenue from the freight brokerage services grew by 18, 4% year on year, maintaining a very strong record how should we understand the current competitive landscape.
Friday's brokerage industry and if we try to alliance positioned into field. Thank you.
Speaker 4: Thank you, Charlie. In recent years, the freight industry has faced a series of challenges, particularly the impact of the pandemic. This led to the closure of several small freight brokerage platforms due to insufficient cash flow.
Thank you Charlie and reason used to the freight industry has faced a series of challenges.
Particularly the impact of the pandemic.
This led to the closure of several small freight brokerage platforms due to insufficient cash flow.
Speaker 4: resulting in a gradual reduction of players in the market.
Resulting in a gradual reduction.
Layers in the market.
Speaker 4: The major players in the industry are now predominantly medium to large size national freight platforms.
The major players in the industries that are now predominantly medium to large sized nation national free platforms. However, these are large platforms often provides relative be singular product offering, which users who are highly price sensitive and <unk> exited low brand loyalty.
Speaker 4: However, these large platforms often provide relatively singular product offering, which users who are highly price sensitive and exhibit a low brand loyalty.
Speaker 4: Furthermore, such platforms typically have relatively weak freight matching capabilities and suffer from a lack of available orders, making it difficult to attract a large number of truckers.
Furthermore, such platforms typically have relatively weak freight matching capabilities and suffer from a lack of available orders, making it difficult to attract a large number of truckers.
Speaker 4: As a result, they primarily rely on invoicing or other services.
As a result the pri.
They they primarily rely on invoicing.
Other services to generate profit.
Speaker 4: In contrast, FTA leverages its leading position in the industry and a nationwide network to establish itself as a prominent brand and enhance freight matching efficiency.
In contrast, our F T leverages, its leading position in the industry and a nationwide network to establish itself as a prominent brand and holds freight matching efficiency and lower user acquisition cost and maintain relatively high gross margin compared to competitors.
Speaker 4: and lower user acquisition cost and maintain relatively high gross margin compared to competitors.
Speaker 4: Currently in our freight brokerage service, nearly 50% of orders are completed through platform-assisted freight matching.
Currently in our freight brokerage services nearly 50% of orders are completed through platform assisted freight matching.
Speaker 4: Meaning that shippers who use our freight brokerage service has genuine needs to get a match for stranger truckers.
Meaning that shippers, who use our freight brokerage service has generally needs to get them matched with stringent truckers.
Speaker 4: Through cross-valuing services such as closed-loop commission and value-added services, FTA has created a diverse and comprehensive product mix.
Through cross selling services, such as close Loop Commission.
And value added services FTA has created a diverse and comprehensive product mix and monetization model.
Speaker 4: This comprehensive advantage has allowed FTA to stand out in a highly competitive market and maintain higher service fees.
This comprehensive advantage has allowed F. T H two standout in a highly competitive market and maintain higher service fees.
Solid it find its market position.
Speaker 4: The company's capabilities and business model enables provision of high-quality freight services to meet user demands and generate sustainable profits.
The company's capabilities and business model enables the provision of high quality free services to meet user demand and generate sustained sustainable profit.
You should have it.
Yeah.
Speaker 1: The next question comes from Brian Gong with Citi. Please go ahead.
Our next question comes from Brian Gong with Citi. Please go ahead.
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Speaker 3: Good evening, Mr. Jiang, Mr. Simon, and Mr. Mao. First of all, congratulations on a very good start of the night. I have a quick question about our membership fee. The membership fee for the third quarter has increased by 5.6%. It seems to be slightly slower than the income increase of the other sections. Can you further explain the growth of the membership fee for this quarter and what kind of operating strategies and measures will be taken in the future to promote the growth of the membership fee income?
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Speaker 9: I will translate myself in the third quarter, membership fee revenue increased by 5.6% year-on-year, which was lower than the other segments. Could management please provide an update on the growth of Shipper members in the third quarter? And what operational strategies and measures will be taken in the future to drive the growth of membership fee revenue? Thank you.
I will translate myself, so quarter membership fee revenue increased by 5.6 for some year on year, which was snores dozens of other segments.
Can management provide an update on the gross off shipper members some corner.
And what operational strategies and the measures taken in the future to drop the world membership he brought with him.
<unk>.
Thank you Brian.
Speaker 4: Thank you, Brian . Since 2018, we have been monetizing...
Since 2018, we had a we have been monetizing monetizing.
Speaker 4: The freight yellow page service through the introduction of membership system
The freight yellow page services through the introduction of membership system.
Speaker 4: Members enjoy more privileges than non-paying users, including the ability to post orders.
Members enjoy more privileges than non paying users, including the ability to post to others.
Currently there are two membership tiers. The first tier members are paying an annual fee of RMB 688, allowing them to post up to 100, others per year, primarily serving mid to low frequency direct shippers. The second tier membership is designed for high frequency.
Speaker 9: Currently, there are two membership tiers, the first-tier members paying an annual fee of RMB 688, allowing them to post up to 100 orders per year, primarily serving mid- to low-frequency direct shippers.
Speaker 9: The second-tier membership is designed for high-frequency shippers who pay an annual fee of RMB 1,688, enabling them to post up to 1,688 orders per year.
Bruce will pay an annual fee of RMB 168, enabling them to post up to one with 1688 orders per year.
Speaker 9: The platform occasionally introduces membership benefits to ensure that members receive additional other posting rights.
The platform occasionally introduces membership benefits to ensure that members receive additional order posting weights.
Speaker 9: From an operational synergy perspective for high-frequency shippers, FDA has achieved a high level of user penetration compared to the traditional model where shippers had to pay at least 10,000 RMB for logistic park rental fee. FDA has gradually...
From an operational synergy perspective for high frequency shippers F. T. H has achieved a high level of user penetration compared to the traditional models for shippers had to pay at least 10000 RMB four logistic park.
Rental fee.
F D. A has gradually replace logistics parks.
Speaker 9: And the cost per shipment is reduced to less than RMB $1 per order. Membership fees are significantly cheaper compared to traditional logistic part booth rental fees.
The cost per shipment has reduced to less than one RMB.
One dollar per for all their.
Membership fees are significantly cheaper compared to traditional logistic park, a booth rental fees and for this user segment.
Speaker 4: And for this user segment, FTA mainly monetizes through cross-selling value-added services and commissions, increasing the revenues.
S T eight mainly monetize it through cross selling value added services and commission income.
Leasing revenue scale for other business.
For mid to low frequency direct shippers, new shippers, a new shipper users entering the platform are mostly direct shippers.
Speaker 9: For mid to low frequency direct shippers new shipper new shipper users entering the platform are mostly direct shippers
Speaker 9: Hence, the number of 688 members has been steadily growing over the past few quarters. And looking at the market size of millions of small and medium-sized business owners in China, there's still considerable growth potential.
Hence the number of 688 members has been steadily growing over the past few quarters I'm looking at the market size of millions of small and medium sized business owners in China, there's still considerable growth potential.
Speaker 9: However, we observed that the number of orders corresponding to 688 members exceed the usage needs of some low-frequency users, and based on this, our operation team are actively devising product strategies in an attempt to develop packages that are more suitable for low-frequency shipping.
However, we observed that the number of others are corresponding to 68 eight members exceed to usage.
Research needs of some low frequency users and based on this our operation team proactively devising product strategies and attempt to develop packages that are more suitable for low frequencies shippers.
Additionally, why while the our pool for direct ship remembers appears relatively low.
Speaker 9: Additionally, while the ARPU for direct shipper members appears relatively low, their freight rates are higher and they exhibit better fulfillment rates, offering greater monetization potential through commissions and cross-selling value-added.
They're freak rates are higher and they exhibit better fulfillment rates offering greater monetization potential through commissions and cross selling value added services.
Speaker 4: In the long term, direct shippers are not only the main driving force for future membership fee growth, but also present opportunities for growth in other business lines.
The long term direct shippers are not only the main driving force for future membership fee growth.
But also present opportunities for growth in other business lines.
Thank you.
Speaker 1: The next question comes from Ti-Lu Lee with DICC. Please go ahead.
The next question comes from Kim Lee with D. M D C.
Go ahead.
Yeah.
Speaker 10: Yes, thank you for accepting my question, President Simon and President Mao. I still have a question. We have observed that
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Speaker 10: In the third quarter, the company's draw order penetration rate was about 58%, and 59% in the previous quarter, which is a slight decline. I would like to ask what the main reason is here. Let me simply translate it for you. Thanks for taking my question. We noticed that the penetration rate of the commission model in the third quarter was around 58%.
So we'll enjoy that.
Or something like that no one today, yes.
Taking my question my we noticed that the penetration rate of the commission model in the quarter on what's around the 58%.
Slightly lower than 15 odd percent in the previous quarter. So what are the main reason why me.
Thanks.
Speaker 9: Thank you, that's a good question. In the past quarter, revenues from the commission model reached around RMB 600 million, increasing by over 54% year-over-year.
Thank you that's a good question.
Past quarter revenue our revenues from commission model reached around RMB 600 million.
Increasing by over 54% year over year.
Speaker 9: This strong growth was primarily due to the overall increase in order volume and continued improvement in commission rate.
This.
This strong growth was primarily due to the overall increase in order volume and continued improvement in commission rates.
Speaker 9: Operationally, we have been primarily focused on scaling the platform as a whole with no additional city extension or significant adjustment to our commission strategy.
Operationally, we have been primarily focused on scaling the platform as a whole with no additional city extension or significant adjustment to our submission strategy.
Speaker 9: Nevertheless, we have conducted stress tests with higher commission rates in certain cities to prepare for potential future increase in commission rates and penetration rates. The
Nevertheless, we have conducted stress tests with higher commission rates in certain cities to prepare for potential future increase in commission rates and penetration rates.
The penetration rate of.
Speaker 9: of a particular transaction type is defined as the number of commissioned orders for the transaction divided by the number of total order volumes.
I'll say, a particular transaction type is defined as the number of commission orders for their transaction divide it by the number of total all their volatile.
Speaker 9: At the time of our IPO back in 2021, our short-haul transaction commission business was very small. Hence, it was classified under the value-added services line of our revenue.
At the time of our IPO back in 2021, our short haul transaction Commission business was very small hence it was classified.
Under the value added services line of revenue.
The transaction Commission revenue line does not include shortfall contribution.
Speaker 9: The transaction commission revenue line does not include short-haul contributions.
So when calculating penetration rate the numerator exclude fulfilled shortfall authors Wow. That's the denominator includes both long haul and short haul others.
Speaker 9: When calculating penetration rate, the numerator excludes fulfilled short-haul orders while the denominator includes both long-haul and short-haul orders.
Speaker 9: In the past quarter, the penetration rate was approximately 58 percent, showing a slight decrease compared to the previous quarter, primarily due to the fast increase of short-haul procured orders under our Shengsheng brand. The commission penetration rate for long-haul orders
In the past quarter, the penetration rate was approximately 58% showing a slight decrease compared to the previous quarter, primarily due to the fast increase of short haul pursued others under hours, our social brand.
The commission penetration rate for long haul orders.
Remained stable quarter over quarter.
Speaker 9: Looking ahead, our focus will remain on increasing the penetration rate of our commissioned model and adjusting commission rates. Both are critical metrics for our core business.
Looking ahead, our focus will remain on increasing the penetration rate of or a commission model and adjusting commission rates.
Both are critical metrics for our core business.
Speaker 9: We will achieve this through operational optimization and market extension to ensure sustained rapid growth.
We achieved this through operational optimization and market expansion to ensure sustained rapid rapid growth.
Yeah.
Okay.
Yeah.
Okay.
Speaker 1: This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks.
This concludes our question and answer session I would like to turn the conference back over to management for any closing remarks.
Speaker 2: Thank you once again for joining us today. If you have any further questions, please feel free to contact us at 4Talk Alliance or TPG Investor Relations. Our contact information for AI in both China and the U.S. can be found in today's press release. Have a good day.
Thank you once again for joining us today, if you have any further questions. Please feel free to contact us at Ford Yoga line or TPG Investor Relations, our contact information for both China and the U S can be found in today's press release.
Good day.
The conference has now concluded.
Speaker 1: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
You for attending today's presentation you may now disconnect.
Speaker 11: © BF-WATCH TV 2021
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