Q1 2024 Boqii Holding Ltd Earnings Call
Speaker Change: [music].
Pardon me, ladies and gentlemen, thank you for standing by for boat Chiefs Conference call.
The conference call will begin in approximately 25 minutes. The conference call is rescheduled for 830.
A M eastern time.
He may continue to hold or dial back. Thank you for your patience.
[music].
[music].
[music].
[music].
[music].
Good day, ladies and gentlemen.
Thank you for standing by and welcome the Bocce fiscal year 2024 first half 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.
Now I would turn the call over to al but she's head of Investor Relations.
al: Okay. Thank you operator, and thank you all for weight loss.
al: It's got a conference call and good morning, everyone welcome to 14th fiscal year, a country to country for first half earnings conference call.
al: Okay.
al: At least that Tom co CEO and CFO as well as food care, along with that I'll walk and I shall be true I think that for sure.
Speaker Change: I hope I said that Oh.
Speaker Change: Lately.
Speaker Change: Oh, My God, what's the call somebody and they get to go hopefully close on some definitely you know you're on the ancillary.
Speaker Change: Wonderful.
Speaker Change: Thanks, Doug.
Doug: That's helpful.
Doug: Yeah.
We released the results earlier today. The results is available on the absolute best that a replay of the call will be available on our site later today.
Doug: Do you have to go on golf. He does he take Walmart has it shall hold you'll hopefully you don't really find a way Shanghai grew close to I don't want that.
Doug: Before we continue please note that today's discussion will contain forward looking statements made under the Safe Harbor provisions. After your last probably Securities Litigation Reform Act of 1995.
Doug: Forward looking statements involve inherent risks and uncertainties.
Doug: The company's actual results may be materially different from the expectations of clients today.
Doug: Further information regarding this and other risks and all circumstances unfolded in the Companys public filings with the U S E T.
Doug: The company does not assume any obligation to update any forward looking statements, except as required under applicable law.
Doug: Oh definitely it has that potential.
Doug: John ballpark unchanged, Joanna Naples sedans, and cancel some guy goes out and I think on top of that so its sort of tangential shuttle and doesn't pencil should equally on a phone shall be fitting.
Doug: Oh.
Doug: So I'm kind of enthusiasm got out of it he or she is in a tight you want to see how far south of opportunity isn't a team.
Doug: It seems that you go through sound medical attention valuation when she called out who haven't gone downtown.
So basically all got me all choke off the jumbo Dino will come see condensing Helene.
Doug: 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.
Doug: Although Asia of GAAP to non-GAAP measures can be found in our earnings press release.
Speaker Change: Okay. That's helpful.
Speaker Change: Hopefully you can see on the most is how the Dol rule knockouts knockout.
Speaker Change: I've got two quick.
Speaker Change: So even thought evenly gene knockout.
Speaker Change: No Paul Mcafee is a joke, we keep asking all got Delta again, that's held up okay.
Also please be reminded that unless otherwise stated all figures mentioned during the conference call I and Chinese RMB.
Speaker Change: So actually I think it was funny, yeah, Holly against Dallas, where we're supposed to do.
Speaker Change: I don't view it that way.
Speaker Change: With that let me now turn the call over to our co CEO S. Yaffle muesli, Satcom and down one bashes in Dorking Yahoo.
S. Yaffle: Well, Lisa oversee only shop.
Speaker Change: [noise]. Thank you al and many thanks to everyone for joining our call today.
Speaker Change: I think beginning of physically interest on Chinese for spine to challenge yourself marketing market uncertainty, we made great strides in our revenue mix enhancement and cost control with high margin private labels shrinking is done and the indirect costs.
Speaker Change: You'll see a normal jump in amounts and a percentage to revenue laying the foundation for a solid first half.
Speaker Change: I can tell you kind of get going towards a July, but then die and Jackie Kennedy of Holly Hunt in us opinion of how she can go I mean, he accomplishing things seem to touch on what you guys showed a two can you what do you kind of quantify Manhattan.
And I think that slowing down it seems that already done still from the hydro in Central Asia.
Speaker Change: And just a manhunt cheat sheet household, which empties and through the cycle just to handle a schulman opinion, the one being sent back out of control.
Speaker Change: I don't the manager team, we totally believe that when done right direction and we maintain confidence in the development of China. Our industry, we will continue to work at it.
Speaker Change: It did agency and the passion. They today and then we'll keep a keen eye on market dynamics and opportunities. So that we can generate sustainable returns to our shareholders.
Speaker Change: I talked to your time charter out to further update you on the operational and business development in first half truth on the 24. So he wants to when he told me thinking bolstered your entire team for their focus on my team.
Speaker Change: Clean up item box you can see without anytime do you don't you shouldn't be team each in Guangzhou China.
Speaker Change: Hudson that Dutch entity, if we don't count all countries should all play ball you thought all that she didn't Delphi Danielle we thought that you saw in Saudi Hassan opinion shown by any means.
Speaker Change: Okay.
Speaker Change: Thank you Lisa.
Speaker Change: In fact, they find a certain case no macro economy, China, passing economy continues to some I'll say chance potential. According to the latest report a penetration rate of household showing passion in China is expected to continue its fighting weeds.
Speaker Change: Reaching 22% in 2023 that number is still way behind that in the United States and Europe.
Speaker Change: <unk> substantial room for fashion.
Speaker Change: By 2025 is a predicted that China have mark Haynesville heaps R&D.
Speaker Change: Hung around 11 4 billion.
Speaker Change: Presenting al Qaeda or all 19.8% from 2021 to 2975.
Speaker Change:
Speaker Change: It's a challenging one but one thing to call out there.
One was Chicago.
Speaker Change: Formation, Etame, reaching the highest fujitsu truthfully, what else on fashion and home.
Speaker Change: Uh-huh RDR Fang she jumped at all that and Gosh I hope you all make with that.
Speaker Change: We should have adequate.
Speaker Change: The army or when you talk about when we should have a win win that you jumped at all by telling you that you can see I mean Pete.
Speaker Change: Arnie I Union Army.
And Tom it sounds that all future Julien.
Speaker Change: [noise] all day. This week, we are sure that China market is going to eventually we bombed.
During the first half what's your focus is on strengthening its market position enhancing his friend profile improving its user thickness. We find this protect offerings and streamlining business operations in preparation for the Bachelor waves in the future.
Are you trying to get all of them in school to St. James Johnson go more towards the top Jones Act will join our Italian last half.
Speaker Change: So the time, Inc.
Speaker Change: What should that somebody until you're trying to attach how should how do you see some comparison yourself. So you probably don't want to I think you'll walk hanging from 90 deal between two and four series lithography.
Speaker Change: In particular, our customer launch it won't be the major growth.
Speaker Change: Gross driver for the girl has lifted our company. Meanwhile, I'll wait till the work satisfactory results pharma private label are leveraging our extensive user data and excellent. They talk capability, we were able to optimize our private Atlanta projects offerings to petrochina.
Speaker Change: Pet parents needs, while reducing our carrying costs for nonperforming of keywords.
Speaker Change: Oh, I'm really you won't put longtime to Joshua it's essentially that home fashions, yeah. They actually often got Tony if we'd have seemingly a woman that's yoki Apache niche.
Oh, what's the fall football you won't go too much into the bag.
Speaker Change: Fortunately Homotaxis Tonight, you'll hover, let's see what came at a time from something that you found me I'm going to champion choosing amongst all calling from the fishing Vishal hopefully you don't do a lot of Congress. She's also attempting to come up with that.
Speaker Change: Although although the robe suffered are talking overall G M. B M V or private label actually enjoying an increase of 2.1.
The fab to RMB 200, I'll call 0.9, knowing its revenue contribution to overall revenue also rose from 17.8, perhaps too much on T 6.4%.
Speaker Change: Leading to a staple for from us.
Speaker Change: On gross margins and post smoking on margins.
Speaker Change: That's gross Martin standing firm at 20% and postpone.
Speaker Change: Two months marvin's enjoying an optimistic oh.
Take off a 170 basis points to 11 points you perhaps.
Speaker Change: We'll do something once you Pandora junkie generally also ties out silicon patent Sandwich Nager Hansen, John Locke, I'm trying to eat that arent even beyond <unk>.
Speaker Change: Yeah, So talking Patrick Chongqing, Xi'an, you're talking about hundreds that you didn't back on for Josh.
Speaker Change: I don't want to time Junkie Maldini, Richard that you aren't going to Vicky.
Speaker Change: Hold them all degree of Cingal and <unk>.
Speaker Change:
Speaker Change: Yeah.
Speaker Change: As we grow as a brand along with our comprehensive content costs and customized product selection on offer there was also a rising yoga thickness, which was reflected in the historic lows they see them by 46% year over here to the army.
Speaker Change: RMB 2.8.
Speaker Change: Customer purchase frequency also increased from one point 32 last year to $1 30 for this year.
With growth seen across both new and existing customers.
P. Jurgensen jumbo can match them into full mode. Liana, that's listening narrow who are thinking of hunting and shooting sports you. They don't want it you don't shouldn't I won't know for quite sometimes that Polish it seems he told me he sat down that route, especially O J B R. I S.
Speaker Change: Copel to go and actually is functioning and once you know you can't touch it and that'll even faster.
Speaker Change: Cohorts and kind of a cool taco Mac shouldn't be seen what's been done.
Speaker Change: Overall, we remain confident in our you only.
Speaker Change: Actually in China, expanding past market, we have observed encouraging.
Speaker Change: Including a significant.
Speaker Change: A rise in the number of pets.
Speaker Change: Increasing a lot Laura you have e-commerce, which bodes well for the future off at the half industry aggregator.
Speaker Change: We will continue on the journey to establish a well rounded ecosystem that delivers value to both pet parents shop brand partners.
Speaker Change: We are they are they asking about building upon our weighting in position hopefully, creating a more resilience all impact for industrial presence in the future.
Speaker Change: And Sharon Young woman, that's when we'll put on pull data from one of your colleagues and what's the go to choice accounting way Louie.
Speaker Change: I'm Gonna do eat out hopefully I'll Central's, Linda and Sean Healey.
Speaker Change: Just to go downtown.
Speaker Change: We won't Miss a wage.
Speaker Change: Yes.
And I'm going to talk to you when we had Johnson shouldn't really taught out who had kind of forgotten just went out equally we uncle phone call comparable antifungal action without Wuhan Changsha.
Do you see that Falcon, Julian Segal <unk>, what's the payback.
Speaker Change: I will now turn the call over two hours and I shall V. P loyal who will share more details on our national oil company decided it was I'm not sure you didn't tell me on the telephone and I don't know if a woman at Suntrust.
Speaker Change: [laughter]. Thank you, Eric England, following either Aimco share more our.
Speaker Change: Financial performance for the physical hospital.
Speaker Change: On behalf of our fiscal year.
Speaker Change: Well, we continue to.
Speaker Change: Actually execute our strategy adjustment.
Speaker Change: This upturn migration just to answer John.
Duncan dog Unfortunately.
Speaker Change: China Telecom.
Speaker Change: One element tissue.
Speaker Change: Okay.
Speaker Change: Our revenue for the first half fiscal year <unk> was RMB 389, 4 million down by 34% year on year as a result.
Speaker Change: Working.
Speaker Change: Sentiment and consumption downgrades in China overall gross profit margin only decreased by 100 basis points to 20% gross profit.
Speaker Change: <unk> I am the 77 nine points.
Speaker Change: $77 9 million.
Sure.
Speaker Change: South Asia, John Eudy, and John will make some money so routinely.
Speaker Change: Okay.
Speaker Change: Not all of them be San Diego E N.
Speaker Change: Thank you Maya can be generational.
Maya: Yes, Matt I'll, let Ivan Joshua.
Maya: Sometimes danielle.
Speaker Change: Uh huh.
Speaker Change: Okay tobacco savant.
Speaker Change: We also made notable efforts.
Speaker Change: Also control.
Speaker Change: Yeah.
Speaker Change: Improving the operational efficiency of our logistics services fulfillment expenses as a percentage of revenue for the first of half year decrease of 2.9% come down too.
Speaker Change: 6% over last year, so feel my expenses decreased 49.4% to RMB.
$34 5 million.
Speaker Change: Lasers are foundational and improving post fulfillment margin increasing from nine 5% last year or two.
Pointing to 2%.
Speaker Change: Well, it's actually I'm cornerstone yesterday horizontal so it's a woman.
Speaker Change: Well, Dan Houston window food, that's already familiar you don't.
So you want to cancel Rockies wenchang understood.
Speaker Change: But it showed up in Japan Angel, maybe that's it.
Sure Tom Fortunately deal have happened yesterday.
Speaker Change: Not all of them be essentially.
Right.
So the woman the downhole monitoring.
Speaker Change: Thank you Jody Pinzon syrup, and should have that congestion.
Speaker Change: Sales and marketing expenses decreased.
Speaker Change: 28, 6% to RMB 45.4 million, mainly geared towards the carbon efficiency of customer acquisition from more cost efficient channel as well.
Speaker Change: That's all I can tell family junior and let's say somebody.
Speaker Change: We don't do that.
Speaker Change: And I'll, let Andy So Dan will now go.
Oh, yeah, well know.
Speaker Change: All right.
Speaker Change: Ken Chenault Cardio you also on Houston.
Speaker Change: General and administrative expenses RMB <unk>, two points 2 million compared to RMB <unk> 1 million for the first of half of your fiscal <unk>.
Speaker Change: <unk> the increase was mainly due to the increase in share based compensation expenses.
Speaker Change: Sure Sanjay.
Sanjay: Yeah sure.
Sanjay: Pennsylvania.
Sanjay: Oh sure.
Sanjay: Josh It's John.
Sanjay: Yeah.
Sanjay: Yes, Tim Nevertheless, RMB 77, 7 million in their first half of fiscal year 'twenty 'twenty four.
Speaker Change: And then our non-GAAP net loss.
Speaker Change: Yeah.
Speaker Change: 34.2 million, we did it at the long end.
Speaker Change: Type transactions in the first half of your 2024 and as a related expenses <unk> 7 million is recorded net loss also ended the first half here or there.
Speaker Change: First time, we applied Oh, we have seen.
Speaker Change: So, let's see Oh expected credit loss model.
Speaker Change:
Speaker Change: Account receivable and other receivables.
Speaker Change: And then the expected credit loss or <unk> 3 million net.
Speaker Change: Net loss.
Speaker Change: Clothing apparel to Oh.
Speaker Change: And then lastly, if RMB 27.7 million, representing an improvement of 6% compared to the same period last year and non-GAAP net loss is <unk>.
74.2.
Speaker Change: 2 million.
Speaker Change: Representing.
Improvement Oh excuse me.
Speaker Change: 15%, we show our capacity or breakeven in the short term future.
Speaker Change: I wish all of them.
Speaker Change: Please go ahead.
Speaker Change: And then Steve I was just wondering.
non-GAAP.
Steve: Oh, sorry.
Steve: So my opinion, so sort of ft lineup types.
Speaker Change: Hi, Mike.
Mike: You always somewhere in the ceiling.
Mike: Thanks, Chris.
Mike: Meanwhile, women's and also financial.
Yes, Steve.
Mike: Credit trends.
Mike: Okay.
Mike: Sure.
Mike: So I'll pass on that question was.
Mike: I'm not sure Joe with me all the sound that one that you see.
Sure so associated with that.
Mike: [noise] reward household shortly I'm glad you switching that yourself.
Mike: Sure.
Speaker Change: You bet.
Speaker Change: Sure.
<unk> non-GAAP at some place.
Speaker Change: So David I'm, just so it's okay.
David: And then go break even though.
David: Our financial position at Cowen.
David: Saturday September 20th anniversary Oh, yeah.
So as that ratio stood at.
David: 39, 5%, our total cash and cash equivalents were.
David: <unk> 6.8 million.
Speaker Change: Oh IMD.
Speaker Change: 74.8 million, mainly due to a decrease of RMB 17 1 million.
Speaker Change: Borrowing as compared to 30, <unk> March 2023, with no major capex sourcing.
Speaker Change: Strong Paddy line backup backup.
Speaker Change: Cash sufficient to support our operation and the pursuit of new initiatives. Besides September.
Speaker Change: September turnkey tend to three we entered into financing agreements with third parties, which we also provide us additional capital to what you saw.
Speaker Change: Our new business opportunities.
Speaker Change: Honeywell metallics in lung cancer.
Well I mean, that's the announcement out of your way back into.
Speaker Change: Essentially the Chilean peso and yen transit thoughtful.
Speaker Change: With M D.
Speaker Change: San Diego and in that war <expletive> I cannot do that I'm asking you why that maybe.
Speaker Change:
Speaker Change: She can I pass away.
Speaker Change: Sure well mental don't change.
Speaker Change: I'll find a way to answer that in your home.
Speaker Change: So do you Wanna mention Atlanta and Charlotte.
Speaker Change: And B, if you're talking about what.
Speaker Change: I will now mail, it's another sort of answer to you just sit out some lunch items do you open them.
Speaker Change: Oh, Yeah, Transocean wants out something women.
Speaker Change: So go ahead, Dean Manson chairwoman Dianne.
Speaker Change: And Joe it seemed to have done it.
Speaker Change: So that's I think.
Speaker Change: So in my opinion.
Speaker Change: It depends on that towards the Joliet terminal.
Speaker Change: Got it I appreciate your thoughts on why women kill com team, but otherwise pleasing.
Speaker Change: That's how we're talking about where we're at.
Speaker Change: Tore down so how can it be.
Speaker Change: Moving forward, we will continue to strengthen our reach and controls throughout the value chain.
Speaker Change: Yeah.
Gross investments caliber.
Collaborations and strategic.
Speaker Change: The initiative.
Speaker Change: A reason for our closed loop.
Speaker Change: Communicate we believe this approach will allow us to become not only the go to place for pet parents, but also as the go.
Speaker Change: Go to partner for brands and manufacturers distributors and that's about it first in China or central beaten China. Okay.
Speaker Change: Along with other women tissue Johnstown.
Speaker Change: Tom.
Speaker Change: So Linda.
Speaker Change: Oh.
Speaker Change: That's all teenagers.
Speaker Change: Sean It's just unfortunate the franchise.
Speaker Change: So once you put in your share count.
Speaker Change: Somewhat short Jameson type increase.
Speaker Change: Some questions on their fourth ISI.
Speaker Change: Question is on that same passion, Jonathan Sasha answer chunky Gotcha, that's a downside.
Speaker Change: Okay.
Speaker Change: He will wrap up my summary net.
Speaker Change: No.
Speaker Change: To the Q&A session, operator, Jason and I will maintain Rudolph went up and your European Tour Sharon.
Yeah.
Yeah.
Speaker Change: And we will now begin the question and answer session.
Speaker Change: Ask a question you May press Star then one on your Touchtone phone.
Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: Withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble the roster.
Yeah.
Speaker Change: [noise]. Our first question today will come from Zoe Zhao of C. I C. C. Please go ahead.
Zoe Zhao: So let me now that you have all of them keep warm.
Zoe Zhao: Mark.
Mark: Oh, creating cat.
Mark: Oh, well, along Hawaii, Washington, and Boston.
Mark: Oh no no no.
Mark: Sure.
Speaker Change: Well this is Dan.
Speaker Change: So they look at the balance sheet.
Dan Houston: He will now give you 10 Almac also like as I'm sure. It's just you're not sure yet.
Dan Houston: Yeah.
Dan Houston: Electrification.
Speaker Change: Sure sure sure.
As I said, we're gonna children, who suffer from Guangdong no no that answers it.
Speaker Change: Good luck guys.
Uh huh.
Speaker Change: Well, Joe I think you guys have.
Speaker Change: She was asking me about that I think I should say.
Speaker Change: Yeah.
Speaker Change: So again no one P&L.
Speaker Change: So again.
Speaker Change: And with that Don Fisher Tony.
Don Fisher: Yeah, Duane I spoke I wish without one.
Don Fisher: I mean, you guys Shlomi Cohen.
Don Fisher: Yeah.
Don Fisher: Okay.
Don Fisher: Hum.
Don Fisher: Sure Okay.
Don Fisher: So amount of tenure from what's happening it sounds good.
Don Fisher: Tom.
Speaker Change: Wait I don't have.
Speaker Change: And then.
Speaker Change: Hi, This is Rachel woman, Jake Raj I mean, Jamie.
Speaker Change: Do you have or youll have that lunch on the E T.
Speaker Change: The team did a playful shield the showroom away about what about <unk>.
Speaker Change: As described in our yards. The decrease is primarily geared towards the optimization of our products product mix related to our opinion strategy under the worsening consumer.
Speaker Change: Consumer sentiment and consumption downgrade in China.
In the future, we expect our revenue to stabilize as we finish.
Speaker Change: Finishes that Optimizes optimization, all of our product program is on the Arizona economy.
Speaker Change: <unk> English.
Got it in the future.
Speaker Change: Brian.
Sure.
Speaker Change: Yeah, Oh, Yeah go ahead.
Hmm.
Speaker Change: Oh My gosh.
Speaker Change: Yeah.
Speaker Change: Our breakeven.
Speaker Change: A week after week.
Speaker Change: Uh Huh, maybe I'm, making the breakeven.
Speaker Change: Shut in in the future.
Speaker Change: Thank you.
Speaker Change: Sure.
Speaker Change: Hey, Mark.
Speaker Change: Smiling.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: [noise]. Our next question today will come from Lisa Law of Jefferies. Please go ahead.
Lisa Law: Hi management. Thanks for taking my questions. This is Lisa Ling from Jefferies. So currently I have two questions for you. The first one I want to bother has the company as it relates to recurrent being resolved.
Lisa Ling: This is the first one and secondly could we get more some color from you about the expenses such as SMB G&A and R&D.
Lisa Ling: And the.
Lisa Ling: Reductions whether to expect in the future so well when he said when he issues well she's a cultural got tissue Fujian chip, where you can watch it just to deal with.
Lisa Ling: He got once you walk out to Glen E. Sun's usually shackled some chance you've made it sounds like Q1, if you would I should probably with GP County.
Speaker Change: Thanks, so much for taking my question.
Speaker Change: Okay. Thank you. Thank you for your questions and I will answer the first question.
Speaker Change: The company has already resolved the Dallas team asking October does here and we successfully listing transfer from Oh I've seen two O I's you America, Oh, where the company needs is compliance requirements and currently have no. The the last thing with risk.
Speaker Change: So as you know once you.
Speaker Change: Oh Wow without fuel should Eagle lunch, you'll hear golf film chances just asking US do you have an actual hoyden Shlomo if I did my pleasure to host you actually won't meet interim Donuts home, Oh, I see drum that all our lives America.
Speaker Change: Not that lives in America Nicholson with cash at Fort Hood.
Speaker Change: All told all our channel 10 fashion, they all tissue function.
Speaker Change: They are the ones you want Mitchell.
Speaker Change: I don't have to die.
Speaker Change: Uh huh.
Speaker Change: Oh you are launching.
Speaker Change: Got it.
Speaker Change: Also financial Mondeo and Mustang.
Speaker Change: Sure.
Speaker Change: Charleston, yet understood that you didn't.
Speaker Change: Sure Tyler Orange sedan.
Speaker Change: I'm wondering if this is wrong to.
Sure Amanda.
Speaker Change: Sure.
Speaker Change: And if that was shall I say chunky you shut down the calendar this year.
Speaker Change: Natasha already yes.
Speaker Change: They always have done.
Passenger about Angel.
Speaker Change:
Speaker Change: The total payroll, yes, sure ghansham can be yours.
Speaker Change: No the shutdown.
Speaker Change: Chip on chip on the opinion of the channels So sure Austin.
Speaker Change: The whole show Murdo why don't you fill sure Santana with Ashwin.
Speaker Change: Tommy.
Speaker Change: I'll bet, you Shan Shan Shan, rather ensuring Wei Cheng.
Speaker Change: <unk>.
Speaker Change: Hmm away by women.
Speaker Change:
Speaker Change: Oh, I'm sure, you'll keep without ever telling you there.
Speaker Change: As a woman.
Speaker Change: Sure they put on those negotiations.
Oh for the salary.
Speaker Change: Women die.
Speaker Change: Two one holdco to salary inflation that you go to I'm not sure.
Women alcohol, you, Dan Jacob sounds cool feeling kind of neither do the same thing.
Speaker Change: Oh.
Speaker Change: Our total operating expenses, Oh first half year were RMB.
Speaker Change: 100, and a $10 million, representing a decrease of 27 point to 1% from RMB 100 and the.
Speaker Change: And 54 million for the same period last year, especially for our fulfillment expenses as we improve the operational efficiency, our logistics services, our fulfillment expenses as a percentage of our total revenue for the first of half a year has decreased.
Speaker Change: 0.9% compared to what you have been part of the 6% over last year.
Speaker Change: And does the fulfillment expenses amounted decrease.
Speaker Change: 49, 4% to I M. B, a 334 part $74 5 million.
Speaker Change: And our sales and marketing expenses were RMB $45 4 million, representing a decrease of 26 point 28 pardon me, Steve Brozak from <unk>.
Speaker Change: M. B 63, 5 million for the first of half year old lots a year.
Speaker Change: But I'll tell you our G&A expenses were RMB.
<unk>.
Oh 32 points from the media compared from RMB 22 appointed 1 million over same period last year.
Speaker Change: Which is primarily.
Speaker Change: There are two of the share based compensation expenses.
Speaker Change: Increased.
Speaker Change: It was a fish or as we continue.
Speaker Change: Continue.
Speaker Change: To improve our logistics service efficiency.
Speaker Change: The customer acquisition efficiency reduce our operating expenses.
Speaker Change: Be able to maintain.
Speaker Change: Somewhat.
Speaker Change: And as a percentage Oh.
Speaker Change: Is there a revenue decrease in the shot in the future.
Speaker Change: Thank you.
Speaker Change: [noise].
Speaker Change: Thank you. Thank you.
Speaker Change: Seeing no more questions in the queue, let me turn the call back to MS ally for closing remarks.
Ally: Oh, Okay. Thank you operator, and thank you all for participating on today's call. We appreciate your interest and look forward to reporting to you again on our progress in the next reporting period.
Ally: She said with Cheniere classical way to hold such a tiny.
Oh Gosh I believe once you've gone through on this so long that it's absolutely as you have with should that still be that off with at the time, though you don't travel.
Speaker Change: Thank you all again this concludes the call you may now disconnect.
Speaker Change: [music].