Q4 2023 Yunji Inc Earnings Call
Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's fourth quarter 2023 earnings conference call. With us today are Mr. Shang Lui, chairman and chief executive officer; Mr. Yeqing Cui, tenured financial director; and Ms. Kaye Liu, Investor Relations Director of the company. As a reminder, this conference call is being recorded. Now, I would like to hand the conference over to our first speaker today, Mrs. Kaye Liu, IRD of Yunji. Please go ahead, ma'am.
Okay.
[music].
Good morning, and good evening, ladies and gentlemen, thank you for extended by and welcome to <unk> fourth quarter 2023 earnings conference call with US today are Mr. Shang Lilly Chairman and Chief Executive Officer.
Mr. Yang Zheng tenure financial director.
Speaker Change: Now your new Investor Relations director of the company as a reminder, this conference call is being recorded now I would like to hand, the call over two hours worked to speaker today Mr.
Speaker Change: As you all your D. R. <unk> D. Please go ahead Matt.
Speaker Change: Okay.
Speaker Change: Okay.
Kaye Liu: Hello everyone, welcome to our fourth quarter 2020 earnings call. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995 that are based on our current expectations, the current market operating conditions, and relate to events that involve no unknown risks, for certainty, and other factors of understanding English. These four working statements can be identified by terminologies such as will, expect, anticipate, continue, or other similar expressions. For a detailed discussion of risk, risk, and uncertainty, please refer to our latest document filed with the USFCC.
Matt: Hello, everyone welcome to our fourth quarter 2000 coming from the earnings call.
Matt: As always Bob. Please note that this call will contain forward looking statements within the meaning of.
Matt: Private Securities Litigation Reform Act of 1995 that are based on our current expectations.
Matt: Lastly, operating conditions and relate to events that involve known.
Oh no worries.
Matt: Certainties and other factors the pension industry. These forward looking statements can be identified by terminology such as well it's back anticipate continue or other similar expressions, but detailed discussion of these risks and uncertainties.
Matt: Please refer to our latest documents filed with the SEC any forward looking statement that we make on this call are based on assumptions that to date.
Kaye Liu: Any forward-looking statements that we make on this call are based on assumptions as of today and need to be qualified entirely by cautionary statements, risk factors, and details of the company filing with FCC. We do not undertake any obligation to update this statement exact as required under applicable law. With that, I will now turn it over to Shanglue Xiao, Chairman and CEO of Yunji. Hello, everyone.
It makes sense to be quantified in the entirety by the cautionary statements risk factors and details of the company filed with SEC.
Matt: I mean, he does not undertake any obligation to update these statements expect as required under applicable law.
Matt: That I will now turn it over to Sean So chairman and CEO of <unk>.
Matt: Yeah.
Matt: Yeah.
Matt: I.
Sean: I guess I'll find that all you can see adding Los Angeles tablet idea Holly Hello, everyone welcome to injuries.
Shanglue Xiao: Welcome to Yunji. [inaudible] In 2023, especially in the fourth quarter, e-commerce was booming. We heard a lot about price comparison in the market. The low-priced strategy has become a norm for major e-commerce and live platforms. The low-priced quality is being built. Yunji is not only an e-commerce platform but also a brand company, and a sales service company. We know the damage of the low-priced strategy to the brand. The user value provided by Yunji is high cost. The low return rate is to reduce the user choice time and waiting time. Meanwhile, under our strict supervision, Yunji's price is still stable.
Sean: How do you sort of your earnings calls.
Sean: Or they are suddenly you have a decent you'd okay. So that gives us we shall wonky. When this is all about $10 for your daughter's changes as jobs are people you got done here you can really good ideas thoughts you're welcome to add tomcat deductions isn't that'd be thought though.
Sean: He puts us because it gives them contact cause Philip's impact goes through you guys sell to who the horse.
Sean: Well the things that he got Dennis if you can put yourself that indeed people into Yahoo chat this coaching job at that.
Sean: Do you continue that chance, how youll Shanghai, Nevertheless, agenda tell me they teach and against US Yeah. You can do that because then yeah, yeah I'm thoughts.
During 2023, and particularly in the fourth quarter peak equal match promotion season, the prevailing trend.
Shanglue Xiao: During 2023, and particularly in the fourth quarter's peak e-commerce promotion season, the prevailing trend was to improve the market with intense price competition. Major e-commerce and live streaming platforms adopted low-priced strategies as the norm, fostering a bargain-hunting mindset among consumers. However, Yunji is not merely an e-commerce platform. We are also a brand builder and a sales service provider. We understand the long-term repercussions of relying on low-priced strategies, which can erode brand identity over time.
Sean: Go to market with intense price competition major E Commerce and online training platform top tier of low price strategy.
Sean: Fourthly, a bargain hunting in mindset among countries.
Sean: However, he is not really an equal, but well also I'm glad to be with them and I see all of a sudden they provided.
Sean: Oh, sorry, the long term repercussions, okay, really although pricing strategies, where you can erode our brand identity overtime.
Sean: The value we deliver to us.
Shanglue Xiao: The value we deliver to users lies in our cost-effective products with low return rates, as well as in minimizing decision-making and wait times for our users. Our commitment to a carefully curated product selection ensures that ING maintains a stable average order value, even animating the market's focus on low-priced products. The stability of our experts is closely related to our product capabilities. We have developed a lot of high-priced free-brand products around the love for food, beauty, and health. We have widened the range of originals and upgraded some popular products. Meanwhile, our free brands have gradually emerged as some popular raw materials after several years of sales and development, such as collagen, protein, and so on. We are making successful attempts to gain the recognition of consumers to develop products of other types for these raw materials. Different methods of use and different effects are the directions we are exploring.
Sean: In our courts dispatch of protest with low return rates as well as in minimizing he seem to making and wait times for all of us at all.
Sean: Yeah.
Sean: Our carefully curated played out is the lesson insurance about E. G. He maintains a stable average order value even at a miss Tennessee market smokers on loan pricing.
Cause any other wouldn't didn't you will miss something underneath the sheet shall glenda well known.
I mean, I can't comp kind of follow and of course, you've got the European bad assumption. When they talk about are you able to permit you to is you're still playing the ball team chinchillas, having SMT well, let's see what came back that union. They should also look if I go to Daniel she handful as yet so Wayne that you know he will join them by using gene and it wasn't that.
Sean: Do you see anything on the Tulsa.
Sean: Somebody said there's been.
Speaker Change: Yeah, Yeah, no. It's easy let you talk to me, that's something I thought, but I wonder if you.
Speaker Change: But on this show you those the woman pets with a final shot.
Speaker Change: Yeah, Jimmy to the tennis shoes that you just call so you're seeing things going on when you are shopping the questions here.
Shanglue Xiao: On the basis of the products we have established, these new products are easier for consumers to accept quickly. We hope that consumers will not only become loyal users of single products but also love the components we have selected and become loyal users of Yunji's entire consumer market, increasing their trust in the brand. The stability of our average added value is intrinsically linked to our highly developed product capabilities, centered around the theme of love for food, beauty, and health. We have developed a range of cost-effective private label products.
Well unless you want somebody that would listen to me.
Speaker Change: That's only one who have minutes yeah.
Yeah, well the Chinchillas Jets I mean, do you think they should all be choosing the social Yahoo, they've converted two mega beer.
Speaker Change: He stay ability offer an hour.
Speaker Change: Hum.
Speaker Change: Could lead into our Holly developed product capability centered around the same level of food beauty and how we have developed a range of course is that private label program. We have not only some of the existing category, but also it was just absolutely I agree with you.
Speaker Change: Our lineup of not a huge part of that.
Speaker Change: Oh, what do you spend of Madden, yes, its predominantly all of Manhattan in Dallas, We have I think he's finding T. E D. Great that resonated strongly with all of you that base Sunshine collagen and probiotics building on success for your cloud and it aims to use and feedback we have aimed.
Shanglue Xiao: We have not only expanded existing categories but also successfully upgraded our lineup of mega-huge products. Over the span of many years of product development and sales, we have identified key ingredients that resonate strongly with our user base, such as collagen and probiotics. Building on successful trials and enthusiastic user feedback, we have introduced a variety of new products across multiple categories that innovatively incorporate these popular ingredients, while exploring different ways to harness these ingredients and enhance product functionality, leveraging the existing popularity of these ingredients.
Speaker Change: As a variety of new products across multiple categories that we incorporate to be popular and greatly.
Speaker Change: Well I guess I'll wait.
Speaker Change: T O honey these ingredients.
Speaker Change: He has paid out a function now.
Speaker Change: Elaborating the leasing popularity of these ingredients all I need.
All things have been warmly embraced by how we're doing it.
Speaker Change: We NCO coordinate loyal users.
Speaker Change: The major projects, who appreciate our carefully selecting the ingredients.
Speaker Change: Doing so we will evolve our user base that is loyal and security in Halloween. She brought ecosystem clustering a deeper trough in all of that.
Shanglue Xiao: Our new offerings have been warmly embraced by our users. We aim to cultivate loyal users of individual products who appreciate our carefully selected ingredients. In doing so, we will develop a user base that is loyal to the entire Yunji brand ecosystem, fostering deeper trust in our brand. We are looking for a more transparent product list and more realistic feedback. There have been many high-quality natural raw materials in China for the last 5,000 years, such as stone pots and sandstone.
Speaker Change: Well the change you can pull me, there's some hidden Columbia a consensus.
Speaker Change: So with us out with tenure and you'll see the use of the two that you know the rules shufu sake to his own so when you're going to see Mediatek, Google could do the us adopt more beautiful appeal, she's a little cool, but she saw the Shanghai shipping with leukemia, well publish it that so what's called yet so did change the whole year.
Speaker Change: She won't even when they go to the cause and seeing you on the Costar suite.
Speaker Change: And you will see we are coming into.
Speaker Change: And comes to us and our A&D singly.
Speaker Change: We actually take a January user feedback we draw a problem they need to have a huge offering over 5000 of yourself the Chinese entry to source high quality natural ingredients fantastic Onboarding honesty box going he used to have a knowledge magazine now has a carefully.
Shanglue Xiao: These well-known medicinal herbs in Chinese medicine, after the second polishing of science and technology, have become healthy food that can be absorbed into the mouth and absorbed. For this reason, this year, I climbed the snow mountain and walked on the prairie to actually witness good raw materials and good products. I hope that users can eat with more peace of mind and feel more at ease. At Yunji, we are committed to improving in terms of our ingredients, and we actively take user feedback very seriously. We draw upon the rich heritage of over 5,000 years of Chinese history to source high-quality natural ingredients such as dendrobium and sea buckthorn. These renowned Chinese medicinal herbs are carefully processed using advanced technology to produce healthier foods that are easier to digest and absorb.
Speaker Change: That using advanced technology tariff is healthier foods that are easier to digest and it has evolved over the past year I have personally journey for a long time and there's a lot of plans to authenticate the quality also all of our ingredients and.
Speaker Change: Ensuring that all the uses can kind of see them definitely televisions and peace of mind.
Speaker Change: So you have that.
Speaker Change: But my sense is just on the knee pool, then you got hit with it we'll have to Hartlepool cool Swedish also well below the 2014.
Speaker Change: We talked about that you're going to fund me and the senior piece, yes.
Speaker Change: Posed to them, how you ought to improve our food you need cool hotel tempting the Nintendo switch.
Speaker Change: He pays I couldn't go to terminus two that franchisee attrition they often in.
Speaker Change: Mr. Myles Walton when you're recognizing powerful between if I kind of got it and.
Speaker Change: And then some so a couple of months to enhance customer service and drive sales, we are coming to the continuous improvement of our southern manager to put our company has been professional.
Shanglue Xiao: Over the past year, I've personally journeyed through mountains and flatlands to authenticate the quality of our ingredients and products, ensuring that our users can consume them with confidence and peace of mind. In terms of marketing, we recognize the powerful links between exceptional service and strong sales performance. To enhance customer service and drive sales, we are committed to the continuous improvement of our service managers' skills through comprehensive professional training and technical support. Furthermore, we have invited a number of our sales managers to explore and discuss product origins.
Speaker Change: Mustang Anthony called Cold side.
Speaker Change: Furthermore, we have the right number of hours that as manager is to explore and try to predict all region.
Speaker Change: First of all on fueling allows them to get them more without really do much alone which they can.
Speaker Change: Sure uses in our community.
Speaker Change: Jimmy lets say it is about doing Huntsville team by somebody who the shrinking woman to spill something Jeff who is your father Shuffle Moshe Youll go ahead, Tony Hawk, Pete shall so you need to be gone that he took when he thought it was about him he too she since you've had a bunny.
Speaker Change: Okay. So you do either Cushing possible video shot tissue. She is not going to go with it but he says in pizza hut or shutdowns of Triple a barbell are you.
Speaker Change: DRAM actually roll out a range for that.
Speaker Change: Our health care brand uplink alongside these products. We also unveiled a novel played out plus others and it really was modeled at home purchasing a car that is.
Speaker Change: They can gain access to energy transition.
Shanglue Xiao: These first-hand experience allows them to gather more product-related materials, which they can then share with users in our community. In March of this year, we launched a new product with the help of Dajinkang's free brand We launched a product-plus-service, one-to-one sales model After the user purchases the product, they can enjoy Yunji's system management The system is managed in a 28-day cycle Participants can enjoy one-to-one personalized service and follow-up management on the spot On the day of the launch of this new product, the sales exceeded 8 million yuan During March, we rolled out a range of new products as part of our healthcare brand upgrade Alongside these products, we also unveiled a novel product-plus-service integrated sales model Upon purchasing a product, users can gain access to Yunji's 28-day body image management program which includes personalized one-on-one services and convenient online tracking via mini programs Our new healthcare products were a resounding success with sales surpassing 8 million yuan on launch day, When it comes to basic delivery customer service, we focus on firm quality merchant management, internal customer service training, and service policy optimization. We also conduct regular customer follow-up and online services to improve and ensure overall customer satisfaction. AI is a hot topic in 2023.
Speaker Change: Body image management program, which includes personalized one on one services a convenient online tracking yeah mini programs our new.
Speaker Change: That's where I was talking about.
Speaker Change: So it was surprising.
Speaker Change: Going on beyond lunchtime.
Speaker Change: Yeah.
Speaker Change: Okay cool.
Speaker Change: As a whole from it well mental and she said for sundial Gladney Colocation carpool, So you'll watch us.
Speaker Change: I think she can cope with a brief up because you're going to fill it out with.
Speaker Change: When it comes to the daily cost for most of it we focused on a third party merchant management internal cost of my stomach training anesthetic policy optimization will also come back right in York Cosmos follow ups, and then I'll answer that.
Speaker Change: Ooh Ooh and ensure overall customer satisfaction.
Speaker Change: Yeah.
Speaker Change: The Milwaukee will need to ask you for me Keith.
Keith: Sure she natasha towards used with a cold you cope with that you shouldn't get why even though it's all concerning the food you need physical door module woman Ellen neat lingo.
Keith: The other people say well why do you find do Yahoo, Cree shelf food you need pushing you to sell tend to you know that basically at zero in Q1.
Keith: Go ahead and jump on to a food you need good quite good.
Keith: Call that convinced you that she said how long you bet, Colorado being people, who do you bet.
G H.
Keith: So that means you can try to aim 'twenty can easily and we have been in.
Keith: In Poland, New ways to play in Hollywood operation during the year I went to my board and he is more what is going to be completely and we now integrate AI into a range of functions. Some baby cosmetics, catwalks and handling routine requires them to attack to more advanced in Florida.
Keith: For the suburbs messages for example use is often our 28 day Buddy image management program till now comes out with service manager regarding their daily nutritional needs and calorie intake, our AI and how it kind of thousands seamlessly support surveys managing Iraq.
Keith: And then afterwards, we calculate in personal lines the rapidly deteriorating.
Keith: So real time and provide an informed and impactful anyway.
Keith: Besides just the linearity of that did you sell either towards the end of the call can deal with but you think Italia Baku Hoselton she's out total Kobe.
Shanglue Xiao: We have also made some new attempts in the field of AI technology, from basic customer robots, phone guidance, to more intelligent service manager support work. At present, our AI capabilities can be well recognized. For example, in our system management program, users can consult with the service manager about nutrition matching and calorie intake, etc. Our AI health consultant will help the service manager calculate the calorie count accurately and provide reasonable advice.
Keith: Each other in tissue types of it going forward. It seems that so you get the adult to switching.
Keith: That concludes outrage spread changing because of Harry our fractions for tiny tiny thing moving forward, we remain committed to our strategy of the two radio predict election, ensuring product cost insurance is that permanent.
Keith: And with the brand image and are actively exploring other marketing avenues to further automate the EG Brent.
Keith: Well the thing that he does anytime you acquire a woman that's how we got to go again to me that you have for yourself how old it is an hour.
Keith: Okay.
Keith: With that I have seen a golf parity financial remarks.
Keith: Okay. Okay.
Okay. Thank you Sean.
Sean: Hello, everyone.
Before I go through our financial results. Please note that all numbers in there for any remarks on time, sometimes on the old crushing and percentage changes are you.
Shanglue Xiao: AI was a significant trend in 2023, and we have been exploring new ways to apply it in our operations. During the year, our capabilities evolved significantly, and we now integrate AI into a range of functions, from basic customer service chatbots and handling routine call center tasks to more advanced support for service messages. For example, users of an average 28-day body image management program can now consult with service managers regarding their daily nutritional needs and calorie intake. Our AI health consultants seamlessly support service managers by rapidly and accurately calculating personalized recommended calorie intakes in real time and providing informed and insightful advice.
Speaker Change: Year over year basis, unless otherwise noted.
Speaker Change: During the fourth quarter alternate country operation.
Speaker Change: Relatively stable, although we continue to reinforce our core operational process.
Speaker Change: Refinements to England measurement of protests allowed us to generate stable gross profit.
Speaker Change: We maintain our strategic.
Speaker Change: England crew management active monitoring virus product kind of growth on a weekly or monthly basis to ensure optimal book levels. This approach not only optimize our after.
Speaker Change: Yes.
Speaker Change: Utilization, but also effectively a manchester catch growth. Meanwhile, we are actively pursuing more fishing with cash flow measurement.
Speaker Change: Now, let's take a closer look at our financial post.
Speaker Change: Total revenues were $149 million compared to 289 minutes.
Shanglue Xiao: ??????2023????????????????2023?????????? ?????????????????????? ???????????????????????? ????????????????????????????????????????????????, That concludes our strategic summary and reflections for 2023. Moving forward, we remain committed to our strategy of curative product selection, ensuring product cost-return effectiveness, enhancing brand image, and actively exploring diverse marketing avenues to further elevate the Yunji brand. That's all for my sharing.
Speaker Change: Revenues from self book starts were 112 million and the revenues from our marketplace business.
Speaker Change: So tier 4 million just changes were primarily driven by ongoing refinements to our product range across all pet growth.
Speaker Change: Coupled with the optimization of our supply on our merchant network, resulting in a short term.
Speaker Change: Yeah.
Speaker Change: Despite these challenges our gross margin remains relatively solid answer.
Speaker Change: Book is 6.6% this was due to some extend customer loyalty toward our private label.
Back to your product.
Speaker Change: Current issues gesture.
Speaker Change: Now, let's take a look at our operational expense.
Speaker Change: Procurement expense or turn it for 1 million compared to two 2 million in the ESCO. This was primarily driven by a decrease in warehousing and the logistics expense.
Speaker Change: Coming from lower merchandise sales reduce the personnel costs due to stopping structure optimization and a decrease of service fee charged by third party payment of Sacramento practical.
Speaker Change: So the MX expense were.
Speaker Change: For the nine minutes compared to.
Speaker Change: But did nine minutes here. So this was primarily a result of a decline in member metric on it.
Speaker Change: Teresa promotion expense.
Yeqing Cui: Next, I'd like to welcome our financial director, Yeqing Cui, to share the financial situation with us. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms, and all calculations and percentage changes are on a year-over-year basis unless otherwise noted. During the fourth quarter of 2023, our operation remained relatively stable, and we continued to reinforce our core operational process.
Speaker Change: Knowledge on the content expense.
Speaker Change: Tomorrow, a minute compared to 17 minutes scope, but the crews who are mean you do too.
Speaker Change: The reduction in personnel cost to resolve her brown star fee structure for monetization and the reduced silver coker turnaround or the administrator expense work.
Speaker Change: Okay, Paul part of the 5 million compared to 44 9 million. This was mainly due to the reduction in personnel cost as a result.
Speaker Change: Darby structure refinements are the share based compensation expense, partly offset by an increase in allowance for credit loss.
Speaker Change: Total perfect expense in the fourth quarter decreased to 100 crude under 10 minutes from where I'm trying to.
Yeqing Cui: Our refinement of the inventory management practice allowed us to generate a stable gross profit. We maintain a strategic focus on inventory management, actively monitoring various product categories on a weekly or monthly basis to ensure optimal stock levels. This approach not only optimizes our assets and utilization but also effectively manages our cash flow. Meanwhile, we are actively pursuing more efficient cash flow management. Now, let's take a close look at our financials. Total revenues were $149 million, compared to $289 million a year ago. Revenues from sales of merchandise were $112 million, and revenues from our marketplace business were $148 million.
Speaker Change: <unk> 3 million in the same kind of returns to rosborough Christian was for $10 million compared to 33 million that's cool.
Speaker Change: Net loss was <unk> 2 million compared to 68 million, while adjusted net loss were <unk> 5 million compared with 31 million.
Speaker Change: Basic and diluted net loss.
Speaker Change: Attributable to ordinary shareholders were both two three cents compared with two cents per ton is down to.
Speaker Change: Turning to the liquidity as of December.
Speaker Change: Turning to the industry, we had a total of 552 million in cash and cash equivalents.
Speaker Change: In the short term investment.
Speaker Change: Our balance sheet compared to.
Speaker Change: 606 six.
Speaker Change: Two 9 million at December 31, 20, if any to our liquid assets were sufficient to Carlo.
Speaker Change: Our apparel obligations, although we do not hold any long term bank loans or step is our balance sheet. In addition, we are dedicated to making the most of our working capital and a smart.
Yeqing Cui: These changes were primarily driven by ongoing refinements to our product range across all categories, coupled with the optimization of our supplier and merchant network, resulted in a short-term impact on sales. Despite these changes, our growth margin remained relatively solid at 46.6 percent.
Speaker Change: Managing that to better support our operations.
Speaker Change: Summary, the fourth quarter. So after you need significant strides towards our long term strategic objectives.
Speaker Change: Ongoing efforts to refine our English I imagine when a sitcom coupled with our commitment to for tenable, and especially effective asset management law.
Yeqing Cui: This was due to sustain customer loyalty towards our private labels and our effective product creation strategy. Now, let's take a look at our operation expenses. Human expense was $25 million compared to 32 million years ago; this was primarily driven by a decrease in warehousing and logistics expense. Demand for lower merchandise sales reduced the postman cost due to staffing structure optimization and decreased the service fee charged by third-party payment settlement platforms. Sales and market expenses were $29 million compared to $2.5 million. 59 million U.S. dollars.
Speaker Change: The key to this progress looking ahead our books.
Speaker Change: With me on continuously and hung and counting.
Speaker Change: Efficiencies.
Speaker Change: Thereby ensuring our company is resilient and adaptable ability.
Speaker Change: I will start here.
Speaker Change: Because equip us to effectively come for the future I'm trying to just capitalize on opportunities in the evolving.
Speaker Change: Evolving economic environment.
Speaker Change: This conclude our prepared remarks for today.
Speaker Change: Operator, we're now ready to take questions.
Speaker Change: Thank you we will now begin the question and answer session. You still have a question. Please press star one.
Speaker Change: When asking a question. Please state your question Chinese first do you have to repeat your question in English for the convenience of everyone on the call.
Yeqing Cui: This was primarily a result of a decline in membership fees and a decrease in business promotion expenses. Knowledge and content expenses were $12 million compared to $17 million in U.S. dollars. The decrease was mainly due to a reduction in personal cost resulting from staffing structure optimization and reduced server costs. 44.5 million compared to 44.9 million years ago. This was mainly due to the reduction in personal costs as a result of staffing structure refinements and the share base compensation expense, partly offset by an increase in the allowance for cash flow. Total operating expenses in the first quarter decreased to $110 million from $100 million.
Speaker Change: Please hold while we poll for questions.
Speaker Change: Okay.
Yeah.
Speaker Change: Our first question comes from either you win Hurst for China.
Eileen Hurst: But anything different with the Q1, sometimes it's always done don't forget to vote.
Eileen Hurst: She or he called me, so I'm going to see one time thought that it's easy to use.
Eileen Hurst: But you talked about the United States.
Eileen Hurst: Yeah.
So you can't really go too far into that.
P J polyolefin suburbs.
Eileen Hurst: Sure Yeah on immigrants, who got James do you want me.
It would make me think Michele Buck.
Eileen Hurst: Cause me to change them, so I'll take a detour lake.
Eileen Hurst: You're talking about.
Eileen Hurst: Earlier this year.
Eileen Hurst:
Eileen Hurst:
Eileen Hurst: Maybe Jim something about that that Ah I, just heard you mentioned customer service.
Eileen Hurst: <unk> observed that in recent months major.
Eileen Hurst: Our e-commerce platform and.
Eileen Hurst: Give yourself policies, such as given day no using returns.
Yeqing Cui: $53 million in the same period of 1922. The last round of questions was $40 million, compared to $33 million a year ago. The net loss was $66 million compared to $68 million a year ago, while adjusted net loss was $65 million compared to $31 million a year ago. Basic and diluted net loss attributable to ordinary shareholders was $0.03 compared with $0.02 in the same period of 2022. Turning to liquidity, as of December 31, 2023, we had a total of $552 million in cash-as-cash equivalents with cash-a Our liquid assets were sufficient to cover our payable obligations, and we do not hold any long-term bank loans or debit our balance sheet. In addition, we are dedicated to making the most of our working capital at a smarter asset management to better support our operations. In summary, the fourth quarter saw us taking significant strides towards our long-term strategic objectives; our ongoing efforts to refine our inventory management system, coupled with our commitment to sustainable and effective asset management, were key to this Looking ahead, our focus will remain on continuously enhancing our efficiency, thereby ensuring our communist system's resilience and adaptability.
Eileen Hurst: Free shipping in remote areas.
Eileen Hurst: What do you think these new policies, which are biased towards consumers.
Eileen Hurst: Do we have any impact on our performance. Thank.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: So the one thing you should get some people in Shang.
Speaker Change: Shopping as she pointed out before me I, So Shannon will minimum wage.
Speaker Change: And also a Halloween time their shopping pattern you can gradually polyol, we might be doing good.
Speaker Change: So I'm fishing, where you can create your tone on shopping E. G O T shirts, and Chi Tsang pizza boxes.
Speaker Change: Thanks, One quick couple of beta foods until actual not being true pre Charlie Shanghai, which not been had pretty healthy assortment, which all you from kind of what we're doing with cancun in central Queensland attention. So we don't see shelf intra quarter, you had I should put a chunky, who see jobs well known P gene could adjuncts, we forgot women cool.
Speaker Change: We went on a tour midyear and we often do opinion and pizza.
Speaker Change: This issue involves the nature of our products and they use their consumption habits festival, where he believes that to be a good platform. The selling point illustrating yorker that cannot be 49.9, RMB wisdom free shipping and agree that consumption behavior cannot be based on <unk>.
Speaker Change: Public consumption.
He is actually increased merchandize, Dallas and private label products has always maintained I lose cosmos asked us that his policy. However, our quality response rate is very low compared to other platforms, which is in separate bowls and our physician user education.
Yeqing Cui: I was strategic, enabling us to effectively confront future challenges and capitalize on opportunities in the evolving economic environment. This concludes our prepared remarks for today, operator. We are now ready to take questions. [inaudible] Thank you.
Speaker Change: They believe that Louis tens are important but what ultimately attract.
Speaker Change: Coffee and iced tea.
Hi, Chase is unique product offering and of course in fact isn't it.
Operator: We will now begin the question and answer session. If you have a question, please press star 1. When asking a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. Please hold while we poll for questions, and many more.
Speaker Change: Our average order value is enough to cover our cost momentum as I said wait it out and we also have many loyal users in remote areas.
Speaker Change: Oh.
Speaker Change: Thank you for your question.
Speaker Change: Oh, Thank you I have no more questions.
Speaker Change: Okay.
Speaker Change: Once again, if you have a question. Please press star one to remove yourself from a question in queue. Please press Star then two please holger.
Ethan Yu: Our first question comes from Yifan Yu with First Trust China. I'd like to ask, I just heard Mr. Xiao mention the issue of customer service. We observed that in the past few months, a series of policies have been launched on other major platforms, such as the replacement of building materials, the reservation of some remote areas, and so on.
Speaker Change: Yeah.
Speaker Change: And there are no further questions at this time I'd like to hand, the conference back over to the management of our closing remarks.
Speaker Change: Yeah.
Speaker Change: Thank you for joining us today, he said not hesitate to contact us. If you have any further questions. We look forward to talking with you next quarter.
Speaker Change: This conference is now concluded. Thank you for attending you may now disconnect. Thank you.
Ethan Yu: I'd like to ask if our company has any new ideas in these areas, especially the strategy of remote consumers. Will it affect our revenue and reservation costs? Thank you.
Speaker Change: [music].
Shanglue Xiao: I just heard you mention customer service. We have observed that in recent months, major e-commerce platforms have launched a series of policies such as seven-day no-refund returns, free shipping in remote areas, et cetera. What do you think of these new policies, which are biased towards consumers? Will the schedule have any impact on our performance?
Shanglue Xiao: Thank you. This question is related to the two aspects of the product itself and user consumption habits. First of all, we think that if you want to make a good platform, your product cannot be sold for 9.9 yuan. The user's consumption behavior cannot be based on impulsive consumption.
Shanglue Xiao: Yunji, especially Yunji's self-service products, have always maintained a service policy of relaxation and customer-first, but our quality return rate is very low compared to other platforms. This is something that we can't fully separate from user exchange. We think that a relaxed policy is important, but in the end, what attracts consumers to repurchase is still unique products and cost-effectiveness. Our average customer price is enough to cover our customer maintenance expenses. We also have many loyal users in remote areas. This issue involves the nature of products and user consumption habits. First of all, we believe that to be a good platform, the selling point of your product cannot be for 9.9 RMB with free shipping, and the user's consumption behavior cannot be based on impulse consumption. Yunji, especially its merchandise sales and private label products, has always maintained a loose and cost-benefit service policy.
Shanglue Xiao: However, our quality refund rate is very low compared to other platforms, which is inseparable from our sufficient user education. We believe that loose terms are important, but what ultimately attracts the most users is the quality of the product, consumers' willingness to repurchase its unique product offering, and cost-effectiveness. Our average order value is enough to cover our customer maintenance expenses, and we also have many loyal users in remote areas.
Ethan Yu: Oh, xièxiè. Thank you. I have no more questions. Once again, if you have a question, please press star 1. To remove yourself from the question tube, please press star then 2. Please hold.
Speaker Change: Yeah.
Speaker Change: [music].
Operator: As there are no further questions at this time, I'd like to hand the conference back to the management for closing remarks. Thank you for joining us today. Please do not hesitate to contact us if you have any further questions. We look forward to talking with you next quarter. Bye. This conference is now concluded. Thank you for attending. You may now disconnect. Thank you. [inaudible]