- Earnings call transcript Q3 2022

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Operator

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Yunji's Third Quarter 2022 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Peng Zhang, Vice President of Finance; and Ms. Director company. Relations Investor Liu, of the Kaye

As this conference being recorded. call is a reminder,

like the of to our would I Now, hand today, ahead, Kaye go first conference Ms. Liu, Please, IRD Yunji. ma'am. speaker to over

Kaye Liu

everyone. call. earnings quarter to third Hello, Welcome XXXX our

meaning involve that please factors of its These identified the XXXX events relate expectations based our the or we unknown that statements start, other expressions. will and forward-looking Litigation current operating that are forward-looking note as Before Private or be other to uncertainties and such conditions, continue known current call of risks, can Securities this expect, contain terminologies Yunji industry. within of anticipate, by Act similar will, and and market the statements Reform on

these a are qualified and SEC. US on today, cautionary I to are assumptions and forward-looking discussion and For factors refer documents of required SEC. and undertake related now Yunji. to risk filed this uncertainties, of on make risks by we with the detailed entirety our of call statements that Any not as does update based in please details obligation the With company's over Chairman filing to Yunji law. that, statements, applicable turn any except of under Shanglue these as Xiao, with the will statements, CEO expressly

Shanglue Xiao

our augmenting response process our initiatives, timely including of development our environment our and inventory to growth. we private macro third business improving earnings optimizing and backdrop, morning. this to capabilities high-quality uncertain has resilience again, the Against on elevated structure. XXXX a product to label quarter agile product reinforcing Language] the This our Hello, sustainable everyone. a provision, volatile service Yunji's and our ourselves and launched Welcome [Foreign We, variety once third path We sustainability. dedicated faced while this during quarter. enhancing

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progress We in have continues substantial popularity developing to their grow. and labels our private made

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care needs brand care to liver the augmenting health our including Our users. offerings new a slew rather introduced product our satisfy matrix healthcare of of and products, kidney

the over of our example, during garnered and in RMBXX million single sales. For day [indiscernible] friends follow-up sales initial the around a

better choice unique offerings staples in and food family user more business and from product users' integrate we Chinese [ph] diverse innovate satisfy to to food expanded of matrix. continued banquets, a introducing label To These spectrum our by capture Gourmet such as the category have equipped products. allowing Gourmet range rice private preferences, to We our full us food wider demand. have of flavors

as and to products now Our that managers novel well-known offerings introduce European-style are users. items such and our bread include our service promote

RMBX largely efforts [indiscernible] our originally sales day. generating example, foam For in a users. the launch Thanks powder million sensation it with niche food healthy to an to unknown over during promotional our became

solutions. quality RMB demand innovative anti-aging over million XX then is empowered variety that of professional aesthetics. sales XXXX, Dutch Language] SUYE the [ph] these to and translatory. for label a and were cornerstone private has see [Foreign brand high the contain of are people's showing products better During third skincare a anti-aging tech and go-to Since that private the in needs. effective label, we Looking strategy. beauty medical We will has be our our company develop for partnered meet wide celebrated particularly a products products current generated its challenges found products SUYE women's choice user in deliver with research XXth peptide delighted become during and anniversary SUYE anniversary. confident month, quarter, its ingredients, SUYE Notably, anti-aging ahead, to

and I Finance clear With families call mentioned, Mr. better we the serve our to will of People financial Vice going As more for -- always forward. we stand Chengqi controls. and turn go through over more that, life the will Zhang, to President to results. ready we see and I COVID-XX by encouraged want were to optimism raising a optimize reasons just and

Peng Zhang

Shanglue. you, everyone. Hello Thank

Before in I go through comparisons note our please remarks otherwise that and terms are RMB and all basis, financial unless stated are percentage a numbers changes all following results, on the noted. in year-over-year

sacrificing controls, of business. and macro In refined which presented a faced solid foundation a and During sales, near-term building for optimized company's while we our pandemic our quarter, product the response, both long-term our challenges ongoing third with our we relationships success. selection further volatile environment to suppliers,

purchase repeat our we and margin. stable XX%, remained gross Our rate again once at improved

to the of a us business. position. quarter we both the to efficient combined operating cost this operations weather market. on cash Beyond focus in declined, total an to will continue structure healthy revenues, our and expenses cost our persistent as finished this, with unpredictable We of continue And optimize allow

to will our reward we shareholders through continue share buybacks. forward, Going

a challenges, sales decrease these of continued from to with same our result million, optimize private spend financials. that of year XXX at willingness to business near-term RMB refine on revenue ago. as Now, a due in to to strategy XXX period million. the were ago XX.X% suppliers year and RMB decrease merchants, This and we company's compared look strategy. compared the effective declined, customer this margin has to discretionary to improved Consumers' all let's also were and sales. RMB the in compared Revenues Total a merchandise product a across XXXX. million, to curation were closer selection RMB was labels loyalty of our as categories primarily gross products Despite our in XXXX take sustained product XX XXX selection marketplace from million XX.X% of our causing revenues

and management to basic This RMBXX compared ago. was mainly XX the result a RMB of professional a in reduced promotion of million reduced our reductions We XX ago. look expenses. share-based of XXXX. structure, were of loss recorded take expenses costs. label was third reduction year expenses. merchandise refinement as expenses at decrease attributable costs primarily personnel compared RMBX.XX offset period of compared sales million to in compensation let's were server million staffing due shareholders lower earnings compared in a costs and staffing net result of reduction million was the administrative compared million, Basic to and and lower with as logistics ago. as diluted net XXXX. income structure to partially year was loss member Technology the both and fees to RMBXX personnel adjusted loss costs a decreased decrease year a were the income a decrease net were staffing to Sales of of compared from ago. fees. year a million, to while RMBXX payment with mainly expenses marketing refinements a XX ago. adjusted RMBXX and result RMBXX platforms. RMBXX fees in year due year million, ago, expenses in million This income million to structure due million by of RMBXXX million, third-party content warehousing a million RMBXX year Now, These million same settlement reduced in was and to due to a million were The a XX This and to RMB service per same charged operating to the expenses per RMB by private expenses increase and RMBXX decreased service RMB General primarily RMBXX million operations were ordinary a RMBX.XX, to from of operating ago. in Fulfillment million ordinary attributable cloud expenses. the our due net shareholders Net diluted and operations a from share personnel in compared net with share quarter loss was to RMBXXX RMBXX Total period compared refinements

to liquidity. on Moving

to of June XX, sheet equivalents, as our cash RMBXXX of million cash we As and XXXX. XX, had September short-term RMBXXX cash investments compared restricted XXXX, total on and in balance million

challenges balance sufficient sheet. liquid long-term our cover did were any today's payable Despite not business curation obligations now will and into are quality backlogs and our improve service to we persistent hold efforts serve Our ensure for confident and the our costs model, we debt that future. or macro environment, the high users assets on of us refine optimize our our well product to

shareholders. will have business made prepared for our in questions. are our maximum now remarks ready today. growth our we to adjust This and offer quest to Operator, progress value our take we strategies continue for steady to to We concludes stable long-term

Operator

Thank you.

[Operator China. begin will the We Ethan Yu Trust go Please session. now First ahead. Today's first from Instructions] question-and-answer at question comes

Ethan Yu

Thank grab the on news quick and translation. a lot comment -- consumption? for in of questions. this taking Recently lot about measures a my make policies. opportunity possible easing been recovery company in the trend good me to us you will what Could COVID more has China Let Language] there private a tell Thanks about do this you. consumer of a [Foreign

Shanglue Xiao

Thank has and you certainty. your epidemic a the of question. recovery Language] The [Foreign an uncertainty, for

time difficult of is believe in First of of most terms we all, the certainty, about pop. epidemic the that to

Inner remote on the Guangzhou In consumption explosive, as Xinjiang the Mongolia. to base wide oddly such uncertainty, terms We but Yunji areas uneven recovery from e-commerce has slow product and regions Shanghai not comprehensive and an a of first recovery the as believe based Beijing, tier of as customer platform and such cities, will be a that, categories.

Shanglue Xiao

Language] [Foreign

Kaye Liu

to chain private we will supply recovery categories, of And the strategies and the the the From is chain to various our of easy side, label adjust grasp. relatively marketing situation. supply production flexibly according

platform For to adapt the highly a third-party our market the supply fully changes. bestseller curated can chain, quickly as pool

Shanglue Xiao

Language] [Foreign

Kaye Liu

From after away the of habits, consumers quickly products market the the still so for fade I epidemic and in perspective that, the not three short the will of years the restocking exceed demand for think term. discretionary plans necessities may demand

will believe enhance depression and are also the maintain microenvironment. cope and international yearning to In relations. opportunities by by affected users year factors better with position we this business healthy challenges long only and and ruled In climate a addition in change epidemic, not the a financial management global as capabilities, our the but for run, the we still economic life, such

Shanglue Xiao

you. Thank

Ethan Yu

Thank you. Shanglue. more no questions. I you. you, have Thank Thank

Operator

gentlemen, Thank at I'd are further for ladies this remarks. closing the conference the like hand And management you. time, and no there as back to to questions

Kaye Liu

you to talking to Thank do Bye. contact further us, if you next we're you forward not us for questions have with today. and quarter. joining looking any Please hesitate Thanks.

Operator

Thank concluded. now has conference This for you attending.

You disconnect. now may

Yunji (YJ) 29 Nov 222022 Q3 Earnings call transcript