Earnings call transcript Q1 2023

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Operator

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's First Quarter 2023 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 Relations to our would I Now hand today, Please ahead, Kaye Yunji. first conference Ms. Liu, of Investor Director go ma'am. speaker to over

Kaye Liu

quarter our welcome call. earnings first everyone, XXXX Hello, to

to within Act current Before start, related of uncertainties and operating are on our statements XXXX and known that of current Private conditions will contain this to that that we meaning call Securities expectations unknown market other note and industry. forward-looking Yunji please involves the events Litigation Reform based its and risks, factors

can statements similar forward-looking expect, anticipate terminologies continue be These such expressions. as will, identified by other or and

not document company's update filed under U.S. of forward-looking expressly detailed the SEC. make this are and that factors Any applicable and details discussion does any entirely risk on with we'll qualified these statement filing a today are as as required uncertainties, with of statements, of assumptions latest statements except based please cautionary on undertake call and obligation SEC. For our risks the refer law. by Yunji these to to

will I and of over to now Shanglue CEO Xiao, Chairman turn Yunji. that, With

Shanglue Xiao

the for recovering. during half this has more of And enriching COVID. first XXXX earnings that everyone. Welcome to anniversary three same have since the I'm and XXXX. lives. the And steadily been years Yunji's of first time, celebrated been It delighted to XX, Hello, gradually announce our fulfilling outbreak and year, May call. quarter consumption we consumers on corporate Xth been has now yearning

and an and new the service advantages, a managers will ready-for-community-service opportunity embark exploration food, initiative. partners Leveraging our During to attendance, in and beauty brand gourmet employees, we of with competitive comprehensive on healthcare. we our anniversary took exciting announce celebration

into delve these quality of enhancing will of role and inter-connectiveness categories the life. We

to during emerged end. services our March, community line super with local years, growth groups focus and trends, affordable supply offers well the chain. leaders over chain particular neighborhood our a at have service these food In in products a This selection existing and the of into leverages the from the exclusive food food service e-commerce Super country use all as consumption new to door gourmet many we with supply super wide community gourmet a to In category. it bring community trend integrated on steps. around

purchases, and and model, or a radius, every XXX-meter this on will closely product to community interactions the facilitating basis. new set networks residing available Under e-commerce for community. super even This super connect is regular commercial innovation of community dedicated within service daily purchase. leader featuring e-commerce supply become department Furthermore, popular connected for the high-frequency group most encourage community in repeat chain hourly we to department untapped beyond expanding leaders. our rate users an To address have current of up will with subsequently our actually

build villages. deliver Beyond scope sales initiatives local expanding community services, to drive of invest and to brand more the awareness, our comprehensive

all over from support of our needs. natural Due body further range country. roaring both our beauty developing or of composite our supplements, impressed in label them, their committed internal and present, products skincare, a managers prevention, To had by care At and the to are for for private and expanding and meeting more. zeal hair beauty we address professionalism, off-line management, enhance to loss for I was portfolio privilege events of I a a label recent life. that external products service highly personal private diverse passion

the continue of beauty, users. possibilities needs and ensuring that actively forward, to meet will we our in Going explore evolving realm we opportunities of further the

families next-generation of diverse We is are that developing with an intention product line composition a private of cooking, broader everyday making The ingredient strategy with brand cater [ph]. product, line mass market, oil additional products acids. well-based range recently label oil launched with oil needs, a oil healthy the XX% baffling their our to and consumer the content of cooking indispensable new we’ve a a In developed of change resource and it of an an the in edible in fatty industry. of over Chinese revolutionary a a

video. lifestyle community cooking to to sales off-line strategies resounding include choice articles among exceeded Recognizing launch. and events Line novel million first relatively our Thanks on a of and promote Everyday Oil efforts, number users. and massive live presentation, strategies is and to launched oil units a a demographics X in a these a engaging with of that new where it employ our concept, as for we These combination healthy healthy short its success,

label pivot A to we is trend, for this intensifying reactive importance healthcare people's their of the recent immune consciousness system. well-being. are approach nurturing boosting their portfolio. efforts empower products phenomenon private from These own to increasing and Capitalizing on individuals actually to develop products of healthcare a our health our

significant and of product to lineup. we be popular. We especially offerings, search healthcare tablets demand products proactively responded calcium a number of premium first new for including demand in the within this launching proving saw a Yunji's the by to During quarter, addition growing Qingziyang probiotics

off-line ceremony. side community by engagement of launch a marketing half the of in product the holding a including the and year front, we the the new lowest On event, an range energized first production

management private label kick-off month to own Xinjiang, the alone participation used managers. our plan, including of we milk on organized activities During variety have service garnered in February, we than more offline this milling events meeting and Since is sold. March X,XXX of a Changsha, the of the sales

we giving by inspire managers. and cultivate also a our of a Line participants healthy certainly easy individuals lifestyle a the understanding and X,XXX-person embrace product. Oil, sense use, cultivated For deeper of among our to foster held to growing Everyday support strong events mutual pride sales These connectivity

our AI support and technological development to management. We engaged exploring community out during commitment research to aim our round Upon nutritionist initiatives individual more these nutritionist, innovation, their receive that our provide clock and needs. fresh ensuring users users their customer efficient, actively a tailored will AI to managers. advice, service is delivering with experience the department for line recommendations gradually personalized our introduction, roll nutrition the AI In AI service a and and and developing second in quarter,

efficient help rise. as AI needs our into service, to and preferences community will community, insights we customer to implementing and By AI deeper us will more accurately deliver the rapidly of they address support. management personalized gain Furthermore, issues allowing customer us and promote and

the present users. an intensive service these a video apply of to short we we training graphical, as and thousands of tens and and By resources our our managers leveraging and resources, robust content, more and solutions AI of for With our AI-powered textural effectively deliver support fully will set center services. can rapidly set collection that high-quality vast of the

than our present provide more just job. we pathway harmonious managers, a a a For to achieving service balance. We work-life

are and products people more our more to also live lead are We that to providing and fulfilling healthily. better lives. for ordinary making dedicated to we services to committed it offering Moreover, users individuals to easier enable while opportunities

Finance, to With to that, Zhang, Mr. Peng of the turn I President Vice over call financial go results. will through the our

Peng Zhang

Hello, Thank you, everyone. Shanglue.

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

to the last implementing spent development have year, to private strategic post-COVID first product challenges a to our label Responding the therapy interest immunity of the and allocating After navigating adapt cultivation resources we shifting we the for number quarter consumer in of refocused capture nutritional enhancement, product. healthcare upgrades the more of to XXXX environment. of trends, growing

This repurchase efforts, margin our Despite requirements our during last our quarter. we product from improved net narrowed as on repurchase attempts ongoing to XX.X% period the by XX.X% our optimization from the enhance for loyalty top gross food. online same Meanwhile, and our loss initiative, contributed combined such recorded pressure quarter. operating to efforts with XX.X% year, mix to user profit the line other more rate reminders, as and

consumer to that well-positioned leave respond We to our emerging future. are and efficiency the our emphasis us on ability trends confident for

take from RMB year compared million XXX million, at marketplace let's were XXX our RMB look RMB revenues XXX million were Revenues merchandise RMB XX from a Total million. business were closer of Now revenues our a sales and ago. financials. to

change all categories This across and merchants, due impact was optimize on and selection primarily to strategy to selection our product our refine sales. our suppliers a has of near-term continued which

gross to to we labels result margin our to to consumer was Meanwhile, of recover. consumer effective compared year ago. power curation XX.X% confidence strategy. our improved still This have and and our private product XX.X% these spending Despite yet fully loyalty a a sustained challenges,

million RMB as to result staffing and ago. a due merchandise and decrease operating expenses. primarily take let's compensation in to compared at Now was our reduced to expenses a XX Fulfillment XX requirements reduced were million a costs personal a structure RMB This share-based sales, due expenses expenses. logistic warehousing lower of look year

XX marketing result RMB management a a million business Sales refinement, This costs of member expenses and and million personnel fees year personnel due mainly promotion expenses. structure compared reduced reduction to a XX was a to were ago. decrease as RMB in staffing in

were costs and due server of ago. year structure expenses decrease requirements XX as Technology a personnel The result XX to and reduction a RMB cloud mainly compared a in million million content costs. was to staffing RMB reduced

ago. year XX was million and requirements, RMB to due professional This compensation personnel RMB as fees service to were expenses decrease administrative lower costs mainly of and in share-based a expenses. million a compared reduced XX staffing structure result General a

decreased to RMB X of period in same recorded compared in Total RMB million the operations XX the to RMB from first million operating ago. million XXXX. year X XXX from a expenses million quarter We RMB of income

a XX loss adjusted compared Basic share XX RMB were same compared shareholders X.XX the X.XX with and with a diluted million both in RMB while year per compared attributable was RMB million to XX RMB net with XX RMB in XXXX. was ordinary loss RMB Net million ago, net year period loss million ago.

liquidity. to on Moving

million balance XXXX. equivalents, and million restricted as total short-term As of XXX XX, in cash sheet to our compared March investments XXX December cash and had RMB we cash a XX, of XXXX, RMB on

assets liquid any our sufficient cover we sheet. our were did to not loans hold and obligations, Our balance back debt or payable on downturn

of by trend we our recovery post-COVID to efficiency. will while operational continuing exercise label take ahead, advantage products the cultivating Looking private

and for with customer enhancing will off-line our and synergistic to our collaboration and strategic This initiatives We deliver a online our strong the future foster to users. will loyalty lay of goal attracting position approaches value us between new development shareholders. long-term will foundation

concludes Operator, take ready prepared questions. remarks to our we now are for This today.

Operator

Instructions] [Operator from China. ahead. of question Yu Trust go Ethan Please Our come First first will

Ethan Yu

company in How products? business? initiatives taken? Additionally, consumer confidence impact private Thank the of rapid overall, mobility. have recovery unstable. brand or And economic We to the a Yunji your measures off-line what awareness implemented remains specific and plan company But it you. and specific implement interstate your what our label observed our to has have service does enhance

Shanglue Xiao

Yunji's within advantages. you your off-line their Thank connection both for between own question. its online has people and

online off-line even alone as the The managers and model, fostering Before operated and paramount. help a company cultivating customers, trust experience private between developed bridge pandemic, our marketing alone. providing became the and better their labels communities service becomes as Yunji a This education customer we trust more more with gap important offline and with combined products. the

high-quality companies and principle allows of This of directly our providing production trace invest partnerships of labels leading and of processing peace the We origin and sourcing to consumers mind and Our insist the have with place us on goods. and deep to the private factories. with from adhere products.

and cities join have experience witnessing the lending, with some exploring invited the virtual us in mainly authentic public birth to manufacturing managers sharing flow, of Yunji and we resume As their community. service

Hangzhou, label display private we incubate a a brand hope center and products. mature therefore, Furthermore, to our partner establishing private a are new label attract hub it's capabilities. And products. label to in quite more a We setting brands as to joint more

publicity to intensity our of top more offline And education and the of going of We on take through middle-level customers we those customers. are our are the to going existing customers advertising products, influencers to our platforms. based the media advantages make by and from the

city, From to the them to city going joint to the promotion do label we're task the of products.

mainly the and influencers will your media. the we questions. And channels online for also for mid-level the publicity, our self-made content the channels, existing and four off-line Thank online and use you so

Operator

management for are there this back the time, at further I'd As to conference hand the remarks. like no to questions closing

Kaye Liu

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

Operator

now may Thank disconnect. for concluded. and presentation, has today's you conference now attending The you

Yunji (YJ) 2 Jun 232023 Q1 Earnings call transcript