YJ - Earnings call 3 2023

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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 2023 Earnings Conference Call.

With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Yeqing Cui, Senior Financial Director; 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 third everyone. XXXX Hello, to

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

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

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

Shanglue Xiao

[Interpreted] Hello, everyone. XXXX Yunji's Third Call. Welcome to Earnings Quarter

strategically chain our and structure advancing business traditionally focused initiatives season of our marketing e-commerce. of and market fine-tuning opportunity for develop product We product the is further the We products, our accelerate development offering fronts. number offpeak on optimizing quarter our an this third positioning, supply of new and strengthen and continue capabilities. both including adjusting The to a foundation to took

quarter. unveil up ramped fourth the products, laying sales and for new addition, events In regions in our our marketing the promotional highlight groundwork host product to and we

allowing enhanced relocated presentation product September, during with to showcase our a building office areas, our us display effectively Notably, to to private brands new and private more partners. label label team our

users conducted evaluation reflect and our This firmly the private to to we generate managers our Both that brand rates. and development, products repeat has deliver strategic within value market on operating firmly image offering ongoing can promoted that competitive a our believe sustainable higher We our way high-quality trend to purchase Yunji's our market strengthen and users. service value remain revenues our we positioning. how positive maintained for priced commitments paving us a enhance growth. will of by comprehensive We outstanding have these higher committed competitively label we landscape. consistently the brands deliver Guided Yunji

creative [indiscernible] in over Shopping promotions major approach different We of try aggressive by the time e-commerce a and using expanded approaches. month a this Festival During over variety course a to a discounting chose their opting course, platforms promotional for a straightforward frame. of year, engaged more shorter

our base, For strategic example, installment attracted coordinate marketing with users offers. more and leveraging users and multi-item our efficiently platform. by us engaged join we to our to direct product This focus and discounts back effectively them precisely enable successfully

During and purchases. capitalize chain we to our our strategic call, growing consumers' previous appetite for initiatives enhance our on earnings outlined supply seasonal

the results food yielded approach Our has impressive in particularly category.

for For emerged the Holiday. have craft example, go-to Festival end gift by as the Day boxes National our craft August, and and vouchers of Mid-Autumn choices gifting

dairy Importantly, of generated stable we spending. significant levels sales successfully promotional have without

revenue over XX just of out of span in cards we million. RMB the assets -- generating sold XXX,XXX we In month, X sold

I'd brands. like some to Now label updates on share Yunji's private

beauty and This category and as to up focus us unique collaboration, create strong on a focus, dual area. While our to explore allowing exciting core highly beauty emerged remains opens healthcare health has secondary differentiated opportunities products.

lead evolving users. category, [indiscernible] strong to brands, valuation care launch launched has the within as popularity brand a DTC both preferences more health beauty medicine lead selling of despite culture. align in was reestablished example, and on beauty has proved bonds our round on out cross-category date. introduce and a across hour success the products bond following flowing brand, devoid a to the garnered its a lead of instant with their our our building ingredient traditional that be demand a popular to the a within Chinese of The cross-category herbal its and for resurgence [indiscernible] sales. skin [indiscernible] health For intend potential heat, of demonstrating collaboration to and community such cater facemask an an We've September, the for launch, of bond further groups the

Finally, their critical because I'd choose offer strike of service a success, our They to to and lives. balance between professional turn managers. we component our opportunity dedicated unique like a a family Yunji to

in brands for often sales time then freeing to spend allows to empower innovative frame, generate and manager lives, Our This build their self-improvement hour. an to a medicated rapidly sales to and with strategy time within up return products them personal short or their service families.

development, personal growth continue learning to we the prioritize of continuous our service and of terms managers. In

quarter. diverse the a As only more refine to but and create education skills helping broader the a ultimately sales more commitment, family this interest, force thinking This also cultivate launched part and initiative will life. training of program their fulfilling we new third in not

will Senior the to With financial Cui, our that, over Financial Mr. go turn I to through call Director results. the

Yeqing Cui

Thank you, Hello, Shanglue. everyone.

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

off relatively and growth growth. of third have During effort strategy our reinforce our this private development, opportunity XXXX, product stock operational a sales Key as projects. enhancement of now remained that practice. comprehensive to inventory label quarter we and to core stable covers been robust our operations use has the of scheduling management the We the our management in

believe flow. monthly or same our level. constantly At management inventory We growth new tangible ensure on optimal dynamic been product of an strategic effectively a time, our optimizing shifting market. business a different cash for laid focus this at [indiscernible] cash inventory and in keeps within monitor actively development foundation the The managing a we approach to use on has a solid assets weekly

was product close the categories. across of by Now The look financials. year at let's our take XX a XXX million changes our revenues XXX XXX all and were revenue were Total marketplace Revenues a were primarily RMB sales RMB range RMB to our ongoing million. to compared from million million refinements from driven business RMB ago. merchandise

private in the Despite these to sales. solid the our impact resulted This and strategy. effective merger coupled loyalty on towards due curation was optimization gross This a with short-term supplier of customer our product remained our challenges, relatively margin and XX.X%. labels our sustained network at

was Now a let's RMB This a year costs to and structure ago. from compared a warehousing XX merchandise look staffing driven due take stemming decrease our XX RMB to optimization. lower operating at million expense personnel and in reduced million by Procurement expense. expense primarily sales were logistics

decrease mainly million structure compared technology The in were to costs a management reduction ago. resulting Sales from to result RMB and business was a compared million expense, primarily decreased marketing a due optimization. ago, RMB decline expense expense were a million XX RMB a personnel and was XX XX promotion year and in the million fee content year to of staffing XX this RMB

from RMB while compared to This to XX XX XX decline RMB quarter in net XXX year XX to compensation million was of XXXX. RMB a Loss XX RMB expense was ago million compared decreased General due million operating with XX RMB XX a loss from RMB a the expense compared expense. loss and RMB XX in administrative ago. the million million period compared were operations Net to mainly million were year a year a million to year million RMB RMB in ago. same XX RMB share-based Total third million million adjusted was ago.

diluted net same X.XX period X.XX XXXX. per and attributable shareholders with RMB in compared both of Basic share the were RMB to ordinary loss

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

quote and not loans to our sheet. liquid payable on Our bank balance assets or do our debtors obligations, were cover sufficient long-term any we

aim will explore proactively opportunities to continue we supply investment our the enhance chain ahead, to with Looking capabilities.

To summarize, the this were during effective our growth diligent long-term steps enhance our achieving process. strategy to we our quarter, to to sustainable took management mechanism asset management decision to approach third and our integral efforts crucial towards inventory and priority

today. challenges to we and to economic This adaptable. forward, positions remarks Operator, drive the navigate take remains concludes company us effectively meet landscape. opportunities will ever-changing questions. ensuring resilient and continue This we ongoing now our prepared our for seize we that improvements, are to Going approach as ready the future effective

Operator

from [Operator Ethan Yu Instructions] First comes The first Trust. with question today

Ethan Yu

next and Health more Could you Language] [Foreign the . positioning plans color for the shed our business on segment. specific

Shanglue Xiao

family Thank going and XX and XXX for And [Interpreted] is you XX the have years, members well-being secondary the on children. later and and we know XX is A particularly your of million key guardian years. to for Chinese the people as later in strategy XX% our to their to Yunji old that as which of we you focus of consumers in XX this Yunji's of are question. curve. the key it women, XX them both And group XX% the forward-looking years among above. can China, Health characteristic our over mothers. are elderly of take health, are a primary

lack we seats. we Similarly, the online lack different the health in with supermarkets. car SUV and Actually, XX we the but industry, we supermarket. of in and health models do the years in lack But China, next in lack X do China's not China's not off-line SUV, the industry,

and health the products primary the on functional Health to health also categories focused again food, gathers family it health or scenarios like a needs and those to a Club the of household including from members. domain, meet for Yunji those various on food healthy with Sam's health diverse likened personalized different be food and can brands emphasis

like cleanliness. lifestyle protection, for comprehensive sun for question. aspires Yunji associate [indiscernible] dietary all to health care While many encompassing with health be for Thank the your hair we skincare, and of a you choices, a life. advocate healthy aspects access

Operator

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

Kaye Liu

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

Operator

you concluded. now Thank for has attending presentation. conference today's The

now You disconnect. may

[Interpreted] on transcript were marked of an [Portions this present interpreter are call.] spoken live that by the

Yunji (YJ) 14 Dec 232023 Q3 Earnings call transcript