YJ 云集 2022年第4季度财报电话会议文字稿中英文

Operator

女士们、先生们，早上好，晚上好。感谢各位的耐心等待，欢迎参加云集2022年第四季度财报电话会议。今天出席会议的有：云集董事长兼首席执行官肖尚略先生；财务副总裁张成奇先生；以及公司投资者关系总监刘凯女士。提醒一下，本次电话会议正在录音。现在，我将会议交给今天的第一位发言人，云集投资者关系总监刘凯女士。请开始，女士。

Kaye Liu

大家好，欢迎参加我们2022年第四季度财报电话会议。在开始之前，请注意本次电话会议将包含根据1995年《私人证券诉讼改革法案》定义的前瞻性陈述，这些陈述基于我们当前的预期和当前市场运营状况，涉及云集及其行业的已知或未知风险、不确定性和其他因素。这些前瞻性陈述可以通过诸如'将'、'预期'、'预计'、'继续'或其他类似表述来识别。有关这些风险和不确定性的详细讨论，请参阅我们向美国证券交易委员会提交的相关文件。我们在本次电话会议上做出的任何前瞻性陈述均基于截至今日的假设，并明确完全受限于警示性声明、风险因素以及公司向SEC提交文件中的详细信息。除非适用法律要求，云集不承担更新这些陈述的义务。接下来，我将把会议交给云集董事长兼首席执行官肖尚略先生。

Shanglue Xiao

大家好，欢迎参加云集2022年第四季度财报电话会议。在第四季度，我们成功应对了新冠疫情相关限制措施及其后续放宽带来的挑战。10月和11月，疫情防控对我们的订单量产生了下行压力。随后在12月，随着全国应对新冠病例激增，我们的履约能力受到重大影响。尽管我们观察到更广泛的市场趋于稳定和复苏，但家庭收入和私人消费仍存在一些持续疲软。尽管如此，我们相信优化的成本结构将使我们能够灵活应对市场低迷期。同时，我们增强的能力和业务韧性使我们能够在市场复苏时抓住机遇。凭借这些坚实基础，展望未来，我们保持谨慎乐观。我想总结一下今年充满起伏的经历。2022年，我们持续重申在产品端和营销洞察方面的举措。对于我们的健康护理品牌，我们推出了涵盖体重管理、护肤和身体焕新等领域的多种新品，以满足多样化的消费者需求。我们研发和生产流程的驱动力在于创造高质量、健康天然的产品。我们的努力得到了用户的良好反响，多款新品在单次销售活动中销售额均超过1000万元人民币。云集健康护理的独特心智正逐步形成。转向我们的护肤品牌SUYE。通过更新和重新聚焦内容营销及自有品牌推广举措，我们进一步发展和加强了公域流量品牌建设。利用社交媒体和自有用户社区，我们通过生成引人注目的实用内容来提升用户互动，从而进一步增强用户体验和品牌触达。对于我们的[听不清]产品精选，我们成功推出了升级版的云集精选品质认证体系，这是我们美食云集战略的重要组成部分，主要聚焦于美食品类。严格的认证确保消费者与我们分享的都是最高品质的产品。自近期推出一年以来，我们的平台已积累了广受欢迎的产品系列，用户定期复购。凭借旗舰云集精选认证产品的推动，2022年我们的复购率达到了令人印象深刻的81.8%。让我们更仔细地看看我们的营销努力。我们持续创新和完善垂直社区服务体验。同时，我们推出了额外的增值服务。例如，我们通过为会员提供专业的家居信息和营养建议来增强会员权益，提升他们的忠诚度和满意度。在此基础上，我们将消费者营销工具从图文营销内容升级为短视频格式，实现了高价值内容的指数级增长。通过将这些工具与使分享更加便捷的创新功能相结合，我们创造了更高的品牌曝光度，并使我们的服务经理能够更高效、更精准地推广产品。展望2023年，我们已经在产品和营销两方面进行了广泛的战略规划。在产品方面，我们正见证一个不断演变的消费趋势。越来越多的电商公司正在[听不清]培养消费者购买低价产品的心智。另一方面，消费者普遍变得更加价格敏感，支出更加谨慎，即使他们要求更高质量的产品并获得物有所值的体验。在此背景下，我们相信我们的自有品牌战略提供了一种超越低价的独特消费体验。随着第四季度疫情相关限制的放宽，消费者变得更加注重健康，并相应增加了在健康品类的支出。顺应这些趋势，今年我们专注于探索健康护理和营养疗法品类，以进一步增强我们自有品牌产品的定位。我们迄今为止的努力已取得积极成果，健康护理产品在我们总销售额中的占比有所增加。重要的是，我们的传统产品和全新推出的产品都受到用户欢迎，使我们保持了健康的增长利润。如前所述，消费复苏是一个[听不清]过程。我们看到旅游业反弹最为迅速。在营销渠道方面，我们[听不清]的目标是扩大渠道渗透率并建立更多的人际连接。过去一年，由于单一限制使我们很少能举办线下促销活动。这一点，加上能够参加这些活动的销售经理数量有限，影响了我们的消费者心智和品牌曝光。随着外部形势的恢复，我们已经恢复了线下营销活动计划。例如，2月份，我们在长沙分别举办了一场[听不清]会议。会议期间，我们推出了新产品系列中的商品。我还借此机会与一些在场的服务经理和模特进行了多次一对一的深入交流。目前，我们正在通过开展[听不清]百日线下促销活动进一步激活线下营销。同时，我们将通过开设更多线下门店来吸引公域流量并提升我们自有品牌知名度，消费者可以在这些门店探索和体验我们的产品。我们的服务经理数量现已增长至11万人。我们持续努力改进服务经理的管理，并为他们提供更便捷、更及时的服务。为此，我们正在开发更多便捷的工具和功能，实施提升效率的技术，并增加他们内部获得的支持水平。2023年是转型之年，也是充满机遇的一年。我们将与客户携手同行，帮助他们顺利度过后疫情时代。同时，我们将支持和帮助我们的服务经理在专业零售行业获得新的机遇。接下来，我将把电话会议交给我们的财务副总裁张先生，来介绍财务业绩。

Shanglue Xiao

Hello, everyone. Welcome to Yunji's Fourth Quarter 2022 Earnings Call. During the fourth quarter, we successfully weathered the challenges caused by COVID-related restrictions and the subsequent easing of these measures. In October and November COVID controls exerted a downward pressure on our order volume. Then in December, our water fulfillment capabilities were majorly impacted as the country battled a surge in COVID cases. Although we have observed the size of a broader micro stabilization and recovery, there remains some levering weaknesses in household income and private consumption. Nonetheless, we are confident that our optimized cost structure will enable us to navigate through the market downtime with agility and flexibility. As in time, our enhanced capabilities and business resilience lead us well positioned to seize opportunities when the market recovers. Fortified by these solid foundations, we remain cautious and optimistic as we look to the future. I would like to summarize this year's often ups and downs. During 2022, we continued to reiterate our initiatives on both the product and marketing insights. For our health care brand, we introduced a wide array of fresh offerings covering weight management, skin care and body revitalization only as to rather meet diverse consumer needs. The driving force behind our R&D and production processes with a focus on creating high-quality, healthy and natural products. Our efforts were eternally well received by our users. With several of the new products each generating over RMB 10 million in sales during a single sales event driven by this unique and innovative offerings. This mindset of Yunji Healthcare continues to gradually form. Turning to our skin care brand SUYE. By refreshing and refocusing our content marketing and private label brand promotion initiatives, we further developed and strengthened the brand for public traffic. Leveraging social media and our own user community, we boosted user interaction by generating attention grabbing helpful content thereby further enhancing user experience and our brand's reach. For our [Indiscernible] product selection, we successfully launched our upgraded Yunji selected quality certification system, an integral component of our gourmet Yunji strategy with its main focus on gourmet food category. The stringent certification of share consumers stock with us are all the highest quality. One year of this recent launch, our platform has accumulated a wide range of well-loved products that are regularly repurchased by our users. Powered by indeed the flagship Yunji selected certified products, our repurchase rate reached an impressive 81.8% in 2022. Let's take a closer look at our marketing efforts. We continue to innovate on and refine our vertical community service experience. At the same time, we have launched additional value-added services. For example, we enhanced the members perks by providing them with professional house information and a nutritional advice within their loyalty and satisfaction. Building on these, we upgraded our consumer marketing tool from graphical marketing content to a short video format, generating exponential growth in high value content. By integrating these tools with our innovative features that make sharing more convenient, we create a heightened brand exposure and allow our service managers to promote products more efficiently and accurately. Turning further into 2023, we have already engaged in extensive strategic planning on both the product and the marketing side. On the product side, we are witnessing an involving consumption trend. We are increasing numbers of e-commerce companies, are competing in [Indiscernible] cultivating consumers' mindset of purchasing low-priced products. On the other hand, consumers are generally becoming more price sensitive and spending more cautiously even if they demand higher-quality products and obtain value for money experiences. Against this backdrop, we are confident that our private label strategy delivers a unique consumption experience that goes beyond low prices. Following the easing of COVID-related restrictions in the fourth quarter, consumers became more health conscious and increased their spending in the health category accordingly. In line with these trends, this year, we are focusing on exploring the health care and the nutritional therapy categories to further enhance the statements of our private label products. Our assets to date have a yield positive results with the proportion of our total sales accounted for by health care products increasing. Importantly, both our legacy and newly launched product proved popular with users having us maintain a healthy growth margin. As previously mentioned, the recovery of consumption is [Indiscernible] process. And we have seen the travel sector rebound most rapidly. On the marketing channel side, our goal for [Indiscernible] is to expand channel penetration and build more people-to-people connections. Over the pass of the year as single constraints prevented us from rarely holding off-line promotional events. This, coupled with the limited number of sales managers able to attend these events impacted our consumer mindset and brand exposure. As the external situation has recovered, we have resumed our program of offline marketing events. For example, in February, we separately held a [Indiscernible] meeting in Changsha. During the meeting we -- launched items from our new range of products. I also took the opportunity to have a number of a footfall of one-to-one discussions with some of the service managers and models in attendance. At present, we are further energizing our off-line marketing by running [Indiscernible] 100 days offline promotion campaign. At the same time, we will attract public traffic and boost awareness of our prep label brands by rolling out more offline stores where consumers can explore and enjoy our products. The number of our service managers have now grown to 110,000. We continuously strive to improve the management of our service managers and provide them with more convenient and timely services. As such, we are developing more handy tools and features, implementing efficiency-boosting technology and increasing the level of support they receive internally. 2023 is a year of transition, but also a year full of opportunity. We will be with our customers every step of play to help them smoothly navigate the post-pandemic era. At the same time, we will support and help our service managers to receive fresh opportunities in a specialty retail industry. With that, I will turn the call over to Mr. Zhang, our Vice President of Finance, to go through the financial results.

Chengqi Zhang

谢谢，商略。大家好。在介绍我们的财务业绩之前，请注意以下发言中的所有数字均以人民币计，所有比较和百分比变化均为同比数据，除非另有说明。第四季度我们面临了波动的宏观环境，10月和11月有疫情相关限制措施，12月放松管控后出现疫情传播。在应对疫情的过程中，我们积累了宝贵经验，继续完善产品选择、发展自有品牌、优化产品组合并探索新的商业机会。重要的是，本季度我们的复购率提升至81.8%，毛利率提升至40.9%。同时，我们通过进一步优化成本结构和坚持审慎的成本控制策略来适应宏观环境。得益于这些努力，我们实现了显著的效率提升，运营费用同比下降22%。我们强劲的现金状况和健康的财务状况为业务的进一步发展奠定了基础。现在让我们更详细地看看财务数据。总收入为2.89亿元人民币，去年同期为4.71亿元人民币。商品销售收入为2.41亿元人民币，平台业务收入为4300万元人民币。这一下降主要是由于我们持续优化各品类产品选择、优化供应商和商家选择导致短期销售下降，以及疫情期间消费者信心变化也促成了这一下降。尽管面临这些挑战，我们仍保持了稳定的毛利率，为40.9%，去年同期为39.6%。这是客户对我们自有品牌持续忠诚度和有效产品策展策略的结果。现在让我们看看运营费用。履约费用为3200万元人民币，去年同期为4700万元人民币。这主要是由于商品销售减少导致仓储和物流费用降低。销售和营销费用为5900万元人民币，去年同期为7800万元人民币。这主要是由于人员结构调整导致人员成本减少、会员管理费减少以及平台业务推广费用减少。技术和内容费用为1700万元人民币，去年同期为2600万元人民币。这一下降主要是由于人员结构调整导致人员成本减少以及云服务成本降低。一般及行政费用为4500万元人民币，去年同期为4400万元人民币。第四季度总运营费用从2021年同期的1.96亿元人民币下降至1.53亿元人民币。我们录得运营亏损3300万元人民币，去年同期为运营收入400万元人民币。净亏损为3800万元人民币，去年同期为净利润5800万元人民币，而调整后净亏损为3100万元人民币，去年同期为调整后净利润7100万元人民币。归属于普通股东的基本和稀释每股净亏损均为0.02元人民币，而2021年同期归属于普通股东的基本和稀释每股净收益均为0.03元人民币。接下来看流动性。截至2022年12月31日，我们资产负债表上的现金及现金等价物、受限现金和短期投资总额为6.69亿元人民币，而截至2022年9月30日为5.71亿元人民币。第四季度，我们优化了运营并改善了营运资本现金流。我们的流动资产足以覆盖应付债务，资产负债表上没有任何长期积压订单或债务。展望未来，我们将继续培育自有品牌产品系列，推出更多具有强大复购潜力和客户口碑的新颖产品。在当前宏观挑战下，我们将进一步完善成本结构，同时探索2023年消费复苏带来的新机遇。我们相信，我们富有韧性的商业模式和创新战略将为股东创造长期价值。今天的准备发言到此结束。主持人，我们现在可以开始问答环节了。

Chengqi Zhang

Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms and all comparisons and percentage changes are on year-over-year basis, unless otherwise noted. We faced a volatile macro environment during the fourth quarter with pandemic-related restrictions in October and November and COVID spread following the relaxation in December. Navigating through the pandemic, we gained valuable experience as we continue to refine our product selections, develop our private labels, optimize our product mix and explore new business opportunities. Importantly, our repeat purchase rate increased to 81.8%, and our gross margin increased to 40.9% during the quarter. At the same time, we adapted to the macro environment by further optimizing our cost structures and adhering to our prudent cost control strategy. Thanks to these efforts, we delivered significant efficiency improvements with our operating expenses decreased by -- decreasing by 22% year-over-year. Our strong cash position and healthy financial condition provides the foundation for the further development of our business. Now let's take a closer look at our financials. Total revenues were RMB 289 million compared to RMB 471 million a year ago. Revenues from sales of merchandise was RMB 241 million, and revenues from our marketplace business were RMB 43 million. This decrease was primarily due to our continued strategy of refining our product selections across all categories and optimizing our selection of suppliers and merchants causing near-term decrease in sales, changes in consumers' consumption confidence that have during the COVID-19 pandemic also contributed to the decrease. Despite these challenges, we maintained a stable gross margin at 40.9% compared to 39.6% a year ago. This was a result of sustained customer loyalty to our private labels and the effective product curation strategy. Now let's take a look at our operating expenses. Fulfillment expenses were RMB 32 million compared to RMB 47 million a year ago. This was primarily due to reduced warehousing and logistics expenses due to lower merchandise sales. Sales and marketing expenses were RMB 59 million compared to RMB 78 million a year ago. This was mainly due to the reduction in personnel costs as a result of staffing structure requirements, a decrease in member management fees and a decrease in marketplace business platform promotion expenses. Technology and content expenses were RMB 17 million compared to RMB 26 million a year ago. The decrease was mainly due to the reduction in personnel costs as a result of staffing structure assignments and reduced cloud service costs. General and administrative expenses were RMB 45 million compared to RMB 44 million a year ago. Total operating expenses in the fourth quarter decreased to RMB 153 million from and RMB 196 million in the same period of 2021. We recorded a loss from operations of RMB 33 million compared to income from operations of RMB 4 million a year ago. Net loss was RMB 38 million compared with net income of RMB 58 million a year ago, while our adjusted net loss was RMB 31 million compared with adjusted net income of RMB 71 million a year ago. Basic and diluted net loss per share attributable to ordinary shareholders were both RMB 0.02 compared with basic and diluted net earnings per share attributable to ordinary shareholders of RMB 0.03 in the same period of 2021. Moving on to liquidity. As of December 31, 2022, we had a total of RMB 669 million in cash and cash equivalents, restricted cash and short-term investments on our balance sheet compared to RMB 571 million as of September 30, 2022. During the fourth quarter, we refined our operations and optimized our working capital cash flow. Our liquid assets were sufficient to cover our payable obligations, and we did not hold any long-term backlogs or debts on our balance sheet. Looking ahead, we will continue to cultivate our range of private label products and introduce more novel offerings with strong repurchase potential and customer peer. As we navigate through the current macro challenges, we will further refine our cost structure while exploring new opportunities driven by consumption recovery in 2023. We are confident that our resilient business model and the innovative strategies will deliver long-term value to our shareholders. This concludes our prepared remarks for today. Operator, we are now ready to take questions.

Operator

[操作员指令] 今天我们的第一个问题来自First Trust中国的[Ethan Yee]。

Unidentified Analyst

我们看到市场上有几家竞争对手开始进行补贴活动。我想了解一下您对此的看法？未来您是否会考虑像京东和[听不清]那样参与百亿补贴活动？

Kaye Liu

抱歉，让我快速翻译一下这个问题。[外语]

Shanglue Xiao

首先，消费者购买力仍在缓慢恢复中，百亿补贴计划确实能为消费者带来实实在在的好处。我们承认补贴对消费市场的价值，特别是在一些标准产品类别如手机、电子产品以及一些冲动消费中。当然，价格是消费决策中非常重要的因素。但对产品质量、客户服务和产品特性的需求仍然非常重要且强烈。我们不认同盲目[听不清]价格的做法。我们的目标是在消费者心中建立这样的认知：我们的产品不仅价格实惠，而且具有独特性和高品质。与其提供客户补贴，我们更专注于提供增值服务并保持产品质量，让客户觉得他们的购买物有所值。实际上，我们认为政府的举措更为重要，即从高速发展向高质量发展转型。我们在健康食品、美妆和美食类别拥有多种自有品牌，并辅以专业垂直委员会提供一站式购物和营销服务。这使我们能够严格控制成本，并在产品质量、定价和服务方面具备强大的运营能力。我们为用户提供高价值体验，而不依赖百亿补贴。感谢您的问题。

Operator

女士们、先生们，我们的问答环节到此结束。现在请将会议交还给管理层进行结束语。

Kaye Liu

感谢大家今天的参与。如果您有任何进一步的问题，请随时联系我们，我们期待下个季度与您再次交流。再见。

Operator

今天的电话会议到此结束。您现在可以断开线路，祝您有美好的一天。