GigaCloud Technology Inc (GCT) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the GigaCloud Technology's First Quarter 2023 Earnings Conference Call. (Operator Instructions) Joining us today from GigaCloud Technology are the company's Founder, Chairman of the Board and Chief Executive Officer, Larry Wu, the company's Chief Financial Officer, David Lau; and the company's President, Dr. Iman Schrock. On today's call, Larry will give an overview of the company's performance, Iman will provide details of the company's operational results, and David will share the company's financial results. After that, we will conduct a question-and-answer session.

女士們先生們，謝謝你們的支持。歡迎參加GigaCloud Technology 2023年第一季財報電話會議。 （操作員須知）今天與我們一起出席的有GigaCloud Technology的創始人、董事長兼首席執行官Larry Wu，公司的首席財務官David Lau；以及公司總裁 Iman Schrock 博士。在今天的電話會議上，拉里將概述公司的業績，伊曼將提供公司營運業績的詳細信息，大衛將分享公司的財務業績。之後，我們將進行問答環節。

As a reminder, this conference call contains statements about future events and expectations, which are forward-looking in nature. Statements on this call may be deemed as forward-looking and actual results may differ materially. Today's call and webcast will include non-GAAP financial measures within the meaning of SEC Regulation G. When required, reconciliation of all non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in today's press release as well as the company website. With that, I would now turn the call over to Larry, the company's Founder, Chairman of the Board and Chief Executive Officer. Larry, please go ahead.

提醒一下，本次電話會議包含有關未來事件和期望的聲明，這些聲明本質上是前瞻性的。本次電話會議的聲明可能被視為前瞻性的，實際結果可能有重大差異。今天的電話會議和網路廣播將包括SEC G 條例含義內的非GAAP 財務指標。媒體上找到發布以及公司網站。現在，我將把電話轉給公司創辦人、董事會主席兼執行長拉里 (Larry)。拉里，請繼續。

Thank you, operator, and thanks to everyone for joining GigaCloud's First Quarter of 2023 Earnings Conference Call today. First and foremost, I want to express my pride in the entire GigaCloud family for yet another remarkable quarter where we continued to revolutionize the industry with our innovative business model and state-of-the-art technology. We achieved our most profitable quarter ever with $15.9 million in net income, a 27.8% quarter-over-quarter increase and an impressive [236.4%](corrected by company after the call) increase year-over-year. And $19.8 million in adjusted EBITDA, which represents a 30.7% quarter-over-quarter increase above our fourth quarter results last year. We also witnessed encouraging revenue growth that exceeded the upper end of our projected outlook, which came in at $127.8 million for Q1 versus an outlook range of $123 million to $127 million for the quarter. We are confident of the outcomes from our ongoing improvements, further strengthening our position as market leader. I would like to thank the entire GigaCloud team for their tireless work as well as all stakeholders for their continued support for the company.

謝謝業者，也謝謝大家今天參加 GigaCloud 2023 年第一季財報電話會議。首先也是最重要的，我想對整個 GigaCloud 家族表示自豪，在這個季度中，我們繼續透過創新的業務模式和最先進的技術徹底改變產業。我們實現了有史以來利潤最高的季度，淨利潤為 1590 萬美元，環比增長 27.8%，同比增長令人印象深刻 [236.4%]（由公司在電話會議後修正）。調整後 EBITDA 為 1,980 萬美元，比去年第四季的業績環比成長 30.7%。我們也見證了令人鼓舞的營收成長，超過了我們預期前景的上限，第一季的營收為 1.278 億美元，而本季的預期範圍為 1.23 億美元至 1.27 億美元。我們對持續改善的成果充滿信心，進一步鞏固了我們作為市場領導者的地位。我要感謝整個GigaCloud團隊的不懈努力以及所有利害關係人對公司的持續支持。

Now I would like to turn the call over to Iman to go over some of the operational highlights from this quarter.

現在我想將電話轉給伊曼，回顧本季的一些營運亮點。

Thank you, Larry, and good morning, everyone. As Larry mentioned, we are pleased with our start to the year, including our record quarterly profit which was driven largely by a widespread decline in ocean shipping rates and a corresponding increase in gross profit. Our gross margin was 23.1% for the first quarter up a full 54% year-over-year. We believe that this moderation in ocean shipping rates should remain in place for at least the foreseeable future and expect our second quarter results to also benefit from this tailwind.

謝謝拉里，大家早安。正如拉里所提到的，我們對今年的開局感到滿意，包括創紀錄的季度利潤，這主要是由於海運費率普遍下降和毛利相應增加所致。第一季毛利率為 23.1%，較去年同期成長整整 54%。我們認為，至少在可預見的未來，海運價格的放緩應該會持續下去，並預計我們第二季的業績也將受益於此順風車。

Now let's walk through some of the operational results. In the first quarter ended March 31, our GigaCloud Marketplace GMV grew 26.3% year-over-year to $553.5 million. The platform saw a 46.8% year-over-year increase in active 3P sellers ending the quarter at 602 and as Larry just mentioned, we saw a 12.5% year-over-year rise in active buyers to end the quarter at 4,255 with spend per active buyer also increasing by 12.3% year-over-year to $130,083 in the 12 months ended March 31, 2023. Further, 3P seller GigaCloud Marketplace GMV grew 62.2% year-over-year to $285.2 million, representing 51.5% of the total GigaCloud Marketplace GMV for the 12 months ended March 31.

現在讓我們來看看一些運行結果。截至 3 月 31 日的第一季度，我們的 GigaCloud Marketplace GMV 年比成長 26.3% 至 5.535 億美元。該平台的活躍 3P 賣家數量同比增長 46.8%，本季度末達到 602 名，正如 Larry 剛才提到的，我們看到活躍買家同比增長 12.5%，本季度末達到 4,255 名，每人支出截至2023 年3 月31 日的12 個月內，活躍買家也較去年同期成長12.3%，達到13 萬美元。日的12 個月市場GMV。

As I mentioned on our last call, in the fourth quarter, our GigaCloud 3P seller GMV surpassed our 1P GMV as a percentage of total marketplace GMV, and that trend continued into the first quarter. While our 1P approach remains an integral part of our business strategy, ultimately, we believe that the growth of our 3P GMV will be very important to the scaling of our business and we see positive momentum in our 3P growth rate continuing to drive a larger and more productive marketplace. We remain focused on building the best B2B marketplace in the world for buyers and sellers to come together and grow their respective businesses by improving our effectiveness and increasing the efficiency of our ecosystem. The success of our customers is ultimately the success of our own business. We believe that we are well positioned to capitalize on this growing opportunity going forward. Our first quarter results were very encouraging and evidence that our ongoing investments in the platform continue to provide positive, profitable results from our balanced growth strategy.

正如我在上次電話會議中提到的，在第四季度，我們的 GigaCloud 3P 賣家 GMV 在總市場 GMV 中所佔的百分比超過了我們的 1P GMV，並且這種趨勢持續到第一季。雖然我們的1P 方法仍然是我們業務策略不可或缺的一部分，但最終，我們相信3P GMV 的成長對於我們業務的擴展非常重要，我們看到3P 成長率的積極勢頭繼續推動更大和更廣泛的業務成長。我們仍然致力於打造世界上最好的 B2B 市場，讓買家和賣家能夠透過提高我們的效率和生態系統的效率來共同發展各自的業務。客戶的成功最終就是我們自己業務的成功。我們相信，我們已做好充分準備，能夠充分利用這一不斷增長的機會。我們第一季的表現非常令人鼓舞，並證明我們對該平台的持續投資持續為我們的平衡成長策略帶來正面的獲利結果。

Now I would like to turn the call over to our CFO, David for a closer [review of](corrected by company after the call) our financial results.

現在我想將電話轉給我們的財務長 David，以便更仔細地[審查]（電話後由公司更正）我們的財務表現。

Thank you, Larry and Iman, and good morning, everyone. I'm pleased to share our outstanding financial results for the first quarter 2023. The company generated $127.8 million in first quarter 2023, which represents a 13.7% growth from $112.4 million in the year prior [period]. And as Larry mentioned, it was above the high end of our outlook range for the quarter which was between $123 million and $127 million. Our gross profit was $29.6 million, an increase of 75.3% year-over-year and resulting in gross margin of 23.1% for the first quarter compared to gross margin in the year prior [period] of 15%. This improvement was largely the result of improved ocean shipping rates which [also helped] contribute to increased 3P seller activity [who typically bear the cost of shipping](added by company after the call) as well as improving our overall margin for our [product sales](corrected by company after the call).

謝謝拉里和伊曼，大家早安。我很高興與大家分享我們 2023 年第一季的出色財務業績。正如 Larry 所提到的，它高於我們本季預期範圍的上限（1.23 億美元至 1.27 億美元）。我們的毛利為 2,960 萬美元，年增 75.3%，第一季毛利率為 23.1%，而去年同期毛利率為 15%。這項改善主要是由於海運費率的提高，這[也有助於]促進3P賣家活動的增加[他們通常承擔運費]（由公司在通話後添加）以及提高我們[產品的整體利潤率]銷售] （電話後由公司更正）。

Our supplier fulfilled retailing model provides end-to-end logistics services to our customers and as ocean shipping rates had declined steadily over the last year. [Therefore, we recognize a smaller revenue stream](added by company after the call) from ocean shipping accounts for a smaller percentage of total revenue in first quarter of 2023 that led to [modest year of year revenue growth](corrected by company after the call). On the bottom line, we generated $15.9 million in net income in the first quarter, representing an increase of 236.4% from $4.7 million in the year prior [period]. Adjusted EBITDA was $19.8 million in the first quarter, representing an increase of 186.5% from $6.9 million in the first quarter of 2022. We're also incredibly pleased to announce that this was our most profitable quarter in the history of GigaCloud so far. Importantly, we generated $20.3 million in operating cash flow in the first quarter of 2023 compared to $14.5 million in net cash [used](corrected by company after the call) in operating activities in the first quarter of 2022. This results in a $164.2 million in cash balance at the end of the first quarter further enhancing our balance sheet and positioning the company well for additional investments into our platform or any potential M&A activity that may align with our business strategy.

我們的供應商履行零售模式為我們的客戶提供端到端的物流服務，因為去年海運費率穩定下降。 [因此，我們認識到，2023 年第一季來自海運的收入來源較小]（由公司在電話會議後添加）佔總收入的比例較小，導致[年度收入增長適度]（由公司在電話會議後修正）的電話）。總而言之，我們第一季的淨利潤為 1,590 萬美元，比去年同期的 470 萬美元成長了 236.4%。第一季調整後 EBITDA 為 1,980 萬美元，比 2022 年第一季的 690 萬美元成長 186.5%。重要的是，我們在2023 年第一季產生了2,030 萬美元的營運現金流，而2022 年第一季營運活動中的淨現金[已使用]（由公司在電話會議後更正）為1,450 萬美元。潛在併購活動。

Additionally, we have a $50 million revolving credit facility with Wells Fargo Bank that can be drawn upon should we need to fund any additional expansion or investment. As Iman alluded, our GigaCloud Marketplace is rapidly shifting to becoming a 3P seller-dominated platform, which we believe is the result of the investment into the platform for our buyers and sellers as well as the continued adoption of our supplier fulfilled retailing model. Our operating expenses rose slightly on both a dollar and percentage of total revenue basis, which finished the quarter at $11.7 million or 9.2% of total revenue versus $9.4 million or 8.4% of total revenue the year prior [period](added by company after the call). The increase was due to a higher research and development expense as we continue to invest in our platform, which was slightly offset by lower sales and marketing and general and administrative expenses. Finally, for the second quarter of 2023, we expect the company to generate between $140 million and $145 million in revenue. And with that, operator, I would like to open the line for any questions. Thank you.

此外，我們還與富國銀行簽訂了 5,000 萬美元的循環信貸額度，如果我們需要為任何額外的擴張或投資提供資金，可以使用該額度。正如 Iman 所提到的，我們的 GigaCloud 市場正在迅速轉變為 3P 賣家主導的平台，我們相信這是買家和賣家對該平台進行投資以及持續採用供應商履行的零售模式的結果。我們的營運費用在美元和佔總收入的百分比上均略有上升，本季末為1,170 萬美元，佔總收入的9.2%，而上年[期間]為940 萬美元，佔總收入的8.4% （由公司在稱呼）。這一增長是由於我們繼續投資於我們的平台而導致研發費用增加，但銷售和行銷以及一般和管理費用的減少略有抵消。最後，我們預計該公司 2023 年第二季的營收將在 1.4 億至 1.45 億美元之間。接線員，如果有任何問題，我願意撥打電話。謝謝。

(Operator Instructions) And the question comes from the line of [Oscar Tracey], who is a private investor.

（操作員說明）這個問題來自[Oscar Tracey]，他是一位私人投資者。

Congratulations on your outstanding performance in the first quarter. I have 2 questions to follow up on. First of all, it is really impressive to see that your revenue, your gross profit, net income and adjusted EBITDA all show really significant increases in the first quarter. So what are the main drivers? And do you expect this trend to continue in the upcoming quarters?

恭喜你們第一季的出色表現。我有 2 個問題需要跟進。首先，令人印象深刻的是，您的收入、毛利、淨利潤和調整後的 EBITDA 在第一季都顯示出真正的顯著成長。那麼主要驅動力是什麼？您預計這種趨勢在未來幾季會持續下去嗎？

Yes. Thank you very much. Very good question.

是的。非常感謝。非常好的問題。

Overall ocean shipping rate is starting to normalize to pre-pandemic level. When ocean shipping rate is at the current level, our 3P seller is more active in sending products to our warehouse, which in turn drives more activity on our platform that leads to overall growth in user count, user spend and GMV. So on the other hand, in a declining ocean shipping rate environment will naturally present, say, a margin expansion opportunity for our 1P business because the ocean shipping rate itself is a part of our product cost. I think more importantly is aside from ocean shipping rates, our supplier fulfilled retailing is offering a very unique solution to traditional retailers to reduce costs and help them to effectively and efficiently manage the entire supply chain from the manufacturing source all the way to the end consumer. So I think this is a very strong testament of the value that we offer to the market and I think the market is starting to realize the unique opportunity that's presented on the table here.

整體海運率開始正常化至大流行前的水平。當海運費率處於當前水平時，我們的3P 賣家會更積極地將產品發送到我們的倉庫，這反過來又會推動我們平台上的更多活動，從而導致用戶數量、用戶支出和GMV 的整體增長。因此，另一方面，在海運費率下降的環境下，自然會為我們的 1P 業務帶來利潤擴張的機會，因為海運費率本身就是我們產品成本的一部分。我認為更重要的是除了海運費率之外，我們的供應商履行零售為傳統零售商提供了一個非常獨特的解決方案，以降低成本並幫助他們有效和高效地管理從製造源一直到最終消費者的整個供應鏈。因此，我認為這有力地證明了我們為市場提供的價值，我認為市場正在開始意識到這裡提出的獨特機會。

And I have my second question is that I also want to know what the key components of GigaCloud business plan for the remaining 2023. Are there any specific initiatives or strategies the company will focus on to drive the growth and the value?

我的第二個問題是，我還想知道 GigaCloud 在剩下的 2023 年業務計劃的關鍵組成部分是什麼。

Iman, you want to take that one?

伊曼，你想拿那個嗎？

Yes, but I'm not sure I understood the question. Could you please recite that question one more time?

是的，但我不確定我是否理解了這個問題。你能再重複一次這個問題嗎？

Sure. I would like to know like what will be any specific initiatives or strategies for the company to conduct for the remaining 2023 to drive the growth and the value?

當然。我想知道公司在剩下的2023年將採取哪些具體措施或策略來推動成長和價值？

Sure. So our ecosystem is currently connecting thousands and thousands of participantson a recurring daily business through a multifaceted software that is giving visibility, as David mentioned, to their entire supply chain, end-to-end logistics, inventory management and also acting as a payment gateway. Going forward, we do have a few R&D projects in the mix that are going to help us make the system even more efficient. And also, we're exploring the possibility of a potential M&A to help us improve those capabilities to expand our service offerings to the marketplace participants. But without a doubt, a huge focus will also be placed on recruiting new sellers and expanding the availability of existing products through 1P on the marketplace. So that you can supplement the recruitment of buyers, so we can maintain and continue to grow it.

當然。因此，我們的生態系統目前正在透過多方面的軟體將成千上萬的參與者連接到日常業務中，正如大衛所提到的那樣，該軟體可以提供整個供應鏈、端到端物流、庫存管理的可見性，並充當支付網關。展望未來，我們確實有一些研發項目將幫助我們提高系統效率。此外，我們正在探索潛在併購的可能性，以幫助我們提高這些能力，從而向市場參與者擴展我們的服務產品。但毫無疑問，重點也將放在招募新賣家並透過市場上的 1P 擴大現有產品的可用性。這樣你就可以補充買家的招募，這樣我們就可以維持並繼續發展它。

Your next question comes from the line of [Eva Moore], who is a private investor.

你的下一個問題來自[伊娃摩爾]，她是一位私人投資者。

I have 2 questions today. The first one is company had over $160 million cash on March 31, 2023, what are your plans for utilizing this capital in the next 20 months -- 12 months?

我今天有 2 個問題。第一個是公司在 2023 年 3 月 31 日擁有超過 1.6 億美元現金，您在未來 20 個月（12 個月）內計劃如何利用這筆資金？

Sure. We're always evaluating projects and alternatives where we're going to deploy cash to increase value for our customers and shareholders. We're constantly opportunistically evaluating potential inorganic growth targets that aligns with our business strategy. We have a very healthy balance sheet position today that's going to allow us to grow and expand multiple areas to capture market opportunities. So as long as we find a project that makes sense that's going to add value to us, we're always ready to deploy our cash to make it work.

當然。我們一直在評估項目和替代方案，我們將在這些項目和替代方案中部署現金，為我們的客戶和股東增加價值。我們不斷機會主義地評估與我們的業務策略一致的潛在無機成長目標。今天，我們的資產負債表狀況非常健康，這將使我們能夠發展和擴展多個領域，以抓住市場機會。因此，只要我們找到一個有意義的項目，能夠為我們增加價值，我們就隨時準備好部署我們的現金以使其發揮作用。

And the second one is, I saw operational highlights and the significant growth in some GMV, active 3P sellers, active buyers and spend more per active buyer. How do you plan to maintain this growth and continue attracting more sellers and buyers through our platform?

第二個是，我看到了營運亮​​點以及一些 GMV、活躍 3P 賣家、活躍買家以及每個活躍買家支出更多的顯著成長。您計劃如何保持這種成長並繼續透過我們的平台吸引更多賣家和買家？

So as far as recruiting sellers and buyers, that focus remains the same. Our focus will always remain on inviting more and more sellers into the platform, allowing them to take advantage of the software and hardware that we're just enabling them with to make trades and in turn, make the product more available for the participants on the other end, which would be the buyers transacting. And as I alluded to earlier in answering the previous question, increasing the recruitment of 3P sellers will remain a huge focus for us. So increasing the SKU density using our 1P to make product availability more. And that, in return, would result in us recruiting more active buyers. In addition, we want to continue to educate the market about the benefits of our very unique, yet super effective business model, what we call supplier fulfilled retailing that helps improve the efficiency across the board, lower the risk for the entire system and make the process more transparent and less prone to damages and waste of resources. And in addition to all of those, there is a huge focus within our organization on IT and engineering and improving algorithms and machine learning, and that is going to continue because that is the path forward as we are revolutionizing the wholesale end of the big and bulky market.

因此，就招募賣家和買家而言，重點仍然是一樣的。我們的重點始終是邀請越來越多的賣家進入平台，讓他們能夠利用我們剛剛讓他們能夠進行交易的軟體和硬件，進而使產品更容易為參與者提供。 。正如我之前在回答上一個問題時提到的，增加 3P 賣家的招募仍將是我們的一個重點。因此，使用我們的 1P 來增加 SKU 密度，以提高產品可用性。作為回報，我們會招募到更活躍的買家。此外，我們希望繼續向市場宣傳我們非常獨特但超級有效的商業模式的好處，我們稱之為供應商履行零售，有助於全面提高效率，降低整個系統的風險，並使過程更加透明，不易發生損壞和資源浪費。除了所有這些之外，我們的組織內部還非常關注 IT 和工程以及改進演算法和機器學習，這種情況將持續下去，因為這是我們正在徹底改變大數據和機器學習的批發端的前進道路。市場。

Your next question comes from the line of Rommel Dionisio from Aegis Capital.

您的下一個問題來自 Aegis Capital 的 Rommel Dionisio。

I know service revenue from 3P has definitely been a focus area for your growth. I mean you had strong last-mile delivery growth service revenue, strong growth in warehouse services. But I noticed there was a drop in ocean transportation services, about 78%. Now I know, obviously, you -- ocean freight costs have come down and prices have come down, but it just seems like a big drop. Was there something else unusual happening there or -- I just wanted to clarify that.

我知道 3P 的服務收入絕對是你們成長的重點領域。我的意思是，最後一哩配送服務收入強勁成長，倉儲服務也強勁成長。但我注意到海運服務下降了約 78%。現在我知道，顯然，海運成本已經下降，價格也下降了，但似乎下降幅度很大。那裡是否發生了其他不尋常的事情，或者——我只是想澄清這一點。

Yes. No problem, Rommel. No, I think you hit the nail on the head. It's because the ocean shipping rates has come down drastically from where it was from a year ago. We provide end-to-end logistics for our customers so when ocean shipping rates are high, we recognize that as part of revenue. When it normalizes, that part of the revenue as a percentage of our total revenue becomes much smaller. So it's because of macro cost factor that caused our revenue mix shift quite drastically from where it was from a year ago. So your understanding is absolutely correct.

是的。沒問題，隆美爾。不，我認為你擊中要害了。這是因為海運價格比一年前大幅下降。我們為客戶提供端到端物流，因此當海運費率較高時，我們將其視為收入的一部分。當它正常化時，這部分收入占我們總收入的百分比就會變得很小。因此，正是由於宏觀成本因素，導致我們的收入結構與一年前相比發生了巨大變化。所以你的理解是絕對正確的。

Okay. And just a quick follow-up, if I could. The -- you've seen such strong growth in your 3P seller relationships. I wonder if you could just clarify, has the loyalty, the retention rate still been -- have you managed to maintain that very high rate close to 85%, 90% that you've had historically?

好的。如果可以的話，請快速跟進。您已經看到 3P 賣家關係的強勁成長。我想知道您能否澄清一下，忠誠度、保留率是否仍然如此——您是否能夠保持歷史上接近 85%、90% 的極高比率？

Yes. So we don't typically disclose this. But yes, it remains very high for us. So that's because of the unique solution that we offer to suppliers in Asia where we provide kind of the end-to-end logistics, payment gateway multiple distribution channels all through one easy-to-use platform.

是的。所以我們通常不會透露這一點。但是，是的，它對我們來說仍然很高。這是因為我們為亞洲供應商提供了獨特的解決方案，我們透過一個易於使用的平台提供端到端物流、支付網關和多個分銷管道。

Okay. Great. Congratulations on the quarter. Great quarter.

好的。偉大的。恭喜本季。很棒的季度。

Thank you.

謝謝。

(Operator Instructions) And the question comes from the line of [Irene Martin], who is a private investor.

（操作員說明）這個問題來自[Irene Martin]，她是一位私人投資者。

My question is, could you please provide updates for your technological upgrades on your platform and how they contribute to the long-term success of your platform?

我的問題是，您能否提供平台上技術升級的最新資訊以及它們如何為您平台的長期成功做出貢獻？

Sure. I'll take this question, David. So a lot of the technological investments this year will be centered around optimizing the buyer and the seller data exchange to streamline the overall efficiency of the marketplace. We're in the B2B sector. So there are recurring transactions and data and machine learning can improve that process and make it more efficient. And with that being said, machine learning and the algorithms are a huge, huge part of what we do because unlike any other company, we optimize the process from end to end. And with that, I alluded to this as well earlier, over 1/4 of our entire workforce is dedicated to IT and engineering, and they're all dedicated -- their daily activity is into making this process as efficient and as effective as possible and our quest to make the cross-border B2B even better.

當然。我來回答這個問題，大衛。因此，今年的大量技術投資將集中在優化買方和賣方數據交換，以簡化市場的整體效率。我們處於 B2B 領域。因此，存在重複的交易和數據，機器學習可以改善流程並使其更有效率。話雖這麼說，機器學習和演算法是我們工作的一個重要組成部分，因為與任何其他公司不同，我們從頭到尾優化流程。就這一點，我之前也提到過，我們整個員工隊伍中超過 1/4 的人致力於 IT 和工程，他們都很專注——他們的日常活動就是使這個流程盡可能高效和有效。於讓跨境B2B 變得更好。

And I also thought of one more question. So about your business outlook. You mentioned that your revenue range for the second quarter of 2023. So what factors or market conditions are influencing this forecast? And what key initiatives or strategies will implement to achieve these revenue targets?

而且我還想到了一個問題。關於您的業務前景。您提到了 2023 年第二季的營收範圍。為實現這些收入目標將實施哪些關鍵措施或策略？

Yes. We took into account a number of factors in arriving our current outlook for Q2 I think under the current economic environment, we see a lot of traditional retailers are struggling from overvalued inventory that's caused by a surge in ocean shipping rate during the pandemic. I think as more and more of our customers are paying closer attention to efficiently manage supply chain and inventory management, this presented us with a very unique opportunity, given our business model can effectively remove some of the inventory risk and associated costs from carrying inventory directly. And then also, as Iman alluded, we got a lot of tailwinds through the normalization of ocean shipping rates. So that's how we arrived in our outlook for second quarter of 2023.

是的。我們在得出當前第二季度的前景時考慮了多種因素，我認為在當前的經濟環境下，我們看到許多傳統零售商正因疫情期間海運價格飆升而導致庫存估值過高而苦苦掙扎。我認為，隨著越來越多的客戶更專注於高效管理供應鏈和庫存管理，這為我們提供了一個非常獨特的機會，因為我們的業務模式可以有效消除直接庫存帶來的一些庫存風險和相關成本。此外，正如伊曼所提到的，我們透過海運費率正常化獲得了許多順風車。這就是我們對 2023 年第二季的展望。

There seems to be no further questions at this time. So we'll hand back for closing remarks.

目前似乎沒有其他問題了。因此，我們將返回閉幕詞。

Thank you very much for joining this conference call. If you have any further questions, please contact us through e-mail and we'll respond to your questions as soon as possible. We appreciate your interest and support in GigaCloud, and we look forward to speaking with you again next time. Thank you very much.

非常感謝您參加本次電話會議。如果您還有任何疑問，請透過電子郵件與我們聯繫，我們將盡快回覆您的問題。感謝您對GigaCloud的關注和支持，我們期待下次與您再次交談。非常感謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。