iPower Inc (IPW) 2024 Q3 法說會逐字稿

Good afternoon, everyone, and thank you for participating in today's conference call to discuss iPower's financial results for its fiscal third quarter 2024 ended March 31, 2024.

大家下午好，感謝大家參加今天的電話會議，討論 iPower 截至 2024 年 3 月 31 日的 2024 年第三財季財務業績。

Joining us today are iPower's Chairman and CEO, Mr. Lawrence Tan; and the company's CFO, Mr. Kevin Vassily. Mr. Vassily, please go ahead.

今天加入我們的是 iPower 董事長兼執行長 Lawrence Tan 先生；以及公司財務長 Kevin Vassily 先生。瓦西里先生，請繼續。

Thank you, operator, and good afternoon, everyone. By now, you should all have access to our fiscal third-quarter 2024 earnings press release, which was issued earlier today at approximately 4:05 PM Eastern Time. The release is available in the Investor Relations section of our website at meetipower.com. This call will also be available for webcast replay on our website. Following our prepared remarks, we'll open the call for your questions.

謝謝接線員，大家下午好。到目前為止，您應該已經可以閱讀我們今天早些時候於東部時間下午 4:05 左右發布的 2024 年第三財季收益新聞稿。新聞稿可在我們網站 meetipower.com 的投資者關係部分取得。此次電話會議也可在我們的網站上進行網路直播重播。在我們準備好的發言之後，我們將開始電話詢問您的問題。

Before I introduce Lawrence, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance.

在介紹勞倫斯之前，我想提醒聽眾，根據 1995 年《私人證券訴訟改革法案》，本次電話會議和網路廣播中的某些評論被視為前瞻性陳述。前瞻性陳述既不是歷史事實，也不是對未來績效的保證。

Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the state of the economy, and other future conditions.

相反，它們僅基於我們當前對業務未來、未來計劃和策略、預測、預期事件和趨勢、經濟狀況以及其他未來條件的信念、期望和假設。

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in these forward-looking statements.

由於前瞻性陳述涉及未來，因此它們受到固有的不確定性、風險和難以預測的環境變化的影響，其中許多是我們無法控制的。我們的實際結果和財務狀況可能與這些前瞻性陳述中所示的結果和財務狀況有重大差異。

Our presentation today also includes certain non-GAAP financial measures, including adjusted net income and EPS, as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation tables and other important information in the earnings press release and Form 8-K, which we furnished to the SEC this afternoon.

我們今天的演示還包括某些非公認會計原則財務指標，包括調整後的淨利潤和每股收益，作為我們業務績效的補充指標。根據 SEC 規則，所有非 GAAP 衡量標準均已與最直接可比較的 GAAP 衡量標準進行了調整。您可以在我們今天下午向 SEC 提供的收益新聞稿和 8-K 表格中找到調節表和其他重要資訊。

These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC, including our Annual Report on Form 10-K, which was filed with the SEC on September 15, 2023.

這些前瞻性陳述也受到本公司不時向 SEC 提交的文件中所述的其他風險和不確定性的影響，包括我們於 2023 年 9 月 15 日向 SEC 提交的 10-K 表格年度報告。

Do not place undue reliance on any forward-looking statements, which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to forward-looking statements.

請勿過度依賴任何前瞻性陳述，這些陳述僅截至本次電話會議之日作出。除法律要求外，本公司不承擔修改或公開發布前瞻性陳述任何修改結果的義務。

With that, I would now like to turn the call over to iPower's Chairman and CEO, Mr. Lawrence Tan. Lawrence?

現在，我想將電話轉給 iPower 董事長兼執行長 Lawrence Tan 先生。勞倫斯？

Thank you, Kevin, and good afternoon, everyone. We achieved strong financial results in our fiscal third quarter as we generated double-digit revenue growth, record gross margins, and improved operating leverage, resulting in our return to profitability. We are also gaining momentum in our SuperSuite supply chain business, which contributed to our top-line growth in the quarter and now accounts for approximately 10% of the total revenue.

謝謝你，凱文，大家下午好。我們在第三財季取得了強勁的財務業績，實現了兩位數的營收成長、創紀錄的毛利率和改善的營運槓桿，從而恢復了獲利能力。我們的 SuperSuite 供應鏈業務也取得了成長勢頭，這為我們本季的營收成長做出了貢獻，目前約佔總營收的 10%。

In fiscal Q3, our largest channel partner returned to a normalized inventory position and purchasing cycle, which led to stronger order volumes during the quarter. We are pleased with the demand from our largest channel partner and will ensure our product catalog is stocked with the high-quality offerings that our customers expect.

在第三財季，我們最大的通路合作夥伴恢復了正常的庫存狀況和採購週期，這導致本季的訂單增加。我們對最大的通路合作夥伴的需求感到滿意，並將確保我們的產品目錄中備有客戶期望的高品質產品。

Our SuperSuite business, as we have often stated, provides us with valuable insights that we can utilize to enhance our internal capabilities. The acceleration of revenue reflects the value we provide through our superior supply chain, performance, and merchandising expertise. We will continue to invest in this new business as we work through our robust pipeline of prospective partnerships and believe this business will continue to take a greater share of revenue mix going forward.

正如我們經常所說，我們的 SuperSuite 業務為我們提供了寶貴的見解，我們可以利用這些見解來增強我們的內部能力。收入的加速反映了我們透過卓越的供應鏈、績效和行銷專業知識所提供的價值。我們將繼續投資這項新業務，因為我們正在努力建立強大的潛在合作夥伴關係，並相信這項業務將繼續在未來的收入組合中佔據更大的份額。

We have always placed a strong emphasis on diversifying revenue, demonstrated by the launch of SuperSuite last fiscal year. We have also deepened our online presence with social e-commerce platforms like TikTok Shop, where we continue to see solid growth. In April, we expanded our sales channels by launching on Tmall, and have seen promising early results in the kitchen and pet categories.

我們一直非常重視營收多元化，上一財年推出的 SuperSuite 就證明了這一點。我們也透過 TikTok Shop 等社交電子商務平台加深了我們的線上業務，我們在這些平台上繼續看到穩健的成長。4月份，我們透過天貓拓展了銷售管道，並在廚房和寵物類別中看到了可喜的早期成果。

Over the last couple of years, we have purposely shifted our focus from hydroponics to prioritize our core competence as a data-driven consumer products and services company. More recently, we've begun to wind down our legacy commercial hydroponics business where we sold directly to local commercial distributors. We are working through the remaining inventory now and expect to sunset this channel altogether in the coming months.

在過去的幾年裡，我們有目的地將重點從水耕法轉移到優先考慮我們作為數據驅動的消費產品和服務公司的核心競爭力。最近，我們開始逐步結束傳統的商業水耕業務，將產品直接銷售給當地的商業經銷商。我們現在正在處理剩餘的庫存，並預計在未來幾個月內完全取消該管道。

Turning to OpEx, we continue to benefit from our internal initiatives to drive savings in our selling and performance operations. With a healthier supply chain environment, we are no longer required to hold high levels of inventory as we have returned to normalized lead times. We have also sold through most of our high-cost inventory, enabling us to eliminate short-term warehousing costs and improve margins.

說到營運支出，我們繼續受益於我們的內部舉措，以節省我們的銷售和績效營運。有了更健康的供應鏈環境，我們不再需要持有高水準的庫存，因為我們已經恢復了正常的交貨時間。我們還售出了大部分高成本庫存，使我們能夠消除短期倉儲成本並提高利潤率。

As of March 31, we further reduced our inventory level by 25% compared to December 31, 2023. We are also in the early stages of benefiting from third-party warehouse staffing and expect to realize additional savings in the future.

截至3月31日，我們的庫存水準比2023年12月31日進一步減少了25%。我們也處於從第三方倉庫人員配備中受益的早期階段，並期望在未來實現更多節省。

Looking ahead, we are well-positioned to close out fiscal 2024 on a strong footing between the strong demand from our largest channel partner, accelerating growth in SuperSuite, and expansion into new e-commerce channels such as Tmall.

展望未來，我們處於有利地位，憑藉最大通路合作夥伴的強勁需求、SuperSuite 的加速成長以及向天貓等新電子商務管道的擴張，我們處於有利的地位，可以在 2024 財年結束。

I will now turn the call over to our CFO, Kevin Vassily, to take you through our financial results in more detail. Kevin?

我現在將把電話轉給我們的財務長凱文·瓦西里 (Kevin Vassily)，讓您更詳細地了解我們的財務業績。凱文？

Thank you, Lawrence. Unless referenced otherwise, all variance commentary is in comparison to the prior year quarter. So let me dive into our fiscal Q3 results.

謝謝你，勞倫斯。除非另有說明，否則所有差異評論均與去年同期相比。讓我深入探討一下我們第三季的財務表現。

Total revenue increased 15% to $23.3 million, compared to $20.2 million. The increase was primarily driven by greater product sales to our largest channel partner, in addition to growth in our SuperSuite supply chain offerings.

總收入從 2,020 萬美元成長 15% 至 2,330 萬美元。這一成長主要是由於我們最大的通路合作夥伴的產品銷售增加以及我們的 SuperSuite 供應鏈產品的成長所推動的。

Gross profit in the third fiscal quarter of 2024 increased 41% to s$10.9 million, compared to $7.8 million in the same quarter of fiscal 2023. As a percentage of revenue, gross margin increased 850 basis points to a record 47%, compared to 38.5% in the year-ago quarter. The increase in gross margin was primarily driven by improved pricing through our key supplier negotiations, as well as favorable product mix.

2024 年第三財季的毛利成長 41%，達到 1,090 萬新元，而 2023 財年同一季度的毛利為 780 萬新元。毛利率佔營收的百分比成長了 850 個基點，達到創紀錄的 47%，而去年同期為 38.5%。毛利率的成長主要是由於我們透過主要供應商談判提高了定價以及有利的產品組合。

Total operating expenses for fiscal Q3 were $9.3 million, compared to $9.6 million for the same period in fiscal 2023. As a percentage of revenue, operating expenses improved 740 basis points to 40.1%, compared to 47.5% in the year-ago period, reflecting the operating leverage in our business as well as lower selling and fulfillment costs resulting from, among other things, some vendor credits.

第三財季的總營運支出為 930 萬美元，而 2023 財年同期為 960 萬美元。營運費用佔收入的百分比提高了 740 個基點，達到 40.1%，而去年同期為 47.5%，反映了我們業務的營運槓桿以及銷售和履行成本的降低，其中包括一些因素供應商信用。

Net income attributable to iPower in fiscal third quarter improved to $1 million, or $0.03 per share, compared to a net loss of $1.5 million, or a loss of $0.05 per share, for the same period in fiscal 2023. Adjusted net income attributable to iPower, which excludes legal fees for arbitration, net of tax impact, improved to $1.6 million, or $0.05 per share, compared to an adjusted net loss of $1.4 million, or a loss of $0.05 per share in the same period in 2023.

第三財季 iPower 淨利增加至 100 萬美元，即每股虧損 0.03 美元，而 2023 財年同期淨虧損為 150 萬美元，即每股虧損 0.05 美元。調整後歸屬於 iPower 的淨利潤（不包括仲裁法律費用，扣除稅收影響）增至 160 萬美元，即每股虧損 0.05 美元，而同期調整後淨虧損為 140 萬美元，即每股虧損 0.05 美元2023年。

Moving to the balance sheet. Cash and cash equivalents were $2.7 million as of March 31, 2024, compared to $3.7 million at June 30, 2023. Total debt stood at $6 million, compared to $11.8 million as of June 30, 2023. The decrease was driven by our continued efforts to pay down debt, which resulted in a 59% reduction in net debt to $3.3 million, compared to $8.1 million of net debt as of June 30, 2023.

轉向資產負債表。截至 2024 年 3 月 31 日，現金及現金等價物為 270 萬美元，而截至 2023 年 6 月 30 日為 370 萬美元。債務總額為 600 萬美元，而截至 2023 年 6 月 30 日為 1,180 萬美元。這一下降是由於我們持續努力償還債務，導致淨債務減少 59% 至 330 萬美元，而截至 2023 年 6 月 30 日的淨債務為 810 萬美元。

Cash flow from operations was essentially neutral in fiscal Q3, largely driven by an increase in our direct import business with Amazon, which carries both higher operating margins but slightly longer payment terms.

第三財季的營運現金流基本上保持中性，這主要是由於我們與亞馬遜的直接進口業務增加所致，該業務的營運利潤率較高，但付款期限稍長。

To summarize, we are beginning to realize the benefits of less high-cost inventory and internal optimization efforts, which drove our record gross margin and improved operating leverage for the quarter. We also continued to strengthen our balance sheet by reducing net debt by nearly 60% during the quarter compared to June 30, 2023. And as Lawrence touched on, we've got multiple initiatives in place to drive further growth as we look to fiscal Q4 and the year ahead.

總而言之，我們開始意識到減少高成本庫存和內部優化工作的好處，這推動了我們創紀錄的毛利率並提高了本季的營運槓桿。與 2023 年 6 月 30 日相比，本季淨負債減少近 60%，持續強化資產負債表。正如勞倫斯所談到的那樣，在展望第四財季和未來一年時，我們採取了多項舉措來推動進一步成長。

This concludes our prepared remarks, and we'll now open it up for questions. Operator?

我們準備好的演講到此結束，現在我們將開始提問。操作員？

(Operator Instructions) Scott Fortune, Roth MKM.

（操作員說明）Scott Fortune，Roth MKM。

Yes. Good afternoon and thanks for the questions. Congratulations on the strong quarter. And it seems that a lot is driven from the strong order from, obviously, you've called out the largest channel partner as they returned to more of a normalized inventory purchasing cycle.

是的。下午好，感謝您的提問。恭喜季度表現強勁。顯然，這很大程度上是由強勁的訂單推動的，顯然，您已經召集了最大的通路合作夥伴，因為他們已恢復到更多正常化的庫存採購週期。

But moving forward, how should we look at this going forward? Can we take a historical growth from years past as far as going forward with this, moving forward with them?

但展望未來，我們該如何看待這一點？我們能否以過去幾年的歷史性增長來繼續前進，與他們一起前進？

And just call out the products that -- or the industries that's driving a lot of this growth through that large channel partner. Because it seems like the consumer demand remained strong for your products, but what is your partner telling you as you look out for the rest of the year with them?

只需指出透過大型通路合作夥伴推動大量成長的產品或產業。因為消費者對你們產品的需求似乎依然強勁，但當你們展望今年剩餘時間時，你們的合作夥伴告訴你們什麼？

Lawrence, why don't you take the second part of the question, the products and the overall demand, and I can talk a little bit about what this means going forward?

勞倫斯，為什麼不回答問題的第二部分，即產品和整體需求，我可以談談這對未來意味著什麼？

Sure, sure. So the largest channel partners, they historically have, in the last couple of years, been at a similar position as us, like going through the high-cost, overstocked inventory. We moved quite a bit faster than the industry. Our partner seems to work better than the rest of comparable larger partner channels. So what this means, that the -- what I think is that going down the road, it has been returning to a steady, normal, healthy, replenished mode.

一定一定。因此，最大的通路夥伴在過去幾年中一直處於與我們類似的境地，例如承受高成本、庫存過剩的庫存。我們的行動速度比產業快得多。我們的合作夥伴似乎比其他類似的大型合作夥伴管道運作得更好。所以這意味著什麼——我認為，沿著這條路走下去，它已經回到了穩定、正常、健康、補充的模式。

As for our product mix, since our products are focusing on value of the commercial -- I'm sorry, consumer products, those products are pretty resilient to economical change. And what I think is that the demand will continue to grow. So even during the years where we -- iPower has been trying to recover from the overstocking from the high-cost inventory, what we see is the demand is still there, is demand still grow. And I believe this is going to be a trend going forward.

至於我們的產品組合，由於我們的產品專注於商業價值——對不起，消費產品，這些產品對經濟變化的適應能力相當強。我認為需求將持續成長。因此，即使在這些年裡，我們——iPower 一直在努力從高成本庫存的庫存過剩中恢復過來，我們看到的是需求仍然存在，需求仍然增長。我相信這將成為未來的趨勢。

As we introduce SuperSuite, we will add on more of the supply chain partners to provide good-value product to the consumers in our network. I believe going down the road, we have a pretty good future to cash on.

隨著我們推出 SuperSuite，我們將增加更多的供應鏈合作夥伴，為我們網路中的消費者提供高價值的產品。我相信，沿著這條路走下去，我們有一個美好的未來可以兌現。

And then, Scott, just on how to think about this quarter versus prior quarters. I'll remind everyone we don't give specific guidance. But what I'll say is we -- in a way, I think we talked about this a little bit on the last quarter, the order rates from our largest channel partner in the December quarter were really a reflection and probably a larger than we anticipated work on their own inventory management. And we did expect a bit of a rebound in this quarter, and we saw it.

然後，斯科特，談談如何看待本季與前幾季的情況。我要提醒大家，我們不提供具體指導。但我要說的是，在某種程度上，我認為我們在上個季度對此進行了一些討論，我們最大的通路合作夥伴在12 月季度的訂單率確實反映了這一點，並且可能比我們更大預期自己的庫存管理工作。我們確實預計本季會出現一些反彈，我們也看到了。

So I think some combination of historical quarterly trends, with some caution on our part because we want to make sure that we're not seeing a bit of a bull whip from that channel partner where they may have potentially brought a little bit of extra demand into this current quarter.

因此，我認為歷史季度趨勢的某種組合，我們需要謹慎，因為我們希望確保我們不會看到來自通路合作夥伴的牛鞭，他們可能會帶來一點額外的需求進入本季度。

But I think what Lawrence touched on is correct. We have multiple additional opportunities to work with, partners on the SuperSuite side, all of which we can use that large channel partner as a sales avenue for them.

但我認為勞倫斯所說的是正確的。我們還有多個與 SuperSuite 的合作夥伴合作的機會，所有這些我們都可以利用大型通路合作夥伴作為他們的銷售管道。

So still a little early to say in this quarter, but we're very optimistic about where we're headed. So hopefully, that's enough for you to take to your model, and we can talk a little bit more if you've got other questions.

因此，現在說這個季度還為時過早，但我們對我們的發展方向非常樂觀。希望這足以讓您了解您的模型，如果您還有其他問題，我們可以進一步討論。

Yeah, that's helpful. I appreciate that color. And just following up with that, the SuperSuite of services that now accounts for, what, 10% of the business, but are you expanding your existing partners there? Or will you -- a lot of this came from the new food industry partner that you're bringing on board?

是的，這很有幫助。我很欣賞那種顏色。緊隨其後的是，SuperSuite 服務現在佔業務的 10%，但是您是否在那裡擴展現有的合作夥伴？或者您會—其中許多來自您引入的新食品業合作夥伴嗎？

Just step us through the partnerships you have and the growth from a capacity side, on the expense side, to -- you have enough room here without adding too much more on the expense side to continue that, and service new partners here, which will continue to drive the gross margin side.

只需引導我們了解您所擁有的合作夥伴關係以及從容量方面、費用方面的增長，您在這裡就有足夠的空間，而無需在費用方面增加太多內容來繼續這一點，並為這裡的新合作夥伴提供服務，這將毛利率方面繼續拉動。

And just remind us gross margins on service side business, and is that ticking up or the overall gross margins as it helps for that gross margin improvement? Just more color on the service suite would be helpful.

只是提醒我們服務端業務的毛利率，是整體毛利率上升還是整體毛利率上升，因為它有助於毛利率改善？在服務套件上添加更多顏色會有所幫助。

All right. So there were a lot of questions there. Let me try to do a couple of them one by one. I think we've said in the past that early on, as we bring new partners on, our gross margins, in particular, as we're using as our entree with a new partner the sales and fulfillment service offering, those gross margins are going to be at or even slightly below our normalized gross margins. But as we grow those individual partners, I think we can get better than our historical gross margin average. And I think we were seeing some of that in this quarter.

好的。所以那裡有很多問題。讓我試著一一做其中的幾個。我認為我們過去曾說過，當我們引入新合作夥伴時，我們的毛利率，特別是當我們與新合作夥伴一起使用銷售和履行服務產品作為主菜時，這些毛利率是將達到甚至略低於我們的標準化毛利率。但隨著我們發展這些個人合作夥伴，我認為我們可以比歷史平均毛利率更好。我認為我們在本季度看到了其中的一些情況。

I'll let Lawrence talk a little bit about some of the opportunities that we have. Most of what we're doing in the quarter was growing was growing our current partners. And so I think when I said, as these partners mature with us, we can see better than corporate average gross margins, I think you're seeing some of that show up in this quarter.

我會讓勞倫斯談談我們擁有的一些機會。我們在本季所做的大部分工作都是在發展現有的合作夥伴。因此，我認為當我說隨著這些合作夥伴與我們一起成熟時，我們可以看到比企業平均毛利率更好的毛利率，我認為您會在本季度看到其中的一些表現。

I think it's important also to point out that, over the last year, in addition to working hard to bring down inventory, remove the additional cost that we had both from the high freight burden but as well as excess costs associated with temporary warehouse space, we were working with quite a few of our suppliers at ways of taking additional costs out of the products that were being manufactured, such that we can then bring to market products that we're carrying better gross margins. We're seeing the fruit of that as well.

我認為還必須指出的是，在過去的一年裡，除了努力降低庫存之外，還消除了我們因高運費負擔以及與臨時倉庫空間相關的超額成本而產生的額外成本，我們正在與相當多的供應商合作，設法從正在製造的產品中扣除額外成本，這樣我們就可以將毛利率更高的產品推向市場。我們也看到了其成果。

So I think we've been working hard on both the cost of goods sold as well as operating costs, and I think we're very pleased so far as to where we are. And we think we still have some work to do going forward. I will remind, and I think we said this on the last call too, there still is some inventory that we have, particularly in our fan business, which is strongest in the summer months, that carry higher freight cost burdens than products that we're buying now in that category.

因此，我認為我們一直在努力降低銷售成本和營運成本，而且我認為到目前為止我們對目前的情況感到非常滿意。我們認為未來仍有一些工作要做。我想提醒一下，我想我們在上次電話會議上也說過這一點，我們仍然有一些庫存，特別是在我們的粉絲業務中，該業務在夏季最為強勁，其運費負擔比我們的產品更高。

So we're going to have to bleed that through. It's not a ton, and we don't think it will materially impact gross margin, but we were not selling any of that in the January to March period. As you might expect, people aren't buying a whole lot of fans when it's cold outside.

所以我們必須要讓它流血。這不是很多，我們認為這不會對毛利率產生重大影響，但我們在一月至三月期間沒有出售任何產品。正如您所預料的那樣，當外面很冷時，人們不會購買大量的風扇。

Lawrence, maybe you could touch on just the potential companies that we might be working with as we bring additional partners on in the SuperSuite business.

勞倫斯，也許您可以談談我們在 SuperSuite 業務中引入更多合作夥伴時可能與之合作的潛在公司。

Sure, sure. So the SuperSuite really come out of the internal capabilities we've been developing as a retailer online. So with the logistics ability, the software and technology, and business intelligence where we developed both internally and working with external technology suppliers, enabled us to become an effective sales and merchandising platform and fulfillment platform for supply chain brand.

一定一定。因此，SuperSuite 確實源自於我們作為線上零售商一直在開發的內部功能。因此，憑藉我們內部開發以及與外部技術供應商合作的物流能力、軟體和技術以及商業智能，使我們能夠成為供應鏈品牌有效的銷售和推銷平台以及履行平台。

We started to get inquiries from these partners in a couple of years, starting a couple of years ago, about working together and marketing and merchandising their product.

從幾年前開始，幾年後我們開始收到這些合作夥伴的詢問，詢問如何合作以及行銷和推銷他們的產品。

So where the SuperSuite, that's -- where the SuperSuite comes from and the few categories we've been already working on, including electronics and home products, we'll probably share with more details in the coming short time to see -- to give more details to the market.

因此，SuperSuite 的來源以及我們已經在研究的幾個類別，包括電子產品和家用產品，我們可能會在接下來的短時間內分享更多細節，以提供更多資訊。

Now what I -- the framework has been working on by -- internally for a while. And I do see -- I do have quite a bit of a down the road in the pipeline where we are actively working on and hopefully start to see good results going down the road.

現在，我——該框架已經在內部進行了一段時間的工作。我確實看到了——我確實有相當多的工作正在進行中，我們正在積極努力，並希望開始看到良好的結果。

As for the gross margin, it all -- it actually depends on the product categories. But what I see this is our in-house products will continue to grow and will still drive the business substantially for a period of time, until the SuperSuite start to explode.

至於毛利率，這實際上取決於產品類別。但我認為我們的內部產品將繼續成長，並且仍將在一段時間內大幅推動業務發展，直到 SuperSuite 開始爆炸性成長。

But the SuperSuite side can grow much, much faster than our in-house parts of the business. So that's why we have a pretty good -- we feel like that part might start to see much, much better growth rate than the in-house part.

但 SuperSuite 方面的成長速度比我們內部業務部分快得多。所以這就是為什麼我們有一個相當好的 - 我們覺得這部分可能會開始看到比內部部分更好的成長率。

Now as for the gross margin, as it grows faster, it may carry -- it may not carry as high as the gross margin of the in-house product, but the revenue side going to be a lot higher. That's what I tend to see down the road.

現在就毛利率而言，隨著它增長得更快，它可能會帶來——它可能不會像內部產品的毛利率那麼高，但收入方面會高得多。這就是我在未來往往會看到的情況。

That's helpful. And Lawrence, real quick, just to follow up on that. You've had SuperSuite in play here for a little while. Are you seeing the pipeline looking to accelerate? Are you having more discussions further down the road on bringing on new clients to the SuperSuite? Just help us understand the expansion opportunity here near term, obviously, long term, a pretty good opportunity, but near term, what are you seeing from those discussions?

這很有幫助。勞倫斯很快就跟進了。您已經使用 SuperSuite 有一段時間了。您是否看到管道正在加速？您是否會進一步討論如何為 SuperSuite 引進新客戶？只是幫助我們了解短期內的擴張機會，顯然，長期來看，這是一個相當好的機會，但短期內，您從這些討論中看到了什麼？

I'm -- near term, I'm working with both the branded supply chain partner to bring on board as well as key strategical partnerships to bring on board. I tend to think that SuperSuite is like an open platform where we can bring key partners into this platform and where they can bring more supply chain and brands into the platform. So that's what I see down the road and have been working on it for a while, yeah.

短期內，我正在與品牌供應鏈合作夥伴合作，並與關鍵的策略夥伴合作。我傾向於認為SuperSuite就像一個開放平台，我們可以將主要合作夥伴引入這個平台，他們也可以將更多的供應鏈和品牌引入該平台。這就是我所看到的，並且已經為此努力了一段時間，是的。

Appreciate the color. Back in the queue. Thanks.

欣賞顏色。回到隊列中。謝謝。

Thierry Wuilloud, Water Tower Research.

Thierry Wuilloud，水塔研究。

Yeah, Lawrence, Kevin, good afternoon. Congratulations on the quarter. You covered quite a bit of ground, but maybe just a few questions. First, on the gross margin, is cost input like a big factor? You get better pricing or lower cost on the input for your product? Is that what I'm reading?

是的，勞倫斯、凱文，午安。恭喜本季。您涵蓋了相當多的基礎知識，但可能只提出了幾個問題。首先，就毛利率而言，成本投入是一個很大的因素嗎？您的產品投入能獲得更好的定價還是更低的成本？這就是我正在讀的內容嗎？

Kevin, you want to take this?

凱文，你想拿這個嗎？

I didn't hear the question.

我沒有聽到問題。

There's two reasons for improved margins: favorable product mix; and then improved pricing. Does it mean the input costs have been going down or have been better than expected?

利潤率提高有兩個原因：有利的產品組合；然後改進定價。這是否意味著投入成本已經下降或比預期好？

Okay. Yeah, I heard that part now. Do you want me to take it, Lawrence, or do you want to take it?

好的。是的，我現在聽到了那部分。勞倫斯，你想要我接受它，還是你想要接受它？

You can take it, that's fine.

你可以拿走，那很好。

Yeah, yeah, yeah. So it's both. Every quarter, I think I tried to emphasize this, we -- given the size of our catalog, now as well including the SuperSuite partners that are utilizing our sales channel, there is a distribution of margins as they're not all, obviously, sitting at 43%. And so the mix is skewed towards our higher-margin products, for sure, this quarter.

耶耶耶。所以兩者都是。每個季度，我想我都試圖強調這一點，考慮到我們目錄的規模，現在還包括利用我們銷售管道的 SuperSuite 合作夥伴，有一個利潤分配，因為它們顯然不是全部，佔43%。因此，本季的產品組合肯定會偏向我們的利潤率較高的產品。

The other thing that has been at work though, and I think I referenced this in my answer to Scott, was that there have been a number of initiatives underway for the last year with some of our largest contract manufacturing partners to take costs out of the products that they're manufacturing for us, that allows us to bring products to market with a lower cost of goods sold. And those efforts are starting to show up. So it's both, Thierry.

不過，另一件事一直在起作用，我想我在給斯科特的回答中提到了這一點，那就是去年我們與一些最大的合約製造合作夥伴正在採取一系列舉措 他們，以降低成本。為我們生產的產品，使我們能夠以較低的銷售成本將產品推向市場。這些努力已經開始顯現。所以兩者都是，蒂埃里。

Okay. In terms of sales channels, you mentioned you started Tmall in April, so obviously, that was not in that quarter's result. But can you give us a sense of which channels are developing the fastest besides Amazon, and if you're going to have any meaningful maybe physical channel also?

好的。在銷售管道方面，您提到您在四月啟動了天貓，所以顯然這並不在該季度的業績中。但是，您能否讓我們了解一下，除了亞馬遜之外，哪些管道發展最快？

Lawrence, do you want to take that?

勞倫斯，你想接受這個嗎？

Yeah, sure. Tmall is a very interesting channel. Now they approached us, and we are working with them since April. So far, we've been seeing pretty good results early on. And the platform is pretty value-centric. So it's more -- like very similar to Amazon, where they're trying to bring the best value to the consumer. And that fits our category and our catalog pretty well. So I think we're going to do well there on this channel. So, so far, I think this channel is growing pretty fast.

好，當然。天貓是一個非常有趣的管道。現在他們聯繫了我們，我們從四月開始就與他們合作。到目前為止，我們已經在早期看到了相當不錯的結果。該平台非常以價值為中心。所以它更像是與亞馬遜非常相似，他們試圖為消費者帶來最好的價值。這非常適合我們的類別和目錄。所以我認為我們在這個頻道上會做得很好。所以，到目前為止，我認為這個管道成長得相當快。

On the social media side, on TikTok Shop, we've been seeing a steady growth and we've been working pretty well on there, but we all know that the uncertainty of the TikTok Shop going down the road -- is uncertain. But fortunately, it's not a big part of our business so far. So we'll play and see. We already have the infrastructure developed. We already have a methodology. And so far, it's doing well, so we'll see.

在社群媒體方面，在 TikTok Shop 上，我們看到了穩定的成長，我們在這方面做得很好，但我們都知道 TikTok Shop 未來的不確定性是不確定的。但幸運的是，到目前為止，這還不是我們業務的重要組成部分。那我們就來玩玩看看吧。我們已經開發了基礎設施。我們已經有了一個方法論。到目前為止，它表現良好，所以我們拭目以待。

We've also been working on homedepot.com, lowes.com target.com, where we -- those have pretty different model, working with these platforms, than the Amazon, give a comparison, where we work with buyers and we work with product selections, and we've been getting more product be improved. We're still working on that. Now, but at the same, that, is once we do well on the dot-com, we may get an opportunity to enter in the physical stores, if that's what you've been asking, yes, questions.

我們也一直在 homedepot.com、lowes.com target.com 上工作，我們與亞馬遜相比，與這些平台合作的模式非常不同，我們與買家合作，與亞馬遜合作產品選擇上，我們一直在讓更多的產品得到改進。我們仍在努力。現在，但與此同時，一旦我們在互聯網上表現出色，我們可能有機會進入實體店，如果這就是您一直在問的問題，是的，問題。

Great. Okay. And then maybe one last question. You mentioned that the business -- suite business is helping you enhance your internal capabilities. And I'm curious how that's working or what that means.

偉大的。好的。也許還有最後一個問題。您提到商務套件業務正在幫助您增強內部能力。我很好奇這是如何運作的或這意味著什麼。

Okay. So along the way where we're working with our partners on the SuperSuite platform, we're also gaining more knowledge on industry different categories and we're also enhancing our abilities of data, software, as well as performance. So we -- think that of that as an open platform where we not only just work with the supply chain partners, we're also working with logistics partners as well and other technology partners.

好的。因此，在我們與合作夥伴在 SuperSuite 平台上合作的過程中，我們也獲得了更多關於產業不同類別的知識，我們也在增強我們的數據、軟體和效能方面的能力。因此，我們認為這是一個開放平台，我們不僅與供應鏈合作夥伴合作，還與物流合作夥伴以及其他技術合作夥伴合作。

So along the way, where we're working with everyone, we've been getting better and better, enhanced capabilities and we absorb and working with all these partners. And so not only we service people, we also gain knowledge and expertise and other strengths along the way.

因此，一路走來，在我們與每個人合作的過程中，我們變得越來越好，能力得到增強，我們吸收了所有這些合作夥伴並與之合作。因此，我們不僅為人們服務，還在過程中獲得知識、專業知識和其他優勢。

Great. Thank you, guys.

偉大的。感謝你們。

Thank you, Thierry.

謝謝你，蒂埃里。

That concludes today's question-and-answer session. I'd like to turn the call back to Kevin Vassily for closing remarks.

今天的問答環節到此結束。我想將電話轉回給凱文·瓦西里（Kevin Vassily）做總結發言。

Okay. Thank you, everyone, for joining us today. We look forward to either speaking with you when we report our fiscal Q4 and full-year results for 2024 in September, and/or seeing you or speaking with you at a conference in the interim. Thanks again and we'll talk again soon. Bye-bye.

好的。謝謝大家今天加入我們。我們期待在 9 月報告 2024 年第四季度財報和全年業績時與您交談，和/或在此期間在一次會議上見到您或與您交談。再次感謝，我們很快會再次交談。再見。

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。