蘭亭集勢 (LITB) 2024 Q3 法說會逐字稿

Hello, ladies and gentlemen, thank you for standing by for LightInTheBox's third-quarter 2024 earnings conference call. (Operator Instructions) Today's conference call is being recorded.

女士們、先生們，大家好，感謝您參加 LightInTheBox 2024 年第三季財報電話會議。 （操作員指示）今天的電話會議正在錄音。

I will now turn the call over to your host, Ms. Jenny Cai. Please go ahead, Jenny.

現在我將電話轉給主持人 Jenny Cai 女士。請繼續，珍妮。

Thank you operator. Hello, everyone, and welcome to LightInTheBox third quarter 2024 earnings conference call. The company's earnings results were released via Newswire services earlier today, and are available on the company's IR website at ir.ador.com.

謝謝接線生。大家好，歡迎參加 LightInTheBox 2024 年第三季財報電話會議。該公司的盈利結果於今天早些時候透過新聞專線服務發布，並可在該公司的 IR 網站 ir.ador.com 上查閱。

On the call from LightInTheBox today are Mr. Jian He, CEO; Ms. Yuanjun Ye, CFO; and Ms. Wenyu Liu, Chief Growth Officer. Mr. He will provide an overview of the company's strategies and recent developments, followed by Ms. Ye who will go over its financial results.

今天 LightInTheBox 電話會議上有執行長何健先生；葉元君女士，財務長；以及首席增長官劉文宇女士。何先生將概述公司的策略和最新發展，隨後葉女士將介紹公司的財務表現。

Following our prepared remarks, we'll open the call to questions. Before we proceed, please note that today's discussion may contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995.

在我們準備好發言之後，我們將開始提問。在我們繼續之前，請注意，今天的討論可能包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations. To understand the factors that could cause results to materially differ from those in forward-looking statements, please refer to the company's Form 20-F filed with the Securities and Exchange Commission.

這些前瞻性陳述受風險和不確定性的影響，可能導致實際結果與公司目前預期有重大差異。若要了解可能導致結果與前瞻性陳述有重大差異的因素，請參閱本公司向美國證券交易委員會提交的 20-F 表格。

The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that LightInTheBox earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures.

除適用法律要求外，該公司不承擔更新任何前瞻性聲明的義務。另請注意，LightInTheBox 收益新聞稿和本次電話會議包括未經審計的 GAAP 財務指標以及未經審計的非 GAAP 財務指標的討論。

Please refer to the company's earnings press release which contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures.

請參閱本公司的收益新聞稿，其中包含未經審計的非 GAAP 指標與未經審計的 GAAP 指標的對帳。

Now I'd like to turn the call over to LightInTheBox, CEO, Mr. He, please go ahead.

現在我想把電話轉給LightInTheBox執行長何先生，請繼續。

Good morning, and good evening everyone. Thank you for joining LightInTheBox third-quarter 2024 earnings call. In the face of an intense competition across the e-commerce industry, in 2024, we made the strategic decision not to chase market share at any cost.

大家早安，晚上好。感謝您參加 LightInTheBox 2024 年第三季財報電話會議。面對電商產業的激烈競爭，2024年，我們做出了不惜一切代價追逐市場佔有率的策略決策。

Rather than participating in a race to the bottom, we shifted our focus to protecting our margins and enhancing profitability early this year. This approach has enabled us to achieve profitability despite the significant revenue fluctuations as we navigate an incredibly competitive landscape.

今年年初，我們沒有參與競相壓低價格的競爭，而是將重點轉向保護利潤率和提高獲利能力。儘管我們在競爭異常激烈的環境中收入波動很大，這種方法使我們仍然能夠實現盈利。

But that's not the only story, we are transforming LightInTheBox from an e-commerce retailer into a brand-focused apparel designer with the launch of our new brand Ador.com. Ador isn't just another online store. It's a bold design driven venture that reflects our commitment to quality and the style.

但這並不是唯一的故事，隨著新品牌 Ador.com 的推出，我們正在將 LightInTheBox 從一家電子商務零售商轉變為以品牌為中心的服裝設計公司。 Ador 不只是一家網路商店。這是一次大膽的設計驅動的冒險，體現了我們對品質和風格的承諾。

With Ador, we will be crafting proprietary apparel collections, and selling them directly to consumers online, allowing us to control quality, brand image, and ultimately, profitability. What makes Ador truly exciting is our approach to product development, and the customer engagement, with design studios and sample shops in both the United States and China, including a boutique and design studio in Campbell, California.

透過與 Ador 合作，我們將製作專有服裝系列，並直接在線上銷售給消費者，讓我們能夠控製品質、品牌形像以及最終的獲利能力。 Ador 真正令人興奮的地方在於我們的產品開發方法和客戶參與度，我們在美國和中國都設有設計工作室和樣品店，包括位於加州坎貝爾的精品店和設計工作室。

We are able to gather real-time feedback from customers, and refine our collections to meet their preferences. We recently hired a talented new designer based in the United States, and we're thrilled with fresh perspectives, and creativity they bring to our team.

我們能夠收集客戶的即時回饋，並改進我們的產品系列以滿足他們的喜好。我們最近聘請了一位駐美國的才華橫溢的新設計師，他們為我們的團隊帶來的新視角和創造力讓我們感到非常興奮。

Our aim with Ador is to offer high quality clothing at prices 50% lower than similar brands, without sacrificing our margins. This direct to consumer model is already delivering higher margins, offering an encouraging path to sustainable growth.

Ador 的目標是以比同類品牌低 50% 的價格提供高品質的服裝，同時不犧牲我們的利潤。這種直接面向消費者的模式已經產生了更高的利潤，為永續成長提供了一條令人鼓舞的道路。

Unlike traditional retailers, Ador will not bear the costs associated with maintaining a physical retail network which allows us to invest more in the brand's designs and product quality. In addition to women's clothing, the company is expanding into niche markets is women's golf apparel, and a new line of men's clothing to further broaden our customer base.

與傳統零售商不同，Ador 不會承擔維護實體零售網路相關的成本，這使我們能夠將更多資金投入品牌的設計和產品品質。除女裝外，公司還在向女士高爾夫服裝等利基市場拓展，並推出新的男裝系列，以進一步拓寬我們的客戶群。

These expansions represent our commitment to building a brand ecosystem around Ador that resonates with quality-conscious, style-savvy consumers. Beyond fashion, LightInTheBox is also leveraging its team's extensive experience, and the expertise to offer a comprehensive suite of services to e-commerce companies.

這些擴張代表了我們致力於圍繞 Ador 打造一個能引起注重品質、精通風格的消費者共鳴的品牌生態系統。除了時尚之外，LightInTheBox還利用其團隊的豐富經驗和專業知識，為電子商務公司提供全面的服務。

This includes advertising, supply chain management, payment processing, order fulfillment, shipping and delivery solutions. These capabilities have been developed through years of refining our processes, and represent another pillar of growth of our business.

這包括廣告、供應鏈管理、支付處理、訂單履行、運輸和交付解決方案。這些能力是我們經過多年流程改善而開發出來的，也是我們業務成長的另一個支柱。

In summary, LightInTheBox is undergoing a transformative journey. Our legacy e-commerce site will remain active, but the heart of our future growth lies in Ador and our house brands as well as our e-commerce services. This shift not only aligns us more closely with our customers, but also paves the way for stronger sustainable profitability.

總而言之，LightInTheBox 正在經歷一段變革之旅。我們傳統的電子商務網站將繼續活躍，但我們未來成長的核心在於 Ador 和我們的自有品牌以及我們的電子商務服務。這種轉變不僅使我們與客戶更加緊密地聯繫在一起，而且為更強的可持續盈利能力鋪平了道路。

With that, I will now hand the call over to Yuanjun to go through our financial results.

說完這些，我現在將電話交給袁軍來報告我們的財務表現。

Thank you, Mr. He. Good morning and good evening everyone. Before we delve into our financials, please note that unless otherwise stated, all figures are presented in US dollars. In the third quarter of 2024, our total revenues decreased by 63% year-over-year to $57 million, primarily due to intense competition in the global e-commerce industry.

謝謝何先生。大家早安，晚上好。在我們深入研究財務狀況之前，請注意，除非另有說明，所有數字均以美元表示。 2024年第三季度，我們的總營收年減63%至5,700萬美元，主因是全球電子商務產業競爭激烈。

Despite this decline, our gross profit was $35 million compared with $92 million in the same quarter last year. Notably, our gross margin improved to 61% this quarter from 60% in the same period last year. This enhancement is largely attributable to the positive impact of our new product lines, particularly those from Ador.com which offer higher margins, and have been well received by our customers.

儘管下滑，我們的毛利仍為 3,500 萬美元，而去年同期為 9,200 萬美元。值得注意的是，我們的毛利率從去年同期的60%提高到本季的61%。這項提升主要歸功於我們新產品線的正面影響，尤其是來自 Ador.com 的產品線，它們利潤更高，並受到了客戶的一致好評。

We achieved a 63% reduction in total operating expenses year over year, bringing them down to $34 million from $92 million in the same period last year. This decrease was mainly due to the decline in revenue, complemented by our effective operational efficiency enhancements.

我們的總營運費用年減了 63%，從去年同期的 9,200 萬美元降至 3,400 萬美元。下降的主要原因是收入下降，以及我們有效的營運效率提高。

Breaking down the operating expenses, fulfillment expenses decreased by 50% year-over-year to $4 million, reflecting our streamlined logistics and supply chain processes. Selling and marketing expenses declined by 67% year-over-year to $25 million. Importantly, the return on investment for our selling marketing expenses increased as our new product lines, demonstrated higher advertising efficiency, and customer engagement.

分項營運費用來看，履行費用年減 50% 至 400 萬美元，反映了我們精簡的物流和供應鏈流程。銷售和行銷費用較去年同期下降67%至2,500萬美元。重要的是，隨著我們的新產品線表現出更高的廣告效率和客戶參與度，我們的銷售行銷費用的投資報酬率也增加了。

General and administrative expenses decreased by 42% year-over-year to $6 million. Within G&A expenses, research and development expenses were $3 million compared with $5 million in the same quarter last year. We continue to invest strategically in R&D and artificial intelligence, as we view these areas as central to our product differentiation, and operational efficiency efforts.

一般及行政開支年減 42% 至 600 萬美元。在一般及行政費用中，研發費用為 300 萬美元，去年同期為 500 萬美元。我們繼續在研發和人工智慧方面進行策略性投資，因為我們認為這些領域是我們產品差異化和營運效率努力的核心。

As a result of these measures, we maintained profitability in the third quarter, recording a net income of $0.3 million compared to $0.1 million in the same quarter last year. Our adjusted EBITDA was $0.8 million, consistent with the third quarter of 2023.

由於採取了這些措施，我們在第三季度保持了盈利能力，淨收入為 30 萬美元，而去年同期為 10 萬美元。我們的調整後 EBITDA 為 80 萬美元，與 2023 年第三季一致。

Looking ahead, we will continue to prioritize efficiency and profitability improvement, with a strong focus on the growth and development of our new initiatives, including our new brand operations and comprehensive service offerings for e-commerce companies. We remain dedicated to pursuing high quality development and delivering value to our shareholders.

展望未來，我們將繼續優先提高效率和獲利能力，並專注於新措施的成長和發展，包括我們的新品牌營運和為電子商務公司提供的綜合服務。我們將繼續致力於追求高品質發展，為股東創造價值。

This concludes our remarks. We are now open to your questions.

我們的發言到此結束。我們現在願意回答您的問題。

(Operator Instructions) As there are no questions, now I'd like to turn the call back over to the company for closing remarks.

（操作員指示）由於沒有問題，現在我想將電話轉回給公司做結束語。

Thank you once again for joining us today. If you have further questions, please feel free to contact LightInTheBox investor relations through the contact information provided on our website or Piacente Financial Communications. Have a great day.

再次感謝您今天的參與。如果您還有其他問題，請隨時透過我們網站或 Piacente Financial Communications 提供的聯絡資訊聯絡 LightInTheBox 投資者關係部門。祝你有美好的一天。