Yunji Inc (YJ) 2022 Q4 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's Fourth Quarter 2022 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Chengqi Zhang, Vice President of Finance; and Ms. Kaye Liu, Investor Relations Director of the company. As a reminder, this conference call is being recorded.

女士們先生們，早上好，晚上好。感謝您的支持，歡迎來到雲集 2022 年第四季度財報電話會議。今天和我們在一起的是董事長兼首席執行官肖尚略先生；財務副總裁張承啟先生；以及公司投資者關係總監Kaye Liu女士。提醒一下，正在錄製此電話會議。

Now, I would like to hand the conference over to our first speaker today, Ms. Kaye Liu, IRD of Yunji. Please go ahead, ma'am.

現在，我想把會議交給我們今天的第一位發言人，雲集稅務局的劉凱葉女士。請繼續，女士。

Hello, everyone. Welcome to our fourth quarter 2022 earnings call. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and current market operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors of Yunji and its industry.

大家好。歡迎來到我們的 2022 年第四季度財報電話會議。在我們開始之前，請注意，本次電話會議將包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，這些陳述基於我們當前的預期和當前的市場運營狀況，並且與涉及已知或未知風險的事件有關、雲集及其產業的不確定性等因素。

These forward-looking statements can be identified by terminologies such as will, expect, anticipate, continue or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to our related documents filed with the U.S. SEC.

這些前瞻性陳述可以通過諸如 will、expect、expect、continue 或其他類似表達等術語來識別。有關這些風險和不確定性的詳細討論，請參閱我們向美國證券交易委員會提交的相關文件。

Any forward-looking statements that we make on this call are based on assumptions as of today and are expressly qualified entirely by cautionary statements, risk factors and details of the company's filings with the SEC. Yunji do not undertake any obligation to update these statements except as required under applicable law.

我們在本次電話會議上所做的任何前瞻性陳述均基於截至今天的假設，並完全由警示性陳述、風險因素和公司向美國證券交易委員會提交的文件的詳細信息明確限定。除適用法律要求外，雲集不承擔任何更新這些聲明的義務。

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

有了這個，我現在將轉向雲集董事長兼首席執行官肖尚略。

[Interpreted] Hello, everyone. Welcome to Yunji's Fourth Quarter 2022 Earnings Call.

【解讀】大家好。歡迎來到雲集 2022 年第四季度財報電話會議。

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.

在第四季度，我們成功地經受住了與 COVID 相關的限制以及隨後這些措施的放鬆所帶來的挑戰。在 10 月和 11 月，COVID 控制對我們的訂單量施加了下行壓力。然後在 12 月，隨著該國與 COVID 病例激增作鬥爭，我們的供水能力受到了重大影響。儘管我們觀察到更廣泛的微觀穩定和復甦的規模，但家庭收入和私人消費仍然存在一些槓桿弱點。儘管如此，我們相信，我們優化的成本結構將使我們能夠敏捷和靈活地度過市場停擺期。隨著時間的推移，我們增強的能力和業務彈性使我們處於有利地位，可以在市場復甦時抓住機遇。有了這些堅實的基礎，我們在展望未來時保持謹慎和樂觀。

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.

我想總結一下這一年的常起起落落。 2022 年，我們繼續重申我們在產品和營銷洞察方面的舉措。對於我們的保健品牌，我們推出了一系列涵蓋體重管理、皮膚護理和身體恢復的新鮮產品，以滿足不同消費者的需求。我們研發和生產流程背後的驅動力，專注於創造優質、健康和天然的產品。我們的努力永遠受到用戶的好評。在這種獨特的創新產品的推動下，在一次銷售活動中，有幾款新產品的銷售額超過了 1000 萬元人民幣。雲集醫療的這種心態，也在不斷地逐漸形成。

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.

談到我們的護膚品牌 SUYE。通過更新和重新調整我們的內容營銷和自有品牌推廣計劃，我們進一步發展和加強了公共交通品牌。利用社交媒體和我們自己的用戶社區，我們通過生成吸引註意力的有用內容來促進用戶互動，從而進一步提升用戶體驗和我們品牌的影響力。

For our (inaudible) 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.

對於我們的（聽不清）產品選擇，我們成功推出了升級後的雲集精選質量認證體系，這是我們以美食品類為主的美食雲集戰略的一個組成部分。與我們分享的消費者庫存的嚴格認證都是最高質量的。在最近推出的一年裡，我們的平台積累了廣泛的深受用戶喜愛的產品，這些產品經常被我們的用戶回購。真真旗艦級雲集精選認證產品，2022年我們的回購率達到了驚人的81.8%。

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.

讓我們仔細看看我們的營銷工作。我們不斷創新和完善我們的垂直社區服務體驗。同時，我們推出了額外的增值服務。例如，我們通過向會員提供專業的房屋信息和符合他們忠誠度和滿意度的營養建議來提高會員的福利。在此基礎上，我們將消費者營銷工具從圖形營銷內容升級為短視頻格式，使高價值內容呈指數級增長。

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.

通過將這些工具與我們使共享更方便的創新功能相結合，我們創造了更高的品牌知名度，並使我們的服務經理能夠更有效、更準確地推廣產品。

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 (inaudible) 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.

進一步展望 2023 年，我們已經在產品和營銷方面進行了廣泛的戰略規劃。在產品方面，我們正在見證一種涉及消費的趨勢。我們正在增加越來越多的電子商務公司，正在競爭（聽不清）培養消費者購買低價產品的心態。另一方面，消費者普遍對價格更加敏感，消費更加謹慎，即使他們要求更高品質的產品和獲得物有所值的體驗。

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.

在此背景下，我們相信我們的自有品牌戰略能夠提供超越低價的獨特消費體驗。隨著第四季度 COVID 相關限制的放寬，消費者變得更加註重健康，並相應地增加了他們在健康類別上的支出。順應這些趨勢，今年我們著重探索保健和營養療法類別，以進一步提升我們自有品牌產品的聲明。迄今為止，我們的資產取得了積極的成果，保健產品占我們總銷售額的比例有所增加。重要的是，我們的傳統產品和新推出的產品都受到了用戶的歡迎，使我們保持了健康的利潤率增長。

As previously mentioned, the recovery of consumption is (inaudible) process. And we have seen the travel sector rebound most rapidly. On the marketing channel side, our goal for (inaudible) 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 (inaudible) meeting in Changsha.

如前所述，消費的恢復是（聽不清）過程。我們看到旅遊業反彈最快。在營銷渠道方面，我們（聽不清）的目標是擴大渠道滲透並建立更多人與人之間的聯繫。一年過去了，因為單一的限制，我們很少舉辦線下促銷活動。這一點，再加上能夠參加這些活動的銷售經理數量有限，影響了我們的消費者心態和品牌知名度。隨著外部形勢的恢復，我們恢復了線下營銷活動的計劃。例如，2 月份，我們在長沙單獨召開了一次（聽不清）會議。

During the meeting we (inaudible) 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 (inaudible) 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 (inaudible) stores where consumers can explore and enjoy our products.

在會議期間，我們（聽不清）推出了我們新產品系列中的項目。我還藉此機會與一些出席的服務經理和模特進行了一對一的討論。目前，我們正在通過運行（聽不清）100 天的線下促銷活動來進一步激發我們的線下營銷。與此同時，我們將通過推出更多線下（聽不見）商店，讓消費者探索和享受我們的產品，從而吸引公眾流量並提高我們預科品牌的知名度。

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.

我們的服務經理人數現已增長到110,000人。我們不斷努力改善服務經理的管理，為他們提供更方便、更及時的服務。因此，我們正在開發更多方便的工具和功能，實施提高效率的技術，並提高他們在內部獲得的支持水平。

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.

2023年是轉型之年，也是充滿機遇的一年。我們將陪伴客戶每一步遊玩，助力他們順利度過後疫情時代。同時，我們將支持和幫助我們的服務經理在專業零售行業獲得新的機會。

With that, I will turn the call over to Mr. Zhang, our Vice President of Finance, to go through the financial results.

有了這個，我將把電話轉給我們的財務副總裁張先生，以了解財務結果。

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.

謝謝你，上略。大家好。在我查看我們的財務業績之前，請注意，除非另有說明，否則以下備註中的所有數字均以人民幣計算，所有比較和百分比變化均按年計算。我們在第四季度面臨動蕩的宏觀環境，10 月和 11 月與流行病相關的限制以及 12 月放寬後的 COVID 傳播。在大流行中航行，我們在繼續完善產品選擇、開發自有品牌、優化產品組合和探索新商機的過程中獲得了寶貴的經驗。重要的是，本季度我們的重複購買率增加到 81.8%，毛利率增加到 40.9%。

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.

同時，我們適應宏觀環境，進一步優化成本結構，堅持審慎的成本控制策略。由於這些努力，我們顯著提高了效率，運營費用同比下降了 22%。我們強大的現金狀況和健康的財務狀況為我們業務的進一步發展奠定了基礎。

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.

現在讓我們仔細看看我們的財務狀況。總收入為人民幣 2.89 億元，而一年前為人民幣 4.71 億元。商品銷售收入為人民幣 2.41 億元，我們的市場業務收入為人民幣 4300 萬元。這一下降主要是由於我們持續改進所有類別的產品選擇並優化我們對供應商和商家的選擇導致近期銷售額下降的戰略，以及在 COVID-19 大流行期間消費者消費信心的變化也促成了減少。

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.

儘管存在這些挑戰，我們仍將毛利率保持在 40.9% 的穩定水平，而一年前為 39.6%。這是客戶對我們自有品牌的持續忠誠度和有效的產品策展策略的結果。

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.

現在讓我們來看看我們的運營費用。履行費用為人民幣 3200 萬元，而一年前為人民幣 4700 萬元。這主要是由於商品銷售下降導致倉儲和物流費用減少。銷售和營銷費用為人民幣 5900 萬元，而一年前為人民幣 7800 萬元。這主要是由於人員結構要求導致人員成本減少、會員管理費減少以及市場業務平台推廣費用減少。

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.

技術和內容支出為 1700 萬元人民幣，而一年前為 2600 萬元人民幣。減少的主要原因是人員配置結構分配和雲服務成本降低導致人事成本減少。一般和行政費用為人民幣 4500 萬元，而一年前為人民幣 4400 萬元。

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.

第四季度的總營業費用從 2021 年同期的 1.96 億元人民幣減少到 1.53 億元人民幣。我們錄得營業虧損 3300 萬元人民幣，而一年前的營業收入為 400 萬元人民幣。淨虧損為人民幣 3800 萬元，而一年前的淨利潤為人民幣 5800 萬元，而我們調整後的淨虧損為人民幣 3100 萬元，而去年同期的調整後淨利潤為人民幣 7100 萬元。歸屬於普通股股東的每股基本及攤薄淨虧損均為人民幣0.02元，而2021年同期歸屬於普通股股東的每股基本及攤薄淨收益為人民幣0.03元。

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.

繼續流動性。截至 2022 年 12 月 31 日，我們資產負債表上的現金和現金等價物、受限制現金和短期投資總計人民幣 6.69 億元，而截至 2022 年 9 月 30 日為人民幣 5.71 億元。第四季度，我們優化運營，優化營運資金現金流。我們的流動資產足以支付我們的應付義務，我們的資產負債表上沒有任何長期積壓或債務。

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.

展望未來，我們將繼續培育我們的自有品牌產品系列，並推出更多具有強大回購潛力和客戶同行的新穎產品。在應對當前宏觀挑戰的過程中，我們將進一步優化成本結構，同時探索 2023 年消費復甦驅動的新機遇。我們相信，我們富有彈性的商業模式和創新戰略將為我們的股東帶來長期價值。

This concludes our prepared remarks for today. Operator, we are now ready to take questions.

我們今天準備好的發言到此結束。接線員，我們現在準備好接受提問了。

(Operator Instructions) And our first question today comes from [Ethan Yee] at First Trust China.

（操作員說明）我們今天的第一個問題來自 First Trust China 的 [Ethan Yee]。

We see that there are several competitors in the market starting to engage in subsidy work. I'm just curious about what rings view on this? And would you consider entering the RMB 1 billion specific campaign like Jingdong and (inaudible) in the future?

我們看到市場上有幾家競爭者開始從事補貼工作。我只是好奇戒指對此有何看法？以後會不會考慮像京東和（聽不清）那樣進入10億人民幣的專項活動？

Sorry, let me quickly translate this question. (foreign language).

對不起，讓我快速翻譯一下這個問題。 （外語）。

[Interpreted] Firstly, the consumer purchasing power is still a slowing recovery and the tendering subsidy program can indeed bring tangible benefits to consumers. We acknowledge the value of the subsidies to consumer market, especially in some standard product categories such as mobile phones and electronics and some imposed consumptions in (inaudible).

【解讀】首先，消費者購買力仍在緩慢回升，招標補貼確實能給消費者帶來實實在在的好處。我們承認補貼對消費市場的價值，特別是在一些標準產品類別，如手機和電子產品以及一些強加消費（聽不清）。

And the price is, of course, very important element in consumption decisions. But the demand for product quality, customer service and production features still is quite important and strong.

當然，價格是消費決策中非常重要的因素。但對產品質量、客戶服務和生產特性的需求仍然非常重要和強烈。

We don't believe in blindly (inaudible) prices. Our goal is to establish a mindset among our consumers that our products are not only affordable, but also unique with high quality. Rather than offering client subsidies, we focus on providing value-added services and maintaining the quality of our products, so that our customers feel that their purchases are worth it.

我們不相信盲目（聽不見）的價格。我們的目標是在消費者中樹立一種心態，即我們的產品不僅價格實惠，而且品質獨特。我們不提供客戶補貼，而是專注於提供增值服務和保持產品質量，讓我們的客戶覺得他們的購買物有所值。

And actually, we believe the initiatives of the government is more important. That is to have the transition from high-speed development to high-quality development.

實際上，我們認為政府的舉措更為重要。即實現從高速發展向高質量發展的轉變。

We have a variety of private labels in healthy food, beauty and gourmet food categories complemented by professional vertical committees for one-stop shopping and marketing. This gives us a strong cost control and our operational capabilities over product quality, pricing and services. We provide users with a high value experience without relying on tendering subsidy. Thank you for your question.

我們在健康食品、美容和美食類別中擁有各種自有品牌，並輔以專業的垂直委員會，提供一站式購物和營銷服務。這使我們在產品質量、定價和服務方面具有強大的成本控制能力和運營能力。我們在不依賴招標補貼的情況下，為用戶提供高價值的體驗。謝謝你的問題。

Ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the conference back over to management for any closing remarks.

女士們，先生們，我們的問答環節到此結束。我想將會議轉回管理層聽取任何閉幕詞。

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

感謝您今天加入我們。如果您有任何其他問題，請隨時與我們聯繫，我們期待在下個季度與您交談。再見。

Thank you. This concludes today's conference call. You may now disconnect your lines, and have a wonderful day.

謝謝。今天的電話會議到此結束。您現在可以斷開線路，度過美好的一天。

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

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]