Yunji(YJ)2023-06-02 15:26Financial Data and Key Metrics Changes - Total revenues for Q1 2023 were RMB 179 million, down from RMB 343 million in the same period last year, reflecting a significant decline [16] - Gross margin improved to 47.7% compared to 44.2% a year ago, indicating better cost management and consumer loyalty to private labels [17] - Net loss narrowed by 37.8% to RMB 23 million from RMB 37 million in the previous year, showing improved operational efficiency [19] Business Line Data and Key Metrics Changes - Revenues from merchandise sales were RMB 143 million, while marketplace business revenues were RMB 33 million, indicating a shift in focus towards private label products [16] - The repurchase rate reached 80.2%, demonstrating strong customer retention and loyalty [16] Market Data and Key Metrics Changes - Consumer confidence and spending power have not fully recovered, impacting overall sales performance [17] - The company is adapting to post-COVID consumer trends by focusing on private label product development, particularly in healthcare and nutritional therapy [15] Company Strategy and Development Direction - The company is exploring gourmet food, beauty, and healthcare as new growth areas, integrating these into a community e-commerce service model [5][6] - A new brand center is being established in Hangzhou to enhance brand awareness and incubate private label products [22] - The company is committed to technological innovation, including the development of AI-driven services to improve customer support and community management [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the consumption recovery is gradual, with a focus on enhancing customer loyalty and attracting new users through synergistic online and offline initiatives [20] - The company is optimistic about leveraging post-COVID recovery trends to foster long-term value for shareholders [20] Other Important Information - The company has a strong liquidity position with RMB 568 million in cash and cash equivalents as of March 31, 2023, sufficient to cover its obligations [19] Q&A Session Summary Question: Impact of unstable consumer confidence on business and brand awareness initiatives - Management highlighted the importance of combining online and offline marketing strategies to build trust and enhance customer experience, especially for private labels [21] - A new brand center in Hangzhou will serve as a hub for showcasing private label capabilities and attracting partnerships, with plans to utilize various media channels for promotion [22][23]