BEIJING, Jan. 10, 2024 (GLOBE NEWSWIRE) -- Secoo Holding Limited ("Secoo" or the "Company") (NASDAQ:SECO) today announced that on January 5, 2024, it received an additional delinquency letter from The Nasdaq Stock Market LLC ("Nasdaq"), notifying the Company that (i) the Company is not in compliance with Nasdaq's continued listing requirements set forth in Nasdaq Listing Rule 5250(c)(1) due to the Company's failure to file its Form 6-K containing an interim balance sheet and income statement as of the end o ...

Financial Performance - Total revenues decreased by 12.1% from RMB 6,845.6 million in 2019 to RMB 6,019.7 million in 2020, and further decreased by 48.0% to RMB 3,131.6 million (US$491.4 million) in 2021 due to the impact of the COVID-19 pandemic[484]. - Total GMV decreased by 35.6% from RMB 15,768.5 million in 2020 to RMB 10,162.5 million (US$1,594.7 million) in 2021, primarily due to the impact of the COVID-19 pandemic[488]. - Offline GMV decreased by 73.1% from RMB 706.6 million in 2019 to RMB 190.1 million in 2020, and further decreased by 72.4% to RMB 52.5 million (US$8.2 million) in 2021[488]. - Revenue from mobile applications decreased from RMB 5,268.2 million in 2019 to RMB 4,571.3 million in 2020, and further decreased to RMB 2,405.7 million (US$377.5 million) in 2021[489]. - Total number of orders decreased from 4,040.7 thousand in 2019 to 2,910.7 thousand in 2021 due to the slowdown in demand and delayed logistics services caused by the COVID-19 pandemic[487]. - Merchandise sales for the year ended December 31, 2021, were RMB 2,986,044 thousand, a decrease of 48.5% from RMB 5,790,248 thousand in 2020[490]. - Marketplace and other services revenue for 2021 was RMB 145,580 thousand, down 36.6% from RMB 229,433 thousand in 2020[490]. - Total revenue for the year ended December 31, 2021, was RMB 3,131,624 thousand, representing a decline of 47.9% compared to RMB 6,019,681 thousand in 2020[490]. Business Strategy and Operations - Secoo generated 94.9%, 98.8%, and 99.5% of its total GMV through its online platform in 2019, 2020, and 2021, respectively[309]. - The company formed strategic partnerships with major brands such as Prada and Versace to expand its luxury product offerings and enhance its market presence[303]. - Secoo's strategic alliances with leading partners in the luxury goods sector are aimed at increasing brand awareness and diversifying product portfolios[307]. - The company has expanded its product offerings to include high-end lifestyle services since 2014, optimizing customer shopping experiences and diversifying revenue sources[307]. - The company has established direct product sourcing relationships with a wide range of global brands, enhancing its presence in the China market and providing consumers with convenient access to luxury products at attractive prices[343]. - The company has engaged in various marketing initiatives, including collaborations with popular entertainers and artists, to enhance brand awareness and customer insights in the high-end consumption market[351]. - The company has developed a sophisticated business intelligence system that enables effective collection and analysis of customer behavioral data, supporting targeted marketing and product recommendations[357]. - The company leverages big data technology to create customized product recommendations, enhancing customer segmentation and personalization efforts[359]. - The company has implemented a service-oriented architecture supported by cloud-based big data technology, improving operational efficiency and customer experience[356]. Customer Experience and Engagement - Secoo opened four offline experience centers in popular shopping destinations and central business districts in China and Malaysia to enhance brand presence and customer experience[303]. - Secoo's mobile application features personalized services, allowing customers to customize payment and delivery preferences, enhancing the shopping experience[314]. - The company launched live streaming shopping programs in collaboration with brands, improving user engagement and shopping experience[316]. - The omni-channel commerce solutions allow customers to receive orders from physical stores or pick them up at conveniently located stores, enhancing customer experience[321]. - The after-sales maintenance service is considered among the best in the e-commerce industry in China, covering watches, leather products, and jewelry[324]. - The membership program offers various exclusive benefits, including discounts, cleaning services, and priority access to new products, enhancing customer loyalty[327]. Logistics and Infrastructure - The company has established a comprehensive logistics network with centers in Beijing, Yichun, Hainan, Hong Kong, and Milan, ensuring nationwide coverage for deliveries[338]. - The company operates four offline experience centers with a total area of approximately 4,909 square meters and over 25 sales representatives as of December 31, 2021[320]. - The company plans to selectively launch new offline experience centers in high-demand luxury product markets, including third- and fourth-tier cities[320]. - The company utilizes a warehouse management system (WMS) and an enterprise resource planning (ERP) system to efficiently manage inventories and track sales data, minimizing excess inventory[360]. Regulatory and Compliance - The E-commerce Law, effective January 1, 2019, strengthens regulations on consumer protection, personal data protection, and intellectual property rights for e-commerce operators[390]. - The Data Security Law, effective September 1, 2021, mandates data processing to be conducted legitimately and introduces a classification system for data protection based on its importance[399]. - The Cybersecurity Review Measures, effective February 15, 2022, require network platform operators with over one million users' personal information to apply for a cybersecurity review before listing on foreign stock exchanges[403]. - The Anti-Terrorism Law mandates telecommunication and internet service providers to implement network security measures and report any discovered terrorism information[397]. - The Cyber Security Law, effective June 1, 2017, requires network operators to safeguard network security and maintain the integrity of network data[398]. - The Measures for the Supervision and Administration of Online Trading, effective May 1, 2021, impose stricter obligations on online trading operators regarding consumer rights and transaction safety[389]. - The Regulations on Protection of Critical Information Infrastructure require operators to establish a cybersecurity protection system and hold accountability for security breaches[404]. - The Interim Measures for Seven-day Unconditional Return of Online Purchased Goods entitle customers to return goods without cause, with certain exceptions[389]. - The Personal Information Protection Law took effect on November 1, 2021, integrating various rules on personal information rights and privacy protection[417]. - The law mandates that personal information processing must have a clear purpose and be limited to the minimum necessary scope to avoid excessive collection[417]. Intellectual Property - As of December 31, 2021, the company owned 31 patents, 622 registered trademarks, and copyrights to 38 software programs, indicating a strong intellectual property portfolio critical to its success[363]. - The company has registered 38 computer software copyrights in China as of December 31, 2021, reflecting its commitment to protecting intellectual property[430]. - The PRC Trademark Law allows for damages of up to RMB 5 million for trademark infringement, emphasizing the importance of protecting registered trademarks[427]. Employment and Labor - The company had a total of 509 full-time employees as of December 31, 2021, with 163 in business development, sales, and marketing, indicating a focus on maintaining a skilled workforce[366]. - The company participates in various employee social security plans mandated by PRC law, contributing specified percentages of salaries and bonuses[368]. - The PRC Labor Contract Law mandates that employers must enter into written contracts with employees within one year, or face penalties[431]. - The company must comply with regulations requiring participation in employee benefit plans, including social insurance and housing provident funds[434]. Investment and Financing - In June 2020, Secoo issued 10,204,082 Class A ordinary shares to Qudian for a total of up to US$100.0 million, reflecting a per share purchase price of US$9.80[295]. - In April 2022, Secoo issued a two-year guaranteed secured note to Great World with a principal amount of US$217.7 million (equivalent to RMB1,387.6 million) to refinance the Original Note[296]. - The company has completed the filing procedures for its employee stock incentive plan in 2017[459]. - The loan agreements with shareholders of Beijing Auction amount to an aggregate of RMB 1 million, intended exclusively for initial capitalization[471]. Market Trends and Future Outlook - The company anticipates that the retail market for upscale products will continue to evolve, necessitating ongoing innovation to remain competitive[364]. - The company has experienced significant growth since its inception in 2011, although this growth was adversely impacted by the COVID-19 pandemic[481]. - The company’s ability to attract and retain customers, manage supplier relationships, and control marketing expenses are key factors affecting its operating results[482].

Financial Performance - Total revenues for the year ended December 31, 2020, were RMB 6,019,681, a decrease of 12% compared to RMB 6,845,580 in 2019[39] - Gross profit for the year ended December 31, 2020, was RMB 881,396, representing a gross margin of approximately 15%[39] - Net loss attributable to ordinary shareholders for the year ended December 31, 2020, was RMB 71,864, compared to a net income of RMB 154,423 in 2019[39] - The company recorded a net income of RMB 155.5 million in 2018 and RMB 161.7 million in 2019, followed by a net loss of RMB 87.4 million in 2020[52] - Total revenues decreased by 12.1% from RMB 6,845.6 million in 2019 to RMB 6,019.7 million (US$ 922.6 million) in 2020[165] - Offline GMV decreased by 73.1% from RMB 706.6 million in 2019 to RMB 190.1 million (US$ 29.1 million) in 2020[165] Assets and Liabilities - Total assets increased from RMB 1,045,816 in 2016 to RMB 5,342,423 in 2020, representing a growth of approximately 411%[40] - Cash and cash equivalents decreased from RMB 1,034,385 in 2018 to RMB 639,932 in 2020, a decline of about 38%[40] - Total liabilities decreased from RMB 3,335,412 in 2019 to RMB 3,025,197 in 2020, a reduction of approximately 9.3%[40] Corporate Structure and Regulatory Risks - The company faces significant risks related to its corporate structure and regulatory environment in China, which could materially affect its operations and financial performance[23] - The PRC government's oversight and control over foreign investment could significantly limit the company's ability to offer securities to investors[23] - The company operates through affiliated PRC entities due to restrictions on foreign ownership in certain industries[189] - The company relies on contractual arrangements for operational control over its VIEs, which may not be as effective as direct ownership[193] - There are substantial uncertainties regarding the interpretation and application of current and future PRC laws, which could impact the company's ability to consolidate financial results from its VIEs[192] Cybersecurity and Data Protection - The company must fulfill certain obligations under PRC cybersecurity laws, including storing personal information within China, which may impact its operations[32] - The company faces significant risks related to cybersecurity, including potential attacks that could lead to system interruptions and negatively impact customer satisfaction and revenue[111] - Compliance with evolving PRC laws and regulations regarding cybersecurity and data protection is essential, with non-compliance potentially resulting in legal proceedings and increased operational costs[112] - The PRC Cybersecurity Law mandates that personal information and important data must be stored within China, imposing additional security obligations on operators of critical information infrastructure[115] Market and Competitive Environment - The retail market for upscale products in China is highly competitive, with threats from both traditional and online retailers, which may impact market share and revenues[66] - The growth and profitability of the upscale product retail industry in China are sensitive to macroeconomic changes, including disposable income levels and consumer confidence, which could adversely affect revenues[93] - The effectiveness of marketing strategies is crucial, as failure to adapt to changing consumer preferences could lead to a decline in market share and revenues[87] Operational Challenges - The company faces challenges in recruiting and retaining qualified personnel, particularly in a labor-intensive fulfillment infrastructure, which may impact business operations[104] - Effective inventory management is crucial, as misjudging customer demand could result in excessive inventory and financial losses[83] - The company does not carry business interruption insurance, making it vulnerable to operational disruptions from natural disasters or other events[62] Future Outlook and Strategic Initiatives - The company plans to expand its fulfillment infrastructure, which currently includes logistics centers in Beijing, Yichun, Hainan, Hong Kong, and Milan[61] - Future profitability will depend on increasing gross margins and managing product mix effectively[52] - The company anticipates continued investment in fulfillment infrastructure and technology to support growth[52] - The ability to attract new customers and retain existing ones is critical for future growth, influenced by changing consumer preferences[59] Shareholder and Governance Issues - Mr. Richard Rixue Li, the founder and CEO, beneficially owns 18.6% of outstanding shares, giving him significant influence over corporate decisions[154] - Due to the voting power disparity, Mr. Li controls 82.0% of the aggregate voting power, limiting other shareholders' influence on corporate matters[155] Economic and External Factors - Changes in U.S. and international trade policies may adversely impact the company's business and operating results[156] - The COVID-19 pandemic has caused significant disruptions to operations, including temporary closures and remote working arrangements[161] - A severe or prolonged downturn in the global economy could materially and adversely affect the company's financial condition[169]

Financial Data and Key Metrics Changes - The company reported a GMV growth of 12.5% year-over-year to approximately RMB4.12 billion in Q3 2020, compared to RMB3.66 billion in Q3 2019 [6][19] - Net income for Q3 2020 was RMB28.8 million, representing a significant increase of 252.5% quarter-over-quarter [19] - Total revenue for Q3 2020 was approximately RMB1.37 billion, down from RMB1.94 billion in Q3 2019, primarily due to changes in business contribution and supply chain issues [20] - Gross profit decreased to approximately RMB231 million in Q3 2020 from RMB329 million in Q3 2019, attributed to lower revenues and increased discounts [21] - Operating expenses decreased by 22.3% to RMB182 million in Q3 2020 from RMB235 million in Q3 2019 [21] Business Line Data and Key Metrics Changes - The total number of orders increased by 7.1% to approximately 1.11 million in Q3 2020 from around 1.04 million in Q3 2019 [20] - Fulfillment expenses decreased by 16.3% to RMB41.5 million in Q3 2020 from RMB49.6 million in Q3 2019 [21] - Marketing expenses saw a significant decrease of 47.6% to RMB58.1 million in Q3 2020 from RMB111 million in Q3 2019 [22] Market Data and Key Metrics Changes - The company maintained momentum during traditional e-commerce events, with GMV from presales of top-selling products improving by 40% year-over-year [9] - Sales for brands like Chanel and Artemest grew over 100% year-over-year, while Bulgari, York, and Mongery saw over 30% growth each year [9] Company Strategy and Development Direction - The company aims to leverage its technological capabilities in AI, Big Data, and cloud services to capture opportunities in the booming e-retail market [6] - Secoo is focusing on building relationships with key brands and enhancing its high-end product offerings, including luxury liquor [10][12] - The company plans to enhance its livestreaming capabilities to attract more luxury consumers and increase user traffic [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing the potential of China's online high-end consumer market in the long run, despite challenges posed by the COVID-19 pandemic [19] - The company will continue to invest in building a sophisticated value chain and enhancing customer services to provide standardized services for consumers and partners [17] Other Important Information - As of September 30, 2020, the company had cash, cash equivalents, and restricted cash of RMB794 million [24] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions and turned the call back to the company for closing remarks [25]

Secoo Holding Limited (NASDAQ:SECO) Q2 2020 Earnings Conference Call September 3, 2020 8:00 AM ET Company Participants Jingbo Ma - Board Secretary Richard Li - Chairman of the Board and Chief Executive Officer Shaojun Chen - Chief Financial Officer Conference Call Participants Operator Hello, ladies and gentlemen. Thank you for standing by for Secoo Holding Limited's Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded. I will now turn the call ove ...

Secoo Holding Limited (NASDAQ:SECO) Q3 2019 Earnings Conference Call December 5, 2019 8:00 AM ET Company Participants Jingbo Ma - IR Richard Li - Founder, Chairman and CEO Shaojun Chen - CFO Conference Call Participants Ken Chong - Jefferies Hugo Shen - Macquarie Operator Hello, ladies and gentlemen. Thank you for standing by for Secoo Holding Limited Third Quarter 2019 Earnings Conference Call. [Operator Instructions] After management's prepared remarks, there will be a question-and-answer session. Today's ...