Financial Performance - Total net revenue for Q3 2022 was RMB 1,741.3 million (USD 244.8 million), a decrease of 8.3% year-over-year [6]. - Service revenue reached RMB 1,244.2 million (USD 174.9 million), an increase of 3.8% year-over-year [6]. - Gross Merchandise Volume (GMV) totaled RMB 18,632.1 million, representing a year-over-year increase of 15.9% [10]. - Online store operations generated RMB 845.0 million (USD 118.8 million) in revenue, accounting for 49% of total revenue, down 19% year-over-year [16]. - Product sales revenue decreased by 28.9% to RMB 497.1 million (USD 69.9 million) due to optimization of the distribution business and weak consumer demand in China [19]. - Total net revenue for the third quarter of 2022 was RMB 1,741.3 million (USD 244.8 million), representing an 8% decrease compared to RMB 1,898.8 million in the same period of 2021 [16]. - The company reported a net loss attributable to ordinary shareholders of RMB 168.9 million (USD 23.7 million), an improvement from RMB 292.5 million in the same period last year [6]. - Operating loss improved to RMB 26.3 million (USD 3.7 million), with an operating loss margin of 1.5%, compared to 8.2% in the same period last year [6]. - Non-GAAP operating profit was RMB 16.9 million (USD 2.4 million), compared to a non-GAAP operating loss of RMB 84.3 million in the same period last year [6]. - The company reported a comprehensive loss of RMB 73.375 million for the three months ended September 30, 2022, compared to a comprehensive loss of RMB 295.907 million in the same period of 2021, marking a 75.2% reduction [59]. Cash and Investments - Cash, cash equivalents, restricted cash, and short-term investments amounted to RMB 2,899.3 million (USD 407.6 million) as of September 30, 2022 [7]. - Cash and cash equivalents as of September 30, 2022, were RMB 2,292,079, a decrease from RMB 4,606,545 as of December 31, 2021 [44]. - The company repurchased 0.7 million ADS under its share repurchase plan during the third quarter, totaling approximately USD 6.1 million [28]. Company Developments - The company completed a dual primary listing on the Hong Kong Stock Exchange and NASDAQ on November 1, 2022, enhancing shareholder flexibility [11]. - The company aims to accelerate its transition to a technology-driven, omnichannel operator, supported by the recent acquisition of GAP in Greater China [11]. - The company plans to hold a conference call on November 29, 2022, to discuss earnings [29]. Non-GAAP Financial Measures - The company utilizes several non-GAAP financial measures to assess its business performance, including operating profit (loss) and net profit (loss) [32]. - Non-GAAP operating profit (loss) is defined as operating profit (loss) excluding stock-based compensation and amortization of intangible assets from business acquisitions [33]. - Non-GAAP net profit (loss) is defined as net profit (loss) excluding stock-based compensation, amortization of intangible assets, unrealized investment gains (losses), and other specified items [33]. - The company believes that non-GAAP financial measures provide useful information to investors for understanding and evaluating its current operating performance and future prospects [35]. - Non-GAAP financial measures may differ from those used by other companies, which could limit comparability [36]. - The company encourages a comprehensive review of its financial information rather than relying on a single financial measure [37]. Forward-Looking Statements - Forward-looking statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, indicating inherent risks and uncertainties [39]. - Factors that may cause actual results to differ from forward-looking statements include operational performance, business strategies, and market conditions [39]. - The company does not undertake any obligation to update forward-looking statements except as required by applicable law [39]. Shareholder Information - The company had a total of 161,583,506 shares issued and outstanding as of September 30, 2022, compared to 195,493,754 shares as of December 31, 2021 [50]. - The basic and diluted net loss per ordinary share for the three months ended September 30, 2022, was RMB 0.96, compared to RMB 1.33 for the same period in 2021, indicating a reduction of 27.8% [59]. - The weighted average number of ordinary shares used in calculating basic and diluted net loss per share for the three months ended September 30, 2022, was 176,164,018, down from 219,336,549 in 2021 [65].
宝尊电商-W(09991) - 2022 Q3 - 季度财报