Yunji(US:YJ)2019-08-22 20:21Financial Data and Key Metrics Changes - In Q2 2019, the company's GMV increased by 46.4% year-over-year to RMB8.2 billion, while total revenue reached RMB3.07 billion, a decrease from RMB3.26 billion in the same period of 2018 [6][15] - Revenue from merchandise sales was RMB2.73 billion, accounting for 89.1% of total revenues, which decreased by 8.7% year-over-year [15] - The net loss for Q2 2019 was RMB84.5 million, compared to a net income of RMB87.4 million in Q2 2018 [19] Business Line Data and Key Metrics Changes - The marketplace business generated RMB53 million in revenues, representing 1.9% of total revenues, indicating a shift from merchandise sales to a marketplace model [15][16] - The company fulfilled a total of 55 million orders in Q2, with a repurchase rate of 93% among members [26] Market Data and Key Metrics Changes - The marketplace GMV accounted for approximately 25% of total GMV in Q2 2019, with expectations for further growth in the second half of the year [28][30] - The take rate for the marketplace model was 2.5%, with plans to gradually increase this rate while prioritizing member value [31] Company Strategy and Development Direction - The company is focusing on healthy member growth, user retention, and enhancing member value through improved product curation and private label development [24][11] - A strategy to eliminate underperforming brands was implemented, with around 300 brands removed to maintain quality and user satisfaction [25][38] - The company aims to balance the 1P and 3P models, ensuring high-margin products are prioritized under the 1P model while providing a wide selection through the marketplace [30][36] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving higher GMV growth rates in Q3 and Q4, driven by improved member engagement and product offerings [24] - The company plans to leverage its solid cash position to enhance user conversion and cultivate strategic partnerships [20][21] Other Important Information - The total operating expenses increased to RMB798.9 million in Q2 2019, attributed to branding, promotion activities, and improved service manager compensation [18] - The company reported a cash position of RMB2.2 billion as of June 30, 2019, following its IPO [20] Q&A Session Summary Question: Will the sequential growth rate of GMV be higher in Q4? - Management expects GMV growth rates in Q3 to be slightly higher than Q2, with further increases anticipated in Q4 due to enhanced user retention and product offerings [24][25] Question: Can management share user metrics such as order frequency? - The company fulfilled 55 million orders in Q2, with a 93% repurchase rate among members [26] Question: What is the expected proportion of marketplace GMV in the second half? - The marketplace GMV was around 25% of total GMV in Q2, with expectations for continued growth [28][30] Question: What is the take rate for the marketplace model? - The current take rate is 2.5%, with plans to gradually increase it while focusing on member value [31] Question: How is the supply chain restructuring progressing? - The transition from the 1P model to the 3P model is ongoing, with no negative impact on operating margins expected [36] Question: What is the progress of private label products? - The percentage of high-margin private label products decreased from 14% to 12% in Q2 due to the elimination of underperforming brands, but growth is expected in the future [38]