GigaCloud(GCT) - 2024 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a total of 40,990,115 ordinary shares issued and outstanding, comprising 32,913,383 Class A ordinary shares and 8,076,732 Class B ordinary shares [9] - The total number of votes attaching to all shares in issue and entitled to vote at the meeting is 113,680,703 [9] - A total of 96,098,712 votes were represented at the meeting, which is more than one third of the total votes [10] Business Line Data and Key Metrics Changes - The company is making progress on the integration of Noble House and expanding its warehousing infrastructure [31] Company Strategy and Development Direction - The company is focused on maintaining its relationship with KPMG Huazhuang LLP as its independent auditor due to operational cost benefits and legacy reasons [16][17] - The company is currently evaluating its operational structure and considering potential changes in its auditing practices [18][19] Management's Comments on Operating Environment and Future Outlook - Management indicated that operations are currently normal and there are no material updates that need to be reported publicly [31] - The company has declared all related party transactions in compliance with SEC laws and ethical accounting rules [33] Other Important Information - The company passed two proposals during the meeting, including amendments to its memorandum and articles of association and the appointment of KPMG as its independent auditor for the fiscal year ending December 31, 2024 [26][28] Q&A Session Summary Question: Why is the company using a Chinese-based auditor as the independent registered accountant? - Management explained that the company is technically a Cayman company and the choice of KPMG Huazhuang is a legacy decision based on operational cost benefits and the majority of the accounting team being based in China [16][17] Question: Update on operations? - Management stated that they are making progress on the integration of Noble House and expanding warehousing infrastructure, with no material updates to report [31] Question: Related party transactions? - Management confirmed that all related party transactions have been declared in accordance with SEC laws and ethical accounting rules, and additional information can be found in recent public statements [33]