Boqii Holding(US:BQ)2023-06-27 14:19Financial Data and Key Metrics Changes - The company's full year revenue was RMB1.09 billion, down by 8% year-over-year due to lingering COVID-19 disruptions and market conditions [13] - Non-GAAP net loss for the year was RMB70.7 million, representing a 41.7% reduction year-over-year [15] - The net loss narrowed to RMB106 million from RMB132.8 million in the previous year, a decrease of 20.2% [15] Business Line Data and Key Metrics Changes - The private label's GMV increased by 6.2% year-on-year, with revenue rising by 19.2% year-on-year despite a weak second half [10] - The gross profit margin improved to 21.4%, a modest enhancement of 90 basis points year-on-year [10] - The contribution from private label revenue increased from 15.4% to 19.9% [10] Market Data and Key Metrics Changes - The number of users increased by 16.2% year-on-year to over 5.8 million, with a significant reduction in churn rate by 57.2% year-on-year [9] - Fulfillment expenses decreased to RMB126.3 million from RMB134 million last year, while fulfillment margin increased from 9.2% to 9.8% [14] Company Strategy and Development Direction - The company aims to enhance its value proposition and create a closed-loop community by improving its supply chain from production to distribution [11] - Future plans include increasing private label revenue to around 30% and gross profit margin to exceed 35% [22][25] - The company is focusing on organic development and M&As to drive business growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a rebound in consumer sentiment post-COVID and expects revenue growth to surpass last year's levels [19] - The company is optimistic about improving cash flow and operational data supporting long-term business sustainability [24] Other Important Information - The company recorded an impairment of goodwill of RMB40.7 million in fiscal year 2023 [15] - As of March 31, 2023, the company had RMB160 million in cash and cash equivalents, with a significant decrease in net operating cash outflow from RMB147 million in 2022 to RMB52.3 million in 2023 [16] Q&A Session Summary Question: What is the forecast for fiscal 2024 revenue? - Management expects revenue growth to be higher than last year following the recovery from COVID-19 [19] Question: What is the reason for the narrowing net loss? - The net loss decreased due to a reduction in impairment of goodwill and improved operational efficiency [20] Question: What are the plans for private labels and future forecasts? - The company plans for private label revenue to exceed 30% and gross profit margin to exceed 35% in the future [22] Question: How long can the current cash flow maintain business operations? - The company believes the improved cash flow will support operations for a long time, with RMB160 million in cash and a significantly reduced operating cash outflow [24]