Financial Data and Key Metrics Changes - Total revenues for Q4 2023 were RMB 149 million, down from RMB 289 million year-over-year [12] - Revenues from merchandise sales were RMB 112 million, while marketplace business revenues were RMB 34 million [12] - Gross margin remained solid at 46.6%, attributed to customer loyalty towards private labels and effective product creation strategies [13] - Net loss was RMB 66 million compared to RMB 68 million in the previous year, with adjusted net loss at RMB 65 million compared to RMB 31 million a year ago [15] - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 552 million as of December 2023, down from RMB 669 million a year earlier [16] Business Line Data and Key Metrics Changes - The company focused on refining its product range and optimizing its supplier and merchant network, which impacted short-term sales [12] - Fulfillment expenses decreased to RMB 25 million from RMB 32 million year-over-year, driven by lower warehousing and logistics costs [13] - Sales and marketing expenses were reduced to RMB 29 million from RMB 59 million, primarily due to a decline in member management fees and business promotion expenses [14] Market Data and Key Metrics Changes - The e-commerce market experienced intense price competition, with major platforms adopting low-price strategies [4] - Despite market pressures, the company maintained a stable average order value due to its curated product selection [5] Company Strategy and Development Direction - The company aims to enhance brand image and explore diverse marketing avenues while focusing on curated product selection and cost-effectiveness [9] - A new healthcare product line was launched, generating sales exceeding RMB 80 million upon launch [8] - The company is integrating AI into operations to improve customer service and support service managers [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by low-price strategies in the market but emphasized the importance of unique product offerings and customer loyalty [19] - The company is committed to improving inventory management and cash flow to support long-term strategic objectives [16] Other Important Information - The company has developed a range of private label products and upgraded its medicinal product lineup, focusing on popular ingredients like collagen and probiotics [6] - Customer service improvements are being made through professional training and enhanced service policies [8] Q&A Session Summary Question: Impact of new consumer-biased policies from major e-commerce platforms - Management believes that product quality and unique offerings are more important than low pricing strategies, and they maintain a low refund rate due to effective user education [19]
Yunji(YJ) - 2023 Q4 - Earnings Call Transcript