Boqii Holding Limited Class A Ordinary Shares

Good day, ladies and gentlemen. Thank you for standing by and welcome to Boche's December quarter 2020 earnings conference call. Currently, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, we are recording today's call. If you have any objections, you may disconnect at this time. Now, I will turn the call over to Mandy Law, Boche's IR manager. Mandy?

Thank you, operator, and good morning, everyone. Welcome to Co-Chief's December Quarter 2020 Earnings Conference Call. Joining us here today are Mr. Louis Liang, our Chief Executive Officer, Ms. Lisa Tang, Co-Chief Executive Officer and CFO, as well as Mr. Kai Fang, Chief Strategy Officer, and Loyal Dai, our Financial Director, and Minghao Zhou, our VP Capital Market, will also join the Q&A session. We released our results earlier today. The press release is available on the company's IR website at ir.bochi.com, as well as from Newswire Services. A replay of the call will be available on our IR website later today. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the expectations expressed today. Further information regarding this and other risks and uncertainties is included in the company's public filings with the SEC. The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Please note that certain financial measures that we use on this call, such as adjusted net loss, EBITDA, and EBITDA margin, are expressed on a non-GAAP basis. Our GAAP results and reconciliations of GAAP and non-GAAP measures can be found in our earnings press release. Also, please note that unless otherwise stated, all figures mentioned during the conference call are in Chinese RMB. With that, I would now turn the call over to our co-CEO and CFO, Lisa Chang. Please go ahead, Lisa.

Thank you, Mandy, and thanks everyone for joining us on the call. We are pleased to report strong quarterly results with solid operational and financial growth, which demonstrated our dedication to execution and customer bonding. As an omni-channel, verticalized platform for all things pet in China, We are satisfied to needs of pet owners, both big and small, through our diversified business segments, such as Boji Mall, Boji Community, private labels, and membership services. During the reporting period, our total revenue grew 23.2% year-over-year, from RMB 254.1 million to RMB 312.9 million. CNV rose 51.5%, reaching IMB 763.8 million. Our chart plan growth indicates the effectiveness of our ecosystem strategy to more accurately match customers and the merchandises. We continue to provide traffic optimization for brands, no matter for big brands or emerging ones, domestic or imported. We help brands to locate the target customer group that matches their brand and product positioning. In this way, brands no longer need to invest heavily in non-precise traffic, which is exactly the biggest pain point of brands in China now. Our traffic value for brands means that we have deeper moat in the supply chain. In the future, serving brands remain one of the core tasks of 4T. As our supply chain value becomes more recognized, the company will continue to enjoy its competitive edge when we grow our revenue scale and change it into profitability. As we provide more brands and enrich SKUs to our users, in fiscal Q3, active users will percent year-over-year, reaching 1.5 million, while average spending per user reached RMB 504.1, up 25.3 percent year-over-year. Average order size grew 21.3 percent year-over-year, reaching RMB 315.2. We have also improved our operating efficiency. This is natural in the culture with RMB. $13.5 million, a significant improvement compared with RMB $16.8 million in the same period of fiscal 2020. We are on the right track to reach positive operating cash flow, a key milestone on our path to profitability. And now I will turn the call over to our Chief Strategy Officer, Kai Fang. and give you more details on our strategy and financial highlights. Kai.