Boqii Holding Limited Class A Ordinary Shares

Good day, ladies and gentlemen. Thank you for standing by, and welcome to BOCHE's Fiscal 2021 Fourth Quarter and Full Year 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. I will now turn the conference over to Mandy Lowe, BOCHE's IR Manager.

Thank you, Operator, and hello, everyone. Welcome to Borchers Fiscal 2021 Fourth Quarter and Four-Year Earnings Conference Call. Joining us today are Ms. Lisa Tang, Co-CEO and CFO, Mr. Tai Fang, Chief Strategy Officer, and Mr. Loyal Dai, our Financial Director. We released our results earlier today. The press release is available on the company's IR website at ir.ochi.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 involving heavy 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 are 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 also note that certain financial measures that we use on the call, such as adjusted net loss, adjusted net loss margin, EBITDA, and EBITDA margin, are expressed on a non-GAAP basis. Our GAAP results and reconciliations of GAAP to non-GAAP measures can be found in our earnings press release. Also, please be reminded that unless otherwise stated or figures mentioned during the conference call are in Chinese renminbi. With that, let me now turn the call over to our co-CEO and CFO, Lisa Tang. Please go ahead, Lisa.

Thank you, Mindy, and thanks everyone for joining the call. Physical 21 was an exceptional year, and we paid more attention to the core demands and pain points of parents, as well as the core values and strategies of Boqi, and we achieved encouraging results despite the challenging macro environment. In brand incubation, with the help of accurate traffic and private domain users, we have strengthened the support of emerging brands and middle-sized brands so that pet owners have more choices. We now provide more than 20,000 SKUs and 605 brands on our platform. On the supply chain side, we continue to strengthen the layout of warehouses and logistics. And now we have five large warehouses and three bound warehouses in China. These warehouses will become distribution hubs to meet the needs of pets from food supplies and medical products. including domestic and global pet products. On the operating side, we have continued to reduce the CAC and the fulfillment expenses and significantly improved the customer acquisition efficiency and probability. In the final quarter of fiscal 21, our GMV growth 15.7% year-over-year, reaching RMB 500 and 53.7 million. Our total revenues grew 47.1% year-over-year to RMB 213.4 million. On the user engagement front, our active buyers reached 3.8 million in the fiscal 2021, up 17.4% from 3.3 million in the fiscal 2020. Notably, our users remain highly engaged and our active buyers spent an average of RMB 630 and 35 in fiscal 2021, growth of 33.2% from fiscal 2020. In addition to our strong organic growth, we continued to develop a seamless and satisfying customer journey by building out an extensive portfolio of quality content, products, and services. Earlier in April, we announced a strategic partnership with one of China's top content communities, Kuaishou Technologies. The partnership will generate more content in the pet category, will incubate more care hours, and in general help raise awareness of pet care. Together we can raise awareness of pet care and education for pet parents. This is core to our mission, and we look forward to working with Kuaishou on a variety of initiatives to educate the pet parents, optimize our pet content offering, and further promote our pet ecosystem. Most excitingly, we came even closer to pets and pet parents in May by opening our first flagship offline store in Shanghai. This expands our influence and encourages our customers to stay and experience our ecosystem, online to offline products to services, building our strong digital assets and established pet products purchase platform. This offline shopping experience can give us more opportunities to meet pet parents face to face, resolve their concerns and provide carefree solutions. Looking further down the road, we intend to provide pet services and products via a comprehensive physical store network, which will include directly operating flagship stores and franchised community stores. Now I will turn the call over to the CSO Kaifeng and give you more details on our strategy and financial highlights. Kai, please.