Boqii Holding Limited Class A Ordinary Shares

Good day, ladies and gentlemen. Thank you for standing by, and welcome to BOCHE's fourth quarter and fiscal year 2022 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 floor over to Mandy Liu, BOCHE's IR Manager. Mandy?

Thank you, Operator, and good morning, everyone. Welcome to Boqi's fourth quarter and fiscal year 2022 earnings conference call. Joining us today are Mr. Louis Liang, Chairman and CEO, Ms. Lisa Tang, Co-CEO and CFO, as well as Mr. Kai Fang, our Chief Strategy Officer. Thank you, Director. Good morning, everyone. We released 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 the site 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 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 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 the applicable law. Please 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. 同时也提请投资者注意, 本次电话会议上使用的某些财务指标, 如金调整净亏损率, EBITDA和EBITDA利润率是以non-GAAP的形式呈现, 我们的GAAP结果以及GAAP到non-GAAP之间的调和, 请参考最新业绩新闻稿。 Also, please be reminded that unless otherwise stated, all figures mentioned during the call are in Chinese renminbi. With that, let me now turn the call over to our chairman and CEO, Mr. Louis Liang. Over to you, Louis. Thank you, Mandy.

And many thanks to everyone for joining the call today. The fiscal year 2022 represents another challenging year for every one of us. Whether you are from the US, China, or other parts of the world, Before we start, no matter where you are, we appreciate your utmost confidence and support in BOKI, and we are glad that we were able to deliver encouraging results despite the frustrating COVID-19 pandemic. Thank you very much for attending today's phone call meeting. Whether you are from the United States, China, or other regions, 2022 is undoubtedly a year full of challenges. Thank you very much for your confidence and support for Boqi. The COVID-19 pandemic is still ongoing. Uncertainty still exists, but we have still given outstanding results. Reflecting on our operations, the self-supply chain disruption in China has no doubt created difficulties to our daily operations and put close pressure on our fulfillment. The regional lockdown has also limited spending and affected the performance of the retail market, yet not all were negatives. As the lockdowns have lead to more time at home, more time with our beloved pets, and in return, delivering the sales of pet products ranging from daily necessities to health care, cleaning and grooming products. In the past quarter, the impact of the pandemic on the public chain has brought great difficulties to our daily operations. The travel cost has also been constantly rising, and regional closure has limited consumption and affected the overall performance of the retail market. But during the closure, we have more time to stay at home and have more time to be with our beloved pets. These factors have promoted the sale of pet products, including daily necessities, health products, cleaning products, and beauty products, etc. As a result, we were able to deliver a growth in GMB and revenue, as well as improve our efficiency and expand our margins. But more importantly, we provide ourselves on delivering the required pet products to the large community, despite lockdown and supply chain disruptions. That would not be possible if we are without Our extensive in-house facilities and proven fulfillment capability. Because of this, we have realized the growth of GMB and income, while increasing efficiency and expanding profitability. What makes us even happier is that we can provide pet products to large community families in the event of closure and supply chain interruptions. We believe that this all depends on the extensive freedom Looking back, we aim to be the reliable and trusted platform for pet parents since day one. And I believe we have done so, especially during the pandemic. We firmly believe our value is much more than a simple e-commerce business. As a leading platform with extensive product range, extensive outreach channel, engaging community, and rich content, we have formed an ecosystem that can effectively connect pet parents and industry partners. As we continue to grow in scale, we believe we are well positioned to capture the leasing products and service needs for our pet parents, as well as the marketing needs of the underserved SEMES. Since the establishment of Boqi, we have always hoped to become a reliable and reliable service platform for pet families. Especially during the pandemic, I believe we have already proven the value and capability of Boqi. We believe that the value of Boqi is far more than just a simple e-commerce platform. As the leader of pet platforms, we have a diverse product category, a wide range of access channels, a highly interactive community, and a rich content. All these capabilities help us to build an ecosystem Financially, we are also moving closer to breakeven. We have the utmost confidence that it will facilitate our value recovery and generated shareholder return. This would also provide us the capital to explore other opportunities and go beyond organic growth, adding further growth impact to our business. We will continue to work with passion while keeping a keen eye on our operations. operation as well as potential market opportunities in order to repay your trust and confidence. Let me pass the time to our co-CEO, Lisa, to update you on our achievement during the year. 总的来说,我们对未来的发展很乐观,作为管理层,我们将继续努力经营,密切关注公司的运营以及潜在的市场机会,以回报大家的信任和信心。 Thank you, Luis. During the year, Boqi has put great effort to enhance its infrastructure.