Boqii Holding Limited Class A Ordinary Shares

Good day, ladies and gentlemen. Thank you for standing by, and welcome to BOCES fiscal 2023 first quarter earnings conference call. Currently, all participants are in 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. If you require operator assistance, please press star then zero. Now, I will turn the call over to Elle, Bochie's Head of Investor Relations. Elle?

Thank you, Operator. Good morning, everyone. Welcome to Bochie's Fiscal 2023 First Quarter Earnings Conference Call. Joining us today are Ms. Lisa Tong, Co-CEO and CFO, and Mr. Loyal Dai, our Financial VP. We released results earlier today. The press release is available on the company's IR website at ir.bochi.com, as well as from Newsware 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 four looking statements made under the Steve Haber 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 these and other risks and uncertainties are included in the company's public findings with the SEC. The company does not assume any obligation to update any forward-looking statement except as required under applicable law. Before the meeting, please note that today's discussion will include the preemptive statement made by the Security Act of the U.S. private securities lawsuit reform bill in 1995. The preemptive statement involves the risk and uncertainty of the employer. Therefore, the actual result of the company may be different from what is expected today. There is further information about these and other risks and uncertainties. Please note that certain financial measures that were used on this call, such as non-GAAP net loss, non-GAAP 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. 同时也请注意本次电话会议上使用的某些财务指标, 如non-GAAP净亏损率,一笔打和一笔打利润率是以non-GAAP的形式呈现。 有关我们GAAP的业绩结果以及GAAP与non-GAAP标准之间的调和, 请参考我们的业绩新闻稿。 And also please be reminded that unless otherwise stated, all figures mentioned during the conference call are in Chinese RMB. With that, let me now turn the call over to our co-CEO and CFO, Ms. Lisa Tang, to go over our Q1 performance and highlights. Over to you, Lisa. Thank you, Ella, and many thanks to everyone for joining the call today. Looking back into the last quarter, booty is also staying the pressure from COVID-19.

across its entire supply chain, ranging from disrupted local production to changes in logistics. Thank you, Ella. And thank you to everyone who attended today's phone call meeting. In the past three months, the COVID-19 pandemic has continued to impact the supply chain. Whether it's local production or logistics transportation, we have faced certain obstacles and difficulties. Weibo's performance has also brought some pressure. Despite all the challenges, Bozi remains committed to its mission of serving as a reliable and trusted platform to connect parents and brand partners. Supported by its extensive product range, extensive channel, engaging community, and rich content, as we continue to strengthen our brand among our parents, we were able to achieve a recovery in GMV and a revenue of 20.7% and 27.1% from the last call, respectively. Despite this, Boqi has been able to rely on a wide range of product types, a wide range of channels, a high-level community of interaction and rich content, effectively linking users and brand partners, becoming their most reliable platform. With the further improvement of Boqi's brand influence, We also continued to invest and enhance our big data analysis capability so that we can become one of the major go-to places for industry partners for a forward-looking perspective on pet market trends allowing them to quickly identify further market trends and capture the subsequent market opportunities. Hence, on our high-margin online marketing and information services, we were able to continue this growing trend, reporting at a 14.7% year-over-year growth in revenue during the quarter, highlighting the increasing marketing adoption. Our private label also performed well. Writing on our improving big data analysis capability, we identified growth potential in product categories, such as pet supplies and healthcare products, and have subsequently made adjustments to our existing product portfolio. As a result, we were able to report a satisfactory increase in revenue of 27.3% year-over-year. The growth has not only demonstrated our ability to respond to market needs, but more importantly, highlighting our resilience despite operating on a downward cycle. Our strong performance in private label together with continued efforts to enhance infrastructure further improve warehouse efficiency and expand the online marketing capability. led to a satisfactory margin expansion of 313 basis points in LVM, with post-fulfillment margin hitting 10.6%, reflecting our outstanding operational capabilities. 自由品牌的理想表现也和我们持续加强基础设施建设分不开。 我们进一步提高了仓储效率并且扩大了在线运营能力, 使得我们的履当后的毛利率同比大幅提升了3.3个百分点到10.6%, 体现了团队的出色运营能力。 Any hours changing cost control, reporting the loss from operations were RMB 9.8 million, narrowing by 76.4% year-over-year. and the net loss was significantly dropped by 66.8% year-over-year to RMB 12.4 million for the quarter, which is the best quarter so far. The improvement on cost control also gives us a much leaner structure to go forward, as we fully validate our ability to achieve profitability. 期间我们同时严格控制成本, Boji being the leading platform in China shall become one of the key beneficiaries As we continue to expand and strengthen our ecosystem and enhance our value proposition to parents and industry partners, Boqi, as China's leading pet platform, will continue to expand its ecosystem to create greater value for pet parents and industry partners, and thus become a major beneficiary of industry growth. Now let me pass the time to Ella to update further on operational and community engagement during the quarter. Okay, thank you, Lisa, for the market insight and business highlights.