Boqii Holding Limited Class A Ordinary Shares

Good day, ladies and gentlemen. Thank you for standing by, and welcome to Bo Chee's second half and fiscal year 2023 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. Now, I will turn the call over to Elle, Bochy's Head of Investor Relations. Elle?

Thank you, Operator. Good morning, everyone. Welcome to Bochy's Second Half and Fiscal Year 2023 Earnings Conference Call. Joining us today are Ms. Lisa Tang, Co-CEO and CFO, as well as Mr. Loyal Dai, our Financial VP. We released results earlier today. The press release is available on the company's IR website at ir.boqi.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 current 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 is included in the company's public filing with the SEC. The company does not assume any obligation to update any forward-looking In the beginning of the meeting, please note that today's discussion will include the preemptive statement made by the Security Act of the United States 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. 有关这些及其他风险和不确定因素的进一步信息已经在于公司向美国证券交易委员会提交的公开文件当中。 除非适用法律要求,公司将不承担任何更新前瞻性声明的义务。 Please note that certain financial measures that we use on this call, such as non-GAAP net loss, non-GAAP net loss margin, EBITDA and EBITDA margin, are expressed on the 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, 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. Over to you, Lisa. Thank you, Elle. And many thanks to everyone for joining the call today. In fact,

fiscal year 2023 was a challenging year for e-commerce in China. Increasing geopolitical risks and the lingering COVID-19 impact have led to a wide range of changes in the global supply chain. That was subsequently translated to growing raw material and logistic costs. The rising inflation and uncertainties has also led to a general conversation among consumers. In the case of China, the COVID prevention policies have also created short-term problems on production and delivery. Thank you, Al. Thank you for attending today's phone call. In fact, for China's e-commerce, the year 2023 is a challenging year. The rising risk of hell COVID-19 has also had a short-term impact on production and shipping in China. In spite of this, we remain confident in our unique positioning in China's expanding pet market. We saw favorable increase in the number of pets and the growing penetration of pet economists that will support further pet consumer online. We also saw the trend of consumption upgrade supported by the strong growth in unique markets such as pet food and healthcare products. Over the years, we've tried to strengthen our group along the supply chain integrations in order to improve the operational efficiency and enhance margin. For example, in the post-COVID era, based on the system supporting, we switched from traditional warehousing to cloud warehousing management, allowing us to get better efficiency. We also relabored our upstream production and manufacturing network so that we can enhance our cost optimization, accelerating production, and varieties for group business. In the past year, we have increasingly strengthened the control over the supply chain integration, and improved the efficiency and profit space, such as by transforming the traditional warehouse into a cloud warehouse, to further improve the efficiency of the use of assets. At the same time, we have further marked the production network of the above-mentioned manufacturing industry, We are particularly encouraged by the fact that we see a strong monthly performance at the end of the fourth quarter. We are also happy to report that our net loss has significantly narrowed by 41.6% in fiscal year 2023. laying a solid foundation for a turnaround in fiscal year 2024. Looking ahead, we expect China's consumer sentiment to rebound as a result of post-COVID era, as well as the reducing market uncertainties and the inflation impact. We will continue to drive business development and financial growth through organic development and M&A, as we are confident that Boise will continue to grow in creating long-term values for our shareholders branded partners, and parents. Looking forward to the future, we expect that we will have confidence in the confidence of Chinese consumers, and we have confidence in the development of consumption after the reduction of uncertain factors and inflation. We will continue to promote business development and financial growth through internal and external sources. 有信心为股东品牌合作伙伴和养宠物父母去创造长期的价值。 As part of management team, we believe we are heading towards the right direction. Our team will continue to work with passion while keeping a keen eye on our operation and potential market opportunities. In order to repay our trust and confidence, let me pass the time to Elle to further update you on our operations and the private labels in fiscal year 2023.