LightInTheBox Holding Co., Ltd.

Good morning, everyone, and welcome to the first quarter 2020 earnings conference call for Light in the Box Holding Company Limited. Today's conference is being recorded. At this time, I would like to turn the call over to Mr. Christian Arnault for opening remarks and introductions. Please go ahead, sir.

Thank you. Hello, everyone, and welcome to Light in the Box's first quarter 2020 earnings conference call. The company's results were released earlier today and are available on the IR website. as well as through PR Newswire. Today, you will hear from Light in the Box's CEO, Mr. Jin He, who will give you an overview of the company's strategy and recent developments, followed by Ms. Wenyu Liu, the company's Acting Chief Financial Officer, who will go over financial results in more detail. Before we proceed, I'd like to remind you of our Safe Harbor Statement. Please note that the discussion today may contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. To understand the factors that could cause results to materially differ from those in the forward-looking statements, please refer to our Form 20F, Files of the Securities and Exchange Commission, on May 1, 2020. We do not assume any obligation to update any forward-looking statement except as required under applicable law. At this point, I'd now like to turn over the call to Mr. Hood. Please go ahead.

Thanks, Christian, and thank you everyone for joining us today. The first quarter presented unprecedented challenges for our business, in terms of overall consumer demand and fulfillment constriction due to the impact of the coronavirus. Thus, it created an opportunity to further test our current strategy for driving great operational efficiency and forced us to make strategical adjustments. throughout the quarter to weather the economic disruption. I'm proud to say that all of our efforts to ensure the health and safety of our employees, maintain business activity, plan for the resumption of normal operations, and safeguard partnerships for fulfillment capacity resulted in our third consecutive quarter of GIAP profitability since 2014. Our strategic adjustments in the first quarter also deepened our relationships with the suppliers, expanded our customer base, and further optimized our cost structure, all of which has helped to improve our market position and ability to scale business going forward. Despite the significant reduction in business activities globally, revenues still increased to 51.5 million. during the quarter, up 1.3% year-over-year. Growth margin extended significantly to 46.4% from 34.8% during the same quarter last year. Once again, driven by our continuous efforts to grow revenues from categories with higher margins, it's part of our efforts to improve the optimization of our product mix. This was also underpinned by our ability to quickly negotiate with suppliers to secure fast-moving products in the PPE category, and realized cost savings through a disciplined approach to inventory management. Adjustability data also improved significantly, increasing to 1.4 million, compared with the loss of 7.9 million in the same quarter of 2019. As I mentioned earlier, we delivered our third straight quarter of GLAP profitability, while our cash and cash equivalents position remains healthy, and $35.6 million, which we are continuing to provide us with the resources and flexibility needed to drive growth going forward. We began to see the impact of coronavirus on duties and activities as early as late January, We couldn't deliver goods from our warehouse for almost a month. Employers were severely restricted from coming to work, and we anticipated that operating environments could get worse. It did get worse. As countries started to put more global travel restrictions in place, and customs service became more constrained, our focus had to shift quickly to safeguarding our employees But apparently as important, ensuring that our customers will continue to receive packages on time. In rapid response to the challenge, our management team quickly implemented and removed 14 protocols. We had a serious strategy conversation with the suppliers. And we made adjustments to our innovative logistic infrastructure. by securing fast-moving and high-demand PPE products. This helped to mitigate the overall impact in our business. But we also took it a step further by stepping up our commitment to greater corporate social responsibility and helping many of our global customers in the fighting against the pandemic. During the quarter, we shipped over 1.5 million masks to customers, in the United States, Europe, and Southeast Asia. The unintended effect of our efforts resulted in even larger customer footprint, expansion of our supplier's relationships, and an overall improvement in net-in-the-box demand and visibility. The allowed sales volume picked up across all the countries we covered. And as though it's premature to use DashFix, we can confidently say that our repeat customer purchase rates are trending higher. We expect revenue in Q2 2020 to grow on a year-over-year basis. We resume the production at full capacity towards the end of the first quarter of 2020, and have been seeing a substantial increase in selected categories at home garden Over the last two to three weeks, we have also started to see a rebound in more traditional categories, such as fashion as a customer's trend for gradual reopening. In respect of the resulting operating environments throughout the rest of the year, we are confident the over-balanced category mix enhanced the efficiency, extended the customer base, and the factory relationships. Innovative logistical infrastructure and increasing worldwide adoption of the online shopping all position us there to drive profitability going forward and deliver our other targets for margin expansion. Our performance disorder reflects our ability to rapidly adapt to advice operating conditions showcased the tremendous commitments of our employees and the management team. And then we must tell you how well the strategies we laid out last year. Achieving long-term sustainable value for shareholders despite the challenges. I'm extremely proud of our performance during the quarter, and I'm already very encouraged by the research and activity we have been seeing in the second quarter so far. I'm looking forward to further progress throughout the rest of 2020, and I'm confident that we are well-positioned to scale business further, improve profitability, and drive for blind growth as the recovery continues. I'd now turn the call over to Renyu to go through the financials for the quarter.