LightInTheBox Holding Co., Ltd.

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

Thank you, Rachel. Hello, everyone, and welcome to Lighting the Box. Second Quarter 2020 Earnings Conference Call. The company's earnings results were released earlier today and are available on the company's IR website as well as through PR Newswire. Today you will hear from Light in the Box CEO, Mr. Jian He, who will give an overview of the company's strategies and recent development, followed by Ms. Yuan Jun Ye, the company's chief financial officer, who will go over the financial results. Together with them today is Ms. Wenyu Liu, the company's chief crowd officer. All will be available for the Q&A after the prepared remarks. Before we proceed, I would like to remind you of our safe harbor statement. Please note that the discussion today may contain certain forward-looking statements made under the safe harbor provisions of the US 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 filed with the Securities and Exchange Commission on May 1, 2020. We do not assume any obligation to update any forward-looking statements except as required under applicable law. At this point, I'd like to turn the call over to Mr. Herc. Mr. He, please go ahead.

Mr. Thanks, Shireen, and thank you everyone for joining us today. Despite the continued macroeconomic uncertainty, we are proud of achieving a significant milestone in the second quarter in relation to our operational and financial performance. Total revenue were $113.9 million in the second quarter, nearly doubling the second quarter in 2019, driven by the increase in new customers and more orders from existing customers across our co-operating regions like North America, Europe, and certain Asian countries. Product margins also improved year over year as a result of our ability to optimize our product mix and leverage the depth of our relationships. At the same time, we achieved a net income of $8.5 million. In comparison, the net income of $0.7 million in the preceding quarter and the net loss of $7.3 million in the same period of last year. Mainly due to our economies of scale and the disciplined management of costs, this results reflected the success of our revised strategy, which is to focus on optimizing product and category needs, enhancing supplier chain management, and driving customer engagement. In the past few quarters, we made significant progress in implementing our growth strategy by not only responding to the immediate needs of our customers, but also consistently improving our operations. To ensure that our strategy can be successfully executed, we focused on a number of key areas. First, we utilized our underlying technology-driven infrastructure to optimize our supply chain management. Although we have always benefited from longstanding relationships with suppliers, we have worked timeless to strengthen those partnerships during the second quarter. It was our ability to use our expertise to identify suitable suppliers for each merchandise category and our use of real-time data to inform suppliers of changes in demand that proved critical. As a result, we were able to leverage this capability to place large volume orders with better unit economics which strengthened the relationships with our premium suppliers, improved growth margins, and created a better value for money options for our end customers. Second, we optimized overall product mix with the strategic goal of improving margins and increasing order value. Among many changes made to the algorithms, the power of online stores We paid particular attention to our cross-sell efficiency and capabilities. As we continue to better understand the needs and the purchasing habits of our customers, we offered the user relevant and related products that complemented their existing orders. Our ability to successfully execute this strategy had a direct impact on the perceived value of our platform and was a driver of higher order values and greater user growth. Third, Bethesda integrated our customer-first mindset across every part of our business, which allowed us to satisfy the real needs of customers, and as a result, cultivated a more loyal customer base and an overall higher retention rate. Keying attention to our customers' needs during this crisis enabled us to uncover opportunities in real time across the regions. People continue to spend more time at home. The change in construction habits and the reliance on online shopping channels, that enabled us to mobilize our supply chain resources and keep up with demand in a timely and cost-effective manner. I'm confident that our current strategy places us on the right path to sustainable and profitable growth, and I'm excited about our achievements as we navigate the crisis and our further opportunities as we emerge from it. Our solid performance this quarter shows that our rapid response to the adverse floating conditions caused by the coronavirus pandemic has been a success and is an encouraging sign that the revamp of the strategies we laid out last year is, in fact, getting strong results as we focus on driving long-term sustainable value for shareholders. Our ability to drive great operating leverage, expand our user base, and generate more order flow from existing users is the product of our team's tremendous commitment focus and hard work. And I'm very proud of their work so far in 2020. As we look ahead to more progress in the third quarter, I'm confident that we are positioned to scale the business further, improve profitability to drive top-line growth in years to come. I will now turn the call over to Yuanjun to go through the financials for the quarter.