LightInTheBox Holding Co., Ltd.

Good morning, everyone, and welcome to the fourth quarter and full year 2021 earnings conference call for Light in the Bloods Holding Company Limited. Today's conference is being recorded. At this time, I'll turn the call over to Mr. Rene Vangesten for opening remarks and introductions. Please go ahead, sir.

Thank you, Amber. Thank you, Amber. Hello everyone and welcome to Light in the Box fourth quarter and full year 2021 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 developments, followed by Ms. Yuan Jun, the company's Chief Financial Officer, who will go over financial results. They will be available for Q&A at the end. 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 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, filed with the U.S. Securities and Exchange Commission on April 21st, 2021, 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. He. Mr. He, please go ahead.

Thanks, Juliana, and thank you everyone for joining us today. Let me start by acknowledging and thanking all the team for all their efforts and the dedication to the company. 2021 was an eventful year for us and for the overall cross-border online retail sector. We faced various unprecedented challenges and pressures, including very competitive environments stemmed by decelerating economic growth, high inflation concerns, and foreign exchange fluctuations, increasing marketing spend and shipping costs. New laws in Europe related to VAT and regulations on electronic products. Despite the unprecedented economic environments, we achieved 12% top-line growth year-over-year, from $398 million in 2020 to $446 million in 2021, and remained stable in our bottom line. Behind these numbers, our growth strategies have been fueled by our strong mission to fulfill our customers' needs and improve their shopping experience. Some of our highlight achievements in 2021 include we continued to increase the volume of apparel sales within our product mix as customers shop for clothes online. based on our customer reviews, competitive price matching, wide selections to choose from, and the time-saving benefits of sorting everything they need through one global platform. By the end of the fourth quarter of 2021, our apparel category reached over 70% of our total product sales, with the increase in apparel sales Our growth margin increased to 47.2% in the first quarter of 2021. We continued to build a resilient supply chain to drive production agility and visibility and to provide our customers with the best value for money and globally sourced products. And the investment in R&D in 2021 increased by 34% year-over-year, from $15 million to $20 million, which we believe will give us the edge in retail e-commerce to stay ahead of trends and capture industry insights for our suppliers and designers. Our ability to successfully navigate the challenge of 2021 is a testament to the effectiveness of our proven growth strategies. After years of building a solid foundation, serving over 140 countries, the fundamentals of our business are healthy and sustainable. Looking ahead, although there are still uncertainties and violent factors that may impact our business, we have proven that we have the know-how to stay in the middle of these challenges. We will continue to improve on operational efficiency and value-added services for our customers. This is the easing of travel restrictions around the world and many countries resuming economically. We are well-positioned to capture more growth opportunities with our deep expertise in cross-border e-commerce. I believe we will achieve sustainable growth and better serve the fast-growing and evolving needs of our customers in 2022. I now turn the call over to Yuanjun to go through the financial results.