LightInTheBox Holding Co., Ltd.

Good morning, everyone, and welcome to the first quarter 2022 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. Rene Vangestin for opening remarks and introductions. Please go ahead, sir.

Thank you, Sarah. Hello, everyone, and welcome to Light in the Box first quarter 2022 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. On the call from light in the box are Mr. Jian He, CEO, Ms. Yang Jun Ye, Chief Financial Officer, and Ms. Wenyu Liu, Chief Growth Officer. Mr. He will give an overview of the company's strategy and recent developments, followed by Ms. Ye, who will go over the financial results. They will all be available for the Q&A session that will follow. 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 Security 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 20-F, filed with the Securities and Exchange Commission. 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.

MR. Thanks, Raina, and thank you, everyone, for joining us today. After the festival season, at the end of calendar year and into the new year, the first quarter is traditionally a slower time the e-commerce industry. It had a very challenging first quarter of 2020 due to the continuous spread of Omicron variant in China. Manufacturing and logistics were delayed as multiple suppliers could not resume daily operations, while restrictions were imposed in certain regions. But thanks to our effective response mechanisms, resilient business model, and strong implementation capabilities. We were able to take concrete actions to minimize the impact of our supply chain. Total revenues for the first quarter were $93.8 million, compared with $112 million in the second quarter of 2021. Orders were $15.7 million were in transit at the end of March 2022 and were received by customers during Q2. Apparel has clearly become our most popular category and is a primary one that we have continuously invested in and allocated more resources to. During the first quarter, revenues from apparel increased by 13.7% year-over-year to 67.2 million, representing 71.7% of total revenue, up from 52.8% in the same quarter of 2021. Overall growth margin benefited from the change in product mix, improving to 15.7% compared with 46.6% a year ago. We believe that apparel sales will make up the majority of total revenues for the full year of 2022. The current challenges we are facing have actually provided us with upside opportunities. Lastly, in response to economic trends, several trends restructuring and better coordination of all our capabilities have helped us withstand the macroeconomic uncertainties and external pressures. As a result, our organization has become more flexible and stronger. Secondly, regardless of continuing global uncertainties, we have proved the effectiveness of our long-term growth strategies, which have generated higher efficiency and solidified our long-term partnerships with the suppliers. This strength has given us the ability to constantly improve our product mix and to offer more value for money and quality products on our shopping platforms in response to customer feedback. Although the first quarter of 2022 has brought us unprecedented challenges, we believe it's important to have a long-term mindset. Here are our proven strategies. while maintaining flexibility and navigating uncharted unexpected circumstances or adding shortened dynamics strive to continuously improve our overall operational efficiency and better serve our global customers. I'd like to turn the call over to Yuanjun Yang. Yuanjun, please go ahead.