LightInTheBox Holding Co., Ltd.

Good morning, everyone, and welcome to the fourth 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 Van Gesteen for any closing remarks.

Thank you, Betsy. Hello, everyone, and welcome to Light in the Box fourth quarter 2022 earnings 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 right in the box are Mr. Jian He, CEO, Ms. Yang Jun Ye, Chief Financial Officer, and Ms. Wenyu Liu, Chief Growth Officer. Mr. Hurd will give an overview of the company's strategy and recent developments, followed by Monsieur, who will go over the financial reserves. They will all be available for the Q&A session that will follow. Before we proceed, I would like to remind you all 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 20-F filed with the U.S. 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. Hertz. Mr. Hertz, please go ahead.

Thanks, Serena, and thank you, everyone, for joining us today. The cap of 2022, delivering a quarter of a solid operating and financial performance. Revenues increased 38% year over year to a record high of $156 million. This brought our annual revenues above $500 million and our apparel sales to $400 million. a new milestone in our history. And our year-end cash balance increased to $95 million. Our revenue growth rate in the second half of 2022 was also remarkable at 23% and 38% in Q3 and Q4, respectively. This is a testament to the soundness of our strategy and strong execution skills. of our team has operated under a very tough macro environment. The gross margin for the year improved significantly to 55% from 46% in 2021. We took a one-off non-cash impairment on an equity investment of $56 million, and the after-tax impact of this impairment was negative 43 million for the first quarter. The impairment was taken due to the extreme and rapid deterioration of the business over the last month of 2022. This impairment has low impact on our old business operations, which, as demonstrated by our operating performance, remain healthy and continue to grow. In a year marked by global inflation and economic uncertainty, there made many consumers more cautious in their spending. And the pandemic-related supply disruptions, our performance has been quite remarkable. Thirdly, in 2022, the revenue growth rate in our apparel category significantly outpassed the overall market. During the fourth quarter, revenues from apparel increased 59% year-over-year to $124 million. For the fall year 2022, revenues from apparel reached about $400 million, representing 79% of our total revenues. This solid performance is the result of three specific factors. We are offering a wide selection of value-for-money apparel and products that help customers mitigate the impact of inflation on their daily spending. Second, we have been targeting a vital generation of middle-class consumers 40 years older and older who have higher disposable income. And third, over the past two years, we have gradually increased our efficiency in targeting customers by leveraging our R&D capabilities. Looking ahead, we will continue to invest in R&D to improve user experience and efficiency in reaching our customers. We want to continuously offer our target customers affordable, comfortable, aesthetically pleasing, and visually interesting clothing. This can bring happiness and vibrancy to their daily life. As supply chain issues have been resolved and uncertainty lifted, we will start to give quarterly guidance from this quarter on. With that, I will now hand the call over to Yuanjun to go through the financial results.