Secoo Holding Limited
Q3 2020 Earnings Call Transcript

Published: 28 Dec 2020

[Operator:]

Hello, ladies and gentlemen. Thank you for standing by for Secoo Holding Limited’s Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After management’s prepared remarks, there will be a question-and-answer session. Today’s conference call is being recorded. I will now turn the call over to your host, Ms. Jingbo Ma, Board Secretary of the company. Please go ahead, Jingbo.

[Jingbo Ma:]

Hello, everyone. And welcome to the third quarter 2020 earnings conference call of Secoo Holding Limited. The company’s results were issued via Newswire services earlier today and have been posted online. You can download the earnings press release and sign up to the company’s e-mail alerts by visiting the IR section of our website at ir.secoo.com.

[Richard Li:]

Hello, everyone and thank you for joining us today. We are pleased to have maintained the operational growth in the third quarter of 2020, highlighted by GMV growth of 12.5% year-over-year to RMB4.12 billion, supported by our exceptional technologies capacity in AI, Big Data and cloud services. As long as our well-established high-end supply chain system across the globe, we felt our self uniquely positioned to capture the booming e-retail market opportunities attempting from the rising adoption of online shopping is the aftermath of pandemic. As the go to luxurious e-commerce platform in China, we are not just facilitating the digital transformation for domestic and foreign brands, but also providing numerous reliable online shopping options for a growing number of Chinese consumers who are perceiving the life style that feature array of high-end goods and premium services. In particular, our ongoing efforts to make strategic focus on key brands not only allow us to generate universal brand awareness in the luxury e-commerce space, but increases the average spending per customer. Since the beginning of the third quarter, we continue our efforts to roll up a series of online shopping festivals, including Secoo anniversary sales Festival on July 7th, the Chinese Valentine’s Day campaign in August and outlets offering promotional campaign in September. These festivals featured personalized and the efficient AI-driven marketing approaches alongside our technological innovations and high-scale fashion company initiative, which also focusing on operation of key brands. All these efforts have contributed to the loyalty of our existing customers and motivated them to purchase repeatedly on our platform effectively boosting the GMV in the third quarter.

[Shaojun Chen:]

Thank you, Richard, and hello, everyone. In the third quarter, amid a recovering COVID-19 damage in Mainland China, we delivered net income of RMB28.8 million representing an increase of 252.5% quarter-over-quarter. Our sequential improvement in profitability demonstrates the resilience of our business model to navigate through market dynamics. Going forward, we remain confident to capture immense potential in China’s online high-end consumer market in the long run. Now I’d like to walk you through our detailed financial results in the third quarter of 2020. GMV increased by 12.5% to approximately RMB4.12 billion for the third quarter of 2020 from RMB3.66 billion for the third quarter of 2019. Total number of orders increased by 7.1% to approximately RMB1.11 billion for the third quarter of 2020 from around RMB1.04 million for the third quarter of 2019. Total revenue for the third quarter of 2020 was approximately RMB1.37 billion, compared with RMB1.94 billion in the third quarter of 2019, primarily attributable to the increase in the proportion of business contribution from our marketplace platform business that’s recognized revenue under net basis and short supply of some luxury goods and delayed logistics services due to the impact of COVID-19 pandemic.

[Operator:]

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[Operator:]

As there are no questions, I’d now like to turn the call back over to the company for the closing remarks.

[Jingbo Ma:]

Thank you once again for joining us today. If you have further questions, please feel free to contact Secoo’s Investor Relations through the contact information provided on our website or The Piacente Group Investor Relations whose information is also on our website.

[Operator:]

This concludes today’s conference call. You may now disconnect your line. Thank you.