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Highlights for Fourth Quarter 2019:
- GMV1 reached
RMB4,679.0 million (US$672.1 million ) for Q4 2019, representing an increase of 51.9% fromRMB3,080.7 million for Q4 2018. - Total number of orders2 was 1.4 million for Q4 2019, representing an increase of 48.4% from 945.2 thousand for Q4 2018.
- Number of active customers3 increased by 50.9% to 612.5 thousand for Q4 2019 from 406.0 thousand for Q4 2018.
- Total revenues increased to
RMB2,040.1 million (US$293.0 million ) for Q4 2019, increasing by 13.8% fromRMB1,792.6 million for Q4 2018. - Net income was
RMB43.7 million (US$6.3 million ) for Q4 2019 compared withRMB48.3 million for Q4 2018.
Highlights for Full Year 2019:
- GMV1 reached
RMB13,785.3 million (US$1,980.1 million ) for full year 2019, representing an increase of 71.3% fromRMB8,048.1 million for 2018. - Total number of orders2 was 4.0 million for full year 2019, representing an increase of 75.6% from 2.3 million for 2018.
- Number of active customers3 increased by 67.5% to 1,223.0 thousand for 2019.
- Total registered customers reached 36.5 million as of
December 31, 2019 from 27.0 million as ofDecember 31, 2018 . - Total revenues reached
RMB6,869.2 million (US$986.7 million ) for full year 2019, increasing by 27.5% fromRMB5,387.6 million in 2018. - Net income increased by 3.9% to
RMB161.7 million (US$23.2 million ) for full year 2019 fromRMB155.5 million for 2018.
_________________________
1 GMV, or Gross Market Value, refers to the total value of all orders of products and services, excluding the value of whole car sales, placed on our online platform and in our offline experience centers, regardless of whether the products are delivered or returned or whether the services are cancelled during the period presented.
2 Total orders refer to the total number of orders of products and services, excluding the number of whole car sales, placed on our online platform and in our offline experience centers, regardless of whether the products are delivered or returned or whether the services are cancelled during the period presented.
3 Active customer refers to a customer who made at least one account purchase during the period presented.
Commentary
Mr. Richard Rixue Li, Chairman and Chief Executive Officer of
“We remain committed to our diversified growth strategy, expanding supply chain capabilities and deepening brand relationships across the globe as part of our continuous pursuit to meet and exceed the ever-evolving demand for luxury goods. Our strategic effort to cultivate our membership ecosystem continues to deliver promising results. In the fourth quarter, the number of active customers enrolled in our membership programs increased approximately 200.0% year-over-year, which increased transaction volume on
Mr.
Recent Developments
- In the fourth quarter,
Secoo executed a series of high-profile year-end consumer events during shopping holidays such as "Double-11", "Black Friday", and "1217 Luxury Festival.” These events featured innovative marketing campaigns centering on the Company’s membership programs. Supported by Secoo’s AI-based operating platform and service system, these marketing activities, strongly boosted the Company’s rapidly growing active customer base.
- Since the beginning of the fourth quarter to date,
Secoo has secured direct cooperation partnerships with 69 new brands, including Zegna, Maserati, Lanvin, andAnna Sui .
- During the fourth quarter,
Secoo continued to heighten its livestream ecosystem. Our livestream video programs focuses largely on fashion and upscale content, featuring a wide range of unique, engaging experiences such as live broadcast programs in direct collaboration with brands, livestream in-store shopping, live fashion show and live broadcasting fashion style guidance. These programs are designed to effectively drive user traffic and free-to-paid conversion rate.
- In late
February 2020 ,Secoo worked with Tod’s,Versace and Lanvin to live stream on Secoo’s platform their runway shows during theMilan and Paris Fashion Weeks. This gave users front-row, real-time viewing for the autumn-winter collections from each fashion house, all from the convenience of their own homes, free of charge.
- Ontimeshow, a well-known Chinese indie fashion trade show, launched its inaugural online trade show exclusively on Secoo’s platform when its offline 2020 autumn-winter season show was canceled due to the COVID-19. Since
mid-March 2020 ,Secoo has enabled all indie designers and branded shops on Ontimeshow to sign up for an online shop onSecoo , which offers live streaming functions to promote their sales.
- In
February 2020 ,Secoo upgraded its tiered membership program with enhanced membership benefits. This initiative, coupled with promotional campaigns during shopping festivals and holidays, contributed to a robust increase in the number of paying users on its platforms.
- Starting from
February 2020 , the Company launched an express delivery service catering to customers inBeijing ,Shanghai ,Xiamen and Qingdao. Customers in these four cities who order products applicable to this express delivery service through theSecoo app are now able to receive their merchandise in as quickly as 2 hours from the time of placing their order.
- In the fourth quarter,
Secoo launched an online luxury authentication service for luxury item to users online.Secoo rolled out this new service by leveraging a strong team of luxury goods authentication experts and a powerful product authentication database that incorporates block chain technology.
- In the fourth quarter,
Secoo officially launched a unified merchandise management system which applies AI-empowered identification, big-data analytics and cloud computing technologies to standardized merchandise descriptions for SKUs to implement automated pricing of merchandise and product recommendations.
Fourth Quarter 2019 Financial Results
GMV increased by 51.9% to
Total number of orders increased by 48.4% to 1,403.0 thousand for the fourth quarter of 2019 from 945.2 thousand for the fourth quarter of 2018.
Total revenues for the fourth quarter of 2019 increased by 13.8% to
Cost of revenues increased by 19.6% to
Gross profit was
Operating expenses decreased by 7.5% to
Fulfillment expenses increased by 24.7% to
Marketing expenses decreased by 30.9% to
Technology and content development expenses increased by 27.2% to
General and administrative expenses increased by 23.7% to
Income from operations was
Non-GAAP income from operations for the fourth quarter of 2019 was
Income tax expenses was
Net income was
Non-GAAP net income, which excludes share-based compensation expenses, was
Net income attributable to ordinary shareholders of
Basic and diluted net income per share were
Non-GAAP basic and diluted net income per share were
Cash and Restricted Cash
As of
Full Year 2019 Financial Results
GMV increased by 71.3% to
Total number of orders increased by 75.6% to 4.0 million for full year 2019 from 2.3 million for 2018.
Total revenues for full year 2019 increased by 27.5% to
Cost of revenues increased by 28.1% to
Gross profit increased by 24.7% to
Operating expenses increased by 32.4% to
Fulfillment expenses increased by 37.3% to
Marketing expenses increased by 17.0% to
Technology and content development expenses increased by 26.2% to
General and administrative expenses increased by 87.8% to
Income from operations was
Non-GAAP income from operations for full year 2019 was
Income tax expenses was
Net income was
Non-GAAP net income, which excludes share-based compensation expenses, was
Net income attributable to ordinary shareholders of
Basic and diluted net income per share were
Non-GAAP basic and diluted net income per share were
Business Outlook
COVID-19 has brought unprecedented levels of macro-economic disruption and uncertainty across the globe. Since late January, most regions in
Conference Call Information
The Company's management will host an earnings conference call at
To speed up the entry process for participants, this earnings conference call requires all participants to finish an online registration in advance.
For participants who wish to join the call, please complete the Direct Event online registration at http://apac.directeventreg.com/registration/event/2837748 at least 15 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, Direct Event Passcode, unique Registrant ID, and an e-mail with detailed instructions to join the conference call.
Once complete the registration, please dial-in at least 10 minutes before the scheduled start time of the earnings call and enter the Direct Event Passcode and Registrant ID as instructed to connect to the call.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.secoo.com.
A replay of the conference call will be accessible by phone two hours after the conclusion of the live call at the following numbers, until
+1-646-254-3697 | |
International: | +61-2-8199-0299 |
+852-3051-2780 | |
Mainland |
400-632-2162 |
Replay Access Code: | 2837748 |
About
For more information, please visit http://ir.secoo.com.
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements which are presented in accordance with
The use of non-GAAP financial measures has certain limitations. These non-GAAP measures exclude certain items that have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to results prepared in accordance with
Reconciliation of these non-GAAP financial measures to the most directly comparable
Exchange Rate Information
This press release contains translation of certain Renminbi amounts into
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to
For investor and media inquiries, please contact:
In
Tel: +86 (10) 6588-0135
E-mail: ir@secoo.com
Tel: +86 (10) 6508-0677
E-mail: Secoo@tpg-ir.com
In
Tel: +1-212-481-2050
E-mail: Secoo@tpg-ir.com
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
(All amounts in thousands, except for share data) | |||||||||||||||||||
For the Three Months Ended |
For the Year Ended |
||||||||||||||||||
2018 | 2019 | 2018 | 2019 | ||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
Revenues: | |||||||||||||||||||
Merchandise sales | 1,725,074 | 1,974,903 | 283,677 | 5,244,446 | 6,655,589 | 956,016 | |||||||||||||
Marketplace and other services | 67,522 | 65,197 | 9,365 | 143,131 | 213,623 | 30,685 | |||||||||||||
Total revenues | 1,792,596 | 2,040,100 | 293,042 | 5,387,577 | 6,869,212 | 986,701 | |||||||||||||
Cost of revenues | (1,458,104 | ) | (1,744,491 | ) | (250,580 | ) | (4,427,844 | ) | (5,672,265 | ) | (814,770 | ) | |||||||
Gross profit | 334,492 | 295,609 | 42,462 | 959,733 | 1,196,947 | 171,931 | |||||||||||||
| | | | | |||||||||||||||
Operating expenses: | |||||||||||||||||||
Fulfillment expenses | (40,140 | ) | (50,052 | ) | (7,190 | ) | (138,710 | ) | (190,503 | ) | (27,364 | ) | |||||||
Marketing expenses | (153,703 | ) | (106,234 | ) | (15,260 | ) | (410,548 | ) | (480,442 | ) | (69,011 | ) | |||||||
Technology and content development expenses | (21,298 | ) | (27,111 | ) | (3,894 | ) | (80,398 | ) | (101,477 | ) | (14,576 | ) | |||||||
General and administrative expenses | (50,273 | ) | (62,166 | ) | (8,930 | ) | (110,802 | ) | (208,052 | ) | (29,885 | ) | |||||||
Total operating expenses | (265,414 | ) | (245,563 | ) | (35,274 | ) | (740,458 | ) | (980,474 | ) | (140,836 | ) | |||||||
Income from operations | 69,078 | 50,046 | 7,188 | 219,275 | 216,473 | 31,095 | |||||||||||||
Other income/(expenses): | |||||||||||||||||||
Interest expense, net | (23,369 | ) | (29,005 | ) | (4,166 | ) | (42,533 | ) | (109,447 | ) | (15,721 | ) | |||||||
Foreign currency exchange gain/(loss) | 167 | (2,803 | ) | (403 | ) | (11,737 | ) | (3,426 | ) | (492 | ) | ||||||||
Change in fair value of equity securities | - | 15,504 | 2,227 | - | 22,363 | 3,212 | |||||||||||||
Others | 13,159 | 14,418 | 2,071 | 31,269 | 67,134 | 9,643 | |||||||||||||
Income before income tax | 59,035 | 48,160 | 6,917 | 196,274 | 193,097 | 27,737 | |||||||||||||
Income tax expenses | (10,714 | ) | (4,428 | ) | (636 | ) | (40,728 | ) | (31,426 | ) | (4,514 | ) | |||||||
Net income | 48,321 | 43,732 | 6,281 | 155,546 | 161,671 | 23,223 | |||||||||||||
Less: Gain attributable to redeemable non-controlling interest | 1,296 | 286 | 41 | 2,001 | 1,120 | 161 | |||||||||||||
Less: Gain attributable to non-redeemable non-controlling interest | 551 | 2,322 | 334 | 1,712 | 5,499 | 790 | |||||||||||||
Net income attributable to |
46,474 | 41,124 | 5,906 | 151,833 | 155,052 | 22,272 | |||||||||||||
Accretion to redeemable non-controlling interest redemption value | - | (130 | ) | (19 | ) | - | (629 | ) | (90 | ) | |||||||||
Net income attributable to ordinary shareholders of |
46,474 | 40,994 | 5,887 | 151,833 | 154,423 | 22,182 | |||||||||||||
Net income per share | |||||||||||||||||||
— Basic | 1.85 | 1.63 | 0.23 | 6.02 | 6.15 | 0.88 | |||||||||||||
— Diluted | 1.78 | 1.57 | 0.23 | 5.80 | 5.89 | 0.85 | |||||||||||||
Net income per ADS | |||||||||||||||||||
— Basic | 0.92 | 0.82 | 0.12 | 3.01 | 3.08 | 0.44 | |||||||||||||
— Diluted | 0.89 | 0.79 | 0.11 | 2.90 | 2.95 | 0.42 | |||||||||||||
Weighted average number of shares outstanding used in computing net income per share | |||||||||||||||||||
— Basic | 25,122,199 | 25,122,199 | 25,122,199 | 25,235,404 | 25,122,199 | 25,122,199 | |||||||||||||
— Diluted | 26,090,181 | 26,167,422 | 26,167,422 | 26,182,922 | 26,221,104 | 26,221,104 | |||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(All amounts in thousands, except for share data) | ||||||||||
As of |
||||||||||
2018 | 2019 | |||||||||
RMB | RMB | US$ | ||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash | 1,034,385 | 709,823 | 101,960 | |||||||
Time deposits | 68,632 | - | - | |||||||
Restricted cash | 89,222 | 240,741 | 34,580 | |||||||
Investment in equity security | 26,032 | 2,318 | 333 | |||||||
Accounts receivable, net | 119,580 | 167,012 | 23,990 | |||||||
Inventories | 1,712,740 | 2,680,428 | 385,019 | |||||||
Advances to suppliers | 429,219 | 333,826 | 47,951 | |||||||
Prepayments and other current assets | 133,551 | 363,093 | 52,155 | |||||||
Amounts due from related parties | 13,284 | 24,258 | 3,484 | |||||||
Total current assets | 3,626,645 | 4,521,499 | 649,472 | |||||||
Non-current assets | ||||||||||
Property and equipment, net | 56,698 | 83,816 | 12,039 | |||||||
Intangible asset, net | 12,267 | 10,390 | 1,492 | |||||||
Restricted cash | 2,800 | 3,572 | 513 | |||||||
Investment in equity investees | 2,859 | 71,595 | 10,284 | |||||||
Deferred tax assets | 51,214 | 106,637 | 15,317 | |||||||
20,413 | 30,483 | 4,379 | ||||||||
Operating lease right-of-use assets | - | 159,321 | 22,885 | |||||||
Other non-current assets | 19,030 | 16,802 | 2,413 | |||||||
Total non-current assets | 165,281 | 482,616 | 69,322 | |||||||
Total assets | 3,791,926 | 5,004,115 | 718,794 | |||||||
LIABILITIES | ||||||||||
Current liabilities | ||||||||||
Short-term borrowings and current portion of long-term borrowings | 134,324 | 159,500 | 22,911 | |||||||
Accounts payable | 498,579 | 569,045 | 81,738 | |||||||
Amounts due to related parties | 1,564 | 9,031 | 1,297 | |||||||
Advances from customers | 66,954 | 57,122 | 8,205 | |||||||
Accrued expenses and other current liabilities | 352,714 | 998,953 | 143,491 | |||||||
Deferred revenue | 62,478 | 97,965 | 14,072 | |||||||
Operating lease liabilities | - | 38,608 | 5,546 | |||||||
Total current liabilities | 1,116,613 | 1,930,224 | 277,260 | |||||||
Non-current liabilities | ||||||||||
Long-term borrowings, excluding current portion | 1,151,560 | 1,215,249 | 174,560 | |||||||
Operating lease liabilities | - | 113,782 | 16,344 | |||||||
Long-term liabilities | 14,240 | 79,960 | 11,486 | |||||||
Total non-current liabilities | 1,165,800 | 1,408,991 | 202,390 | |||||||
| | | | |||||||
Total liabilities | 2,282,413 | 3,339,215 | 479,650 | |||||||
| | | | |||||||
Mezzanine Equity | ||||||||||
Redeemable non-controlling interest | 7,587 | 9,336 | 1,341 | |||||||
Total mezzanine equity | 7,587 | 9,336 | 1,341 | |||||||
| | | | |||||||
Equity: | ||||||||||
Class A Ordinary shares ( |
126 | 126 | 18 | |||||||
Class |
41 | 41 | 6 | |||||||
Treasury Stock (517,454 Class A ordinary shares as of |
(71,018 | ) | (71,018 | ) | (10,201 | ) | ||||
Accumulated losses | (1,280,753 | ) | (1,126,330 | ) | (161,787 | ) | ||||
Additional paid-in capital | 2,839,342 | 2,848,145 | 409,110 | |||||||
Accumulated other comprehensive loss | (6,373 | ) | (26,352 | ) | (3,789 | ) | ||||
Total equity attributable to ordinary shareholders | 1,481,365 | 1,624,612 | 233,357 | |||||||
Non-redeemable non-controlling interest | 20,561 | 30,952 | 4,446 | |||||||
Total equity | 1,501,926 | 1,655,564 | 237,803 | |||||||
| | | | |||||||
Total liabilities, mezzanine equity and equity | 3,791,926 | 5,004,115 | 718,794 | |||||||
Reconciliations of GAAP and Non-GAAP Results | |||||||||||||||
(All amounts in thousands, except for share and per share data) | |||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||
2018 | 2019 | 2018 | 2019 | ||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
Income from operations | 69,078 | 50,046 | 7,188 | 219,275 | 216,473 | 31,095 | |||||||||
Add: Share-based compensation expenses | 6,435 | (240 | ) | (34 | ) | 23,675 | 8,802 | 1,264 | |||||||
Non-GAAP income from operations | 75,513 | 49,806 | 7,154 | 242,950 | 225,275 | 32,359 | |||||||||
Net Income | 48,321 | 43,732 | 6,281 | 155,546 | 161,671 | 23,223 | |||||||||
Add: Share-based compensation expenses | 6,435 | (240 | ) | (34 | ) | 23,675 | 8,802 | 1,264 | |||||||
Non-GAAP net income | 54,756 | 43,492 | 6,247 | 179,221 | 170,473 | 24,487 | |||||||||
Net income attributable to ordinary shareholders of |
46,474 | 40,994 | 5,887 | 151,833 | 154,423 | 22,182 | |||||||||
Add: Share-based compensation expenses | 6,435 | (240 | ) | (34 | ) | 23,675 | 8,802 | 1,264 | |||||||
Non-GAAP net income attributable to ordinary shareholders of |
52,909 | 40,754 | 5,853 | 175,508 | 163,225 | 23,446 | |||||||||
| |||||||||||||||
Non-GAAP net income per share: | |||||||||||||||
Basic | 2.11 | 1.62 | 0.23 | 6.95 | 6.50 | 0.93 | |||||||||
Diluted | 2.03 | 1.56 | 0.22 | 6.70 | 6.22 | 0.89 | |||||||||
Non-GAAP net income per ADS: | |||||||||||||||
Basic | 1.05 | 0.81 | 0.12 | 3.48 | 3.25 | 0.47 | |||||||||
Diluted | 1.01 | 0.78 | 0.11 | 3.35 | 3.11 | 0.45 | |||||||||
Weighted average number of shares outstanding used in computing the adjusted net income per share | |||||||||||||||
— Basic | 25,122,199 | 25,122,199 | 25,122,199 | 25,235,404 | 25,122,199 | 25,122,199 | |||||||||
— Diluted | 26,090,181 | 26,167,422 | 26,167,422 | 26,182,922 | 26,221,104 | 26,221,104 |
Source: Secoo Holding Limited