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Highlights for First Quarter 2020:
- GMV1 reached
RMB2,476.0 million (US$349.7 million ) for Q1 2020, representing an increase of 12.2% fromRMB2,206.5 million for Q1 2019. - Total number of orders2 was 723.0 thousand for Q1 2020, representing an increase of 11.6% from 647.6 thousand for Q1 2019.
- Number of active customers3 increased by 11.5% to 340.0 thousand for Q1 2020 from 305.0 thousand for Q1 2019.
- Total revenues was
RMB1,005.2 million (US$142.0 million ) for Q1 2020, compared withRMB1,175.4 million for Q1 2019.
_________________________
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
“Drawing on our well-placed strategies, strong execution abilities and technology-driven innovation capabilities, we are in an advantageous position to support high-end brands and brick-and-mortar retail stores to accelerate their digital transformation, while meeting the rising demand for consumption upgrades in
Mr.
Recent Developments
- In
June 2020 ,Secoo closed on theUS$100 million equity investment fromQudian, Inc. (NYSE: QD) (together with its affiliates, “Qudian”) by issuing a total of 10,204,082 Class A ordinary shares of the Company toQudian .Secoo will utilize the proceeds to further strengthen the supply chain and enhance customer satisfaction, so as to better capture the rising demand for high-end products and services inChina .
- Since the beginning of the first quarter,
Secoo has hosted a number of large shopping festivals, including Secoo Brands & Quality Online Shopping Festival held in May andSecoo 618 shopping festival. The Brands & Quality Online Shopping Festival featured more than 200 live-stream selling sessions in collaboration with 13 top-tier luxury brands, including Prada,Versace , Ferragamo, Tod's,Roger Vivier , Armani and covering more than 40,000 products.
- From the first quarter of 2020 to date,
Secoo expanded direct collaborations with 150 new brands, including IDo, Ebohr,Ted Baker ,Jeff Banks and St John.
Secoo continued endeavors related to enhancing its characteristic live-streaming channel, by featuring engaging live-streaming programs with luxury tags and increasingly appealing to luxury brands that are bolstering their online strategy. For example, recently on our channel, Mulberry held its first live stream session to present its bags, DVF live streamed its runway show during fashion week andJenny Packham live streamed its haute couture labels and jewelry series.
- In early May of 2020,
Secoo entered into a strategic collaboration with China Fashion Week as its exclusive e-commerce platform partner.Secoo has completed over 100 live-stream selling sessions for China Fashion Week events such as fashion shows, brand presentations, and "See Now, Buy Now" marketing campaigns. These live streaming sessions have successfully created buzz, which significantly increased Secoo’s brand awareness and attracted a large traffic.
Secoo entered into collaborations with leading short video social networking platforms such as Douyin and Kuaishou to launch a series of cross-platform live streaming events, aiming to provide a wider range of consumers with fashion luxury goods supported by Secoo’s high-quality supply chain. For example, onJune 7, 2020 ,Secoo and Kuaishou jointly hosted a 5-hour live streaming sales campaign for luxury products, covering over one hundred select products from dozens of luxury brands, such as Hermes,LV , Armani and Gucci, which proved to be highly attractive and effective marketing approaches.
First Quarter 2020 Financial Results
GMV increased by 12.2% to
Total number of orders increased by 11.6% to 723.0 thousand for the first quarter of 2020 from 647.6 thousand for the first quarter of 2019.
Total revenues for the first quarter of 2020 was
Cost of revenues decreased by 8.9% to
Gross profit was
Operating expenses decreased by 21.0% to
Fulfillment expenses decreased by 7.4% to
Marketing expenses decreased by 37.9% to
Technology and content development expenses increased by 19.8% to
General and administrative expenses decreased by 13.8% to
Loss from operations was
Non-GAAP loss from operations for the first quarter of 2020 was
Income tax benefits was
Net loss was
Non-GAAP net loss, which excludes share-based compensation expenses, was
Net loss attributable to ordinary shareholders of
Basic and diluted net loss per share were both
Non-GAAP basic and diluted net loss per share were both
Cash and Restricted Cash
As of
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/6671729 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: | 6671729 |
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
The Piacente Group, Inc.
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 |
||||||||||
2019 | 2020 | |||||||||
RMB | RMB | US$ | ||||||||
Revenues: | ||||||||||
Merchandise sales | 1,123,871 | 959,522 | 135,510 | |||||||
Marketplace and other services | 51,516 | 45,649 | 6,447 | |||||||
Total revenues | 1,175,387 | 1,005,171 | 141,957 | |||||||
Cost of revenues | (927,157 | ) | (844,562 | ) | (119,275 | ) | ||||
Gross profit | 248,230 | 160,609 | 22,682 | |||||||
| | |||||||||
Operating expenses: | ||||||||||
Fulfillment expenses | (45,648 | ) | (42,283 | ) | (5,972 | ) | ||||
Marketing expenses | (111,852 | ) | (69,423 | ) | (9,804 | ) | ||||
Technology and content development expenses | (23,105 | ) | (27,676 | ) | (3,909 | ) | ||||
General and administrative expenses | (46,242 | ) | (39,851 | ) | (5,628 | ) | ||||
Total operating expenses | (226,847 | ) | (179,233 | ) | (25,313 | ) | ||||
Income (loss) from operations | 21,383 | (18,624 | ) | (2,631 | ) | |||||
Other income (expenses): | ||||||||||
Interest income | 4,682 | 1,461 | 206 | |||||||
Interest expense | (28,373 | ) | (31,062 | ) | (4,387 | ) | ||||
Foreign currency exchange gain (loss) | 893 | (972 | ) | (137 | ) | |||||
Change in fair value of equity investees | (339 | ) | 211 | 30 | ||||||
Others | 24,226 | 2,020 | 285 | |||||||
Income(loss) before income tax | 22,472 | (46,966 | ) | (6,634 | ) | |||||
Income tax benefits (expenses) | (6,674 | ) | 4,422 | 625 | ||||||
Net income (loss) | 15,798 | (42,544 | ) | (6,009 | ) | |||||
Less: Gain attributable to redeemable non-controlling interest | 417 | 319 | 45 | |||||||
Less: Gain (loss) attributable to non-redeemable non-controlling interest | 968 | (774 | ) | (109 | ) | |||||
Net income (loss) attributable to |
14,413 | (42,089 | ) | (5,945 | ) | |||||
Accretion to redeemable non-controlling interest redemption value | (243 | ) | (125 | ) | (18 | ) | ||||
Net income (loss) attributable to ordinary shareholders of |
14,170 | (42,214 | ) | (5,963 | ) | |||||
Net income (loss) per share | ||||||||||
— Basic | 0.56 | (1.68 | ) | (0.24 | ) | |||||
— Diluted | 0.54 | (1.68 | ) | (0.24 | ) | |||||
Net income (loss) per ADS | ||||||||||
— Basic | 0.28 | (0.84 | ) | (0.12 | ) | |||||
— Diluted | 0.27 | (0.84 | ) | (0.12 | ) | |||||
Weighted average number of shares outstanding used in computing net income per share | ||||||||||
— Basic | 25,122,199 | 25,122,199 | 25,122,199 | |||||||
— Diluted | 26,095,951 | 25,122,199 | 25,122,199 | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(All amounts in thousands, except for share data) | ||||||||||
As of |
As of |
|||||||||
2019 | 2020 | |||||||||
RMB | RMB | US$ | ||||||||
Assets | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | 709,823 | 490,690 | 69,299 | |||||||
Restricted cash | 240,741 | 242,156 | 34,199 | |||||||
Investment securities | 2,318 | 2,328 | 329 | |||||||
Accounts receivable, net | 123,226 | 104,243 | 14,722 | |||||||
Inventories | 2,680,428 | 2,853,653 | 403,013 | |||||||
Advances to suppliers | 333,826 | 396,355 | 55,976 | |||||||
Prepayments and other current assets | 431,107 | 359,720 | 50,802 | |||||||
Amounts due from related parties | 30 | 668 | 94 | |||||||
Total current assets | 4,521,499 | 4,449,813 | 628,434 | |||||||
Non-current assets | ||||||||||
Property and equipment, net | 83,816 | 79,925 | 11,288 | |||||||
Intangible asset, net | 10,390 | 10,051 | 1,419 | |||||||
Restricted cash | 3,572 | 586 | 83 | |||||||
Investment in equity investees | 71,595 | 60,922 | 8,604 | |||||||
Deferred tax assets | 106,637 | 117,254 | 16,559 | |||||||
23,560 | 24,016 | 3,392 | ||||||||
Operating lease right-of-use assets | 159,321 | 145,627 | 20,566 | |||||||
Other non-current assets | 16,806 | 17,239 | 2,434 | |||||||
Total non-current assets | 475,697 | 455,620 | 64,345 | |||||||
Total assets | 4,997,196 | 4,905,433 | 692,779 | |||||||
LIABILITIES | ||||||||||
Current liabilities | ||||||||||
Short-term borrowings and current portion of long-term borrowings | 159,500 | 189,500 | 26,763 | |||||||
Accounts payable | 569,045 | 664,065 | 93,784 | |||||||
Amounts due to related parties | 488 | 488 | 69 | |||||||
Advances from customers | 57,122 | 79,730 | 11,260 | |||||||
Income taxes payable | 110,615 | 116,022 | 16,385 | |||||||
Accrued expenses and other current liabilities | 895,694 | 718,361 | 101,452 | |||||||
Deferred revenue | 97,965 | 90,616 | 12,797 | |||||||
Operating lease liabilities | 38,608 | 42,123 | 5,949 | |||||||
Total current liabilities | 1,929,037 | 1,900,905 | 268,459 | |||||||
Non-current liabilities | ||||||||||
Long-term borrowings, excluding current portion | 1,215,249 | 1,208,356 | 170,652 | |||||||
Operating lease liabilities | 113,782 | 100,938 | 14,255 | |||||||
Long-term liabilities | 77,344 | 90,521 | 12,784 | |||||||
Total non-current liabilities | 1,406,375 | 1,399,815 | 197,691 | |||||||
| | | | |||||||
Total liabilities | 3,335,412 | 3,300,720 | 466,150 | |||||||
| | | | |||||||
Mezzanine Equity | ||||||||||
Redeemable non-controlling interest | 9,337 | 9,780 | 1,381 | |||||||
Total mezzanine equity | 9,337 | 9,780 | 1,381 | |||||||
| | | | |||||||
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 | ) | (10,030 | ) | ||||
Additional paid-in capital | 2,848,145 | 2,851,804 | 402,752 | |||||||
Accumulated losses | (1,126,330 | ) | (1,168,544 | ) | (165,030 | ) | ||||
Accumulated other comprehensive loss | (26,500 | ) | (45,123 | ) | (6,373 | ) | ||||
Total equity attributable to ordinary shareholders | 1,624,464 | 1,567,286 | 221,343 | |||||||
Non-redeemable non-controlling interest | 27,983 | 27,647 | 3,905 | |||||||
Total shareholders' equity | 1,652,447 | 1,594,933 | 225,248 | |||||||
| | | | |||||||
Total liabilities, mezzanine equity and shareholders' equity | 4,997,196 | 4,905,433 | 692,779 | |||||||
Reconciliations of GAAP and Non-GAAP Results | |||||||||
(All amounts in thousands, except for share and per share data) | |||||||||
For the Three Months Ended | |||||||||
2019 | 2020 | ||||||||
RMB | RMB | US$ | |||||||
Income (loss) from operations | 21,383 | (18,624 | ) | (2,631 | ) | ||||
Add: Share-based compensation expenses | 3,519 | 3,659 | 517 | ||||||
Non-GAAP income (loss) from operations | 24,902 | (14,965 | ) | (2,114 | ) | ||||
Net Income (loss) | 15,798 | (42,544 | ) | (6,009 | ) | ||||
Add: Share-based compensation expenses | 3,519 | 3,659 | 517 | ||||||
Non-GAAP net income (loss) | 19,317 | (38,885 | ) | (5,492 | ) | ||||
Net income (loss) attributable to ordinary shareholders of |
14,170 | (42,214 | ) | (5,963 | ) | ||||
Add: Share-based compensation expenses | 3,519 | 3,659 | 517 | ||||||
Non-GAAP net income (loss) attributable to ordinary shareholders of |
17,689 | (38,555 | ) | (5,446 | ) | ||||
| |||||||||
Non-GAAP net income (loss) per share: | |||||||||
Basic | 0.70 | (1.53 | ) | (0.22 | ) | ||||
Diluted | 0.68 | (1.53 | ) | (0.22 | ) | ||||
Non-GAAP net income (loss) per ADS: | |||||||||
Basic | 0.35 | (0.77 | ) | (0.11 | ) | ||||
Diluted | 0.34 | (0.77 | ) | (0.11 | ) | ||||
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 | ||||||
— Diluted | 26,095,951 | 25,122,199 | 25,122,199 |
Source: Secoo Holding Limited