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Highlights for First Quarter 2019:
- GMV1 reached
RMB2,206.5 million (US$328.8 million ) for Q1 2019, representing an increase of 97.1% fromRMB1,119.5 million for Q1 2018. - Total number of orders2 was 647.6 thousand for Q1 2019, representing an increase of 111.6% from 306.1 thousand for Q1 2018.
- Number of active customers3 increased by 89.6% to 305.0 thousand for Q1 2019 from 160.9 thousand for Q1 2018.
- Total revenues reached
RMB1,175.4 million (US$175.1 million ) for Q1 2019, increasing by 46.5% fromRMB802.5 million in Q1 2018. - Gross margin was 21.1% for Q1 2019, compared to 16.4% in Q1 2018.
- Net income was
RMB15.8 million (US$2.4 million ) for Q1 2019. - Non-GAAP net income4 was
RMB19.3 million (US$2.9 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.
4 Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
Commentary
Mr. Richard Rixue Li, Chairman and Chief Executive Officer of
“The first quarter of 2019 was a constructive quarter for
“Our first quarter results get the year off to a strong start with solid GMV and revenue growth, further demonstrating the sustained consumer interest in our premium lifestyle offerings,” said Mr.
Recent Developments
- From the first quarter of 2019 to date,
Secoo continued direct collaboration efforts, adding over 220 brands to its platform. Notably,Secoo has entered into a contract with thePrada Group to offerPrada and Miu Miu products beginning in June of this year following Prada’s strategy based on distribution control and brand image protection. Other direct brand partnerships include Fossil,Ralph Lauren , Dsquared,Just Cavalli , Guidi, Marie Mercié, etc.
- During the first quarter,
Secoo added over 40 brands to its authorized portfolio of global prestige line of beauty products. In particular, Cha Ling’s limited-edition line, as well as the exclusive launch of a limited co-branded line betweenTONYMOLY and MOSCHINO during Women’s day, produced excellent sales results while adding to our followers.
- In
March 2019 ,Secoo showcased at AWE 2019 (Appliance World Expo 2019) in alliance with a number of high-end digital and home appliance brands, including highly sought-after brands such asSONY , GOOVIS,GoPro , JmGO, and more.
- In
April 2019 ,Secoo collaborated with top fashion blogger and luxury shopper “Becky” to host the first of Secoo Bloggers Thematic Shows, Becky’s Choice lifestyle show, which launched its grand opening at Secoo’s offline retail center inBeijing . This event was the first stop of Secoo Bloggers Thematic Shows, in partnership with key opinion leader in the fashion space, designed to bring the boutique lifestyle experience of domestic fashion bloggers to broader high-profile shopper demographics.
- During the first quarter,
Secoo redesigned its Discovery Channel, adding new interactive features such as topics, events, review and comments.Secoo also introduced the Discovery Channel atSecoo Mall mini program in order to broaden user engagement. These upgrade efforts increased user time spent and user stickiness on Secoo’s platform.
- In
April 2019 ,Secoo formed a strategic collaboration with CÉ LA VI, a luxury catering and entertainment brand featured with pubs, lounges and restaurants, to jointly develop offline high-end lifestyle market by leveraging each party’s core strengths.
- In
April 2019 , the White Paper on Digital Marketing Trends for Online Luxury Consumers was released at the 2019 Second China Luxury Retail Innovation International Summit. This is the third consecutive year thatSecoo cooperated withTencent on developing insights into high-profile consumers.
First Quarter 2019 Financial Results
GMV increased by 97.1% to
Total number of orders increased by 111.6% to 647.6 thousand for the first quarter of 2019 from 306.1 thousand for the first quarter of 2018.
Total revenues for the first quarter of 2019 increased by 46.5% to
Cost of revenues increased by 38.2% to
Operating expenses increased by 109.0% to
Fulfillment expenses increased by 72.1% to
Marketing expenses increased by 95.3% to
Technology and content development expenses increased by 30.5% to
General and administrative expenses increased by 560.0% to
Income from operations was
Non-GAAP income from operations for the first quarter of 2019 was
Income tax expenses were
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
Second Quarter 2019 Guidance
The Company currently expects total revenues for the second quarter of 2019 to be in the range of
The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. The Company’s ability to achieve these projections is subject to risks and uncertainties. See “Safe Harbor Statement” at the end of this press release.
Conference Call Information
The Company's management will host an earnings conference call at
The dial-in details for the live conference call are as follows:
United States: | +1-845-675-0437 |
International: | +65-6713-5090 |
Hong Kong: | +852-3018-6771 |
China: | 400-620-8038 |
Conference ID: | 5794283 |
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 approximately two hours after the conclusion of the live call until
United States: | +1-646-254-3697 |
International: | +61-2-8199-0299 |
Hong Kong: | +852-3051-2780 |
China: | 400-632-2162 |
Replay Access Code: | 5794283 |
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 U.S. GAAP, we also use non-GAAP income from operations, non-GAAP net income attributable to ordinary shareholders of
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 U.S. GAAP, and should not be considered a substitute for or superior to U.S. GAAP results. In addition, these non-GAAP financial measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as
Reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure is set forth at the end of this release.
Exchange Rate Information
This press release contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of
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
SECOO HOLDING LIMITED | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(All amounts in thousands, except for share data) | |||||||||||
For the Three Months Ended March 31, | |||||||||||
2018 | 2019 | ||||||||||
RMB | RMB | US$ | |||||||||
Revenues: | |||||||||||
Merchandise sales | 776,367 | 1,123,871 | 167,461 | ||||||||
Marketplace and other services | 26,126 | 51,516 | 7,676 | ||||||||
| | | | | |||||||
Total revenues | 802,493 | 1,175,387 | 175,137 | ||||||||
Cost of revenues | (670,673) | (927,157) | (138,151) | ||||||||
| | | | | |||||||
Gross profit | 131,820 | 248,230 | 36,986 | ||||||||
| | | | | |||||||
Operating expenses: | |||||||||||
Fulfillment expenses | (26,530) | (45,648) | (6,802) | ||||||||
Marketing expenses | (57,301) | (111,852) | (16,666) | ||||||||
Technology and content development expenses | (17,657) | (23,105) | (3,443) | ||||||||
General and administrative expenses | (7,034) | (46,242) | (6,890) | ||||||||
Total operating expenses | (108,522) | (226,847) | (33,801) | ||||||||
| | | | | |||||||
Income from operations | 23,298 | 21,383 | 3,185 | ||||||||
| | | | | |||||||
Other income/(expenses): | |||||||||||
Interest expense, net | (1,380) | (23,691) | (3,530) | ||||||||
Foreign currency exchange gains | 5,379 | 893 | 133 | ||||||||
Others | 9,112 | 23,887 | 3,559 | ||||||||
| | | | | |||||||
Income before income tax | 36,409 | 22,472 | 3,347 | ||||||||
Income tax expenses | (10,500) | (6,674) | (994) | ||||||||
| | | | | |||||||
Net income | 25,909 | 15,798 | 2,353 | ||||||||
| | | | | |||||||
Income attributable to redeemable non-controlling interest | 297 | 417 | 63 | ||||||||
Income/(loss) attributable to non-redeemable non-controlling interest | (58) | 968 | 144 | ||||||||
| | | | | |||||||
Net income attributable to Secoo Holding Limited | 25,670 | 14,413 | 2,146 | ||||||||
| | | | | |||||||
Accretion to redeemable non-controlling interest redemption value | - | (243) | (36) | ||||||||
Accretion to preferred share redemption value | - | - | - | ||||||||
| | | | | |||||||
Net income attributable to ordinary shareholders of Secoo Holding Limited | 25,670 | 14,170 | 2,110 | ||||||||
Net income/(loss) per share | |||||||||||
— Basic | 1.02 | 0.56 | 0.08 | ||||||||
— Diluted | 0.97 | 0.54 | 0.08 | ||||||||
Net income/(loss) per ADS | |||||||||||
— Basic | 0.51 | 0.28 | 0.04 | ||||||||
— Diluted | 0.49 | 0.27 | 0.04 | ||||||||
Weighted average number of shares outstanding used in computing net income/(loss) per share | |||||||||||
— Basic | 25,280,058 | 25,122,199 | 25,122,199 | ||||||||
— Diluted | 26,372,402 | 26,095,951 | 26,095,951 | ||||||||
SECOO HOLDING LIMITED | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(All amounts in thousands, except for share data) | |||||||||||
As of December 31, | As of March 31, | ||||||||||
2018 | 2019 | ||||||||||
RMB | RMB | US$ | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash | 1,034,385 | 688,736 | 102,625 | ||||||||
Time deposits | 68,632 | - | - | ||||||||
Restricted cash | 89,222 | 87,586 | 13,051 | ||||||||
Investment in equity security | 26,032 | - | - | ||||||||
Accounts receivable | 119,580 | 101,881 | 15,181 | ||||||||
Inventories | 1,712,740 | 1,981,942 | 295,319 | ||||||||
Advances to suppliers | 429,219 | 460,536 | 68,622 | ||||||||
Prepayments and other current assets | 133,551 | 211,429 | 31,504 | ||||||||
Amount due from related parties | 13,284 | 13,760 | 2,050 | ||||||||
| | | | ||||||||
Total current assets | 3,626,645 | 3,545,870 | 528,352 | ||||||||
| | | | | |||||||
Non-current assets | |||||||||||
Property and equipment, net | 56,698 | 66,670 | 9,934 | ||||||||
Intangible Asset and goodwill | 32,680 | 52,235 | 7,783 | ||||||||
Restricted cash | 2,800 | 2,800 | 417 | ||||||||
Investment in equity investees | 2,859 | 5,154 | 768 | ||||||||
Deferred tax assets | 51,214 | 62,234 | 9,273 | ||||||||
Operating lease right-of-use assets | - | 38,580 | 5,749 | ||||||||
Other non-current assets | 19,030 | 18,250 | 2,719 | ||||||||
| | | | | |||||||
Total non-current assets | 165,281 | 245,923 | 36,643 | ||||||||
| | | | | |||||||
Total assets | 3,791,926 | 3,791,793 | 564,995 | ||||||||
| | | | | | ||||||
LIABILITIES | |||||||||||
Current liabilities | |||||||||||
Short-term borrowings and current portion of long-term borrowings | 134,324 | 133,923 | 19,955 | ||||||||
Accounts payable | 498,579 | 421,607 | 62,821 | ||||||||
Amount due to related parties | 1,564 | 20,269 | 3,020 | ||||||||
Advances from customers | 66,954 | 32,200 | 4,798 | ||||||||
Accrued expenses and other current liabilities | 352,714 | 363,356 | 54,142 | ||||||||
Deferred revenue | 62,478 | 66,496 | 9,908 | ||||||||
| | ||||||||||
Total current liabilities | 1,116,613 | 1,037,851 | 154,644 | ||||||||
Non-current liabilities | |||||||||||
Long-term borrowings, excluding current portion | 1,151,560 | 1,132,761 | 168,787 | ||||||||
Long-term liabilities | 14,240 | 51,819 | 7,721 | ||||||||
Non-current operating lease liabilities | - | 24,769 | 3,691 | ||||||||
| | | | | |||||||
Total non-current liabilities | 1,165,800 | 1,209,349 | 180,199 | ||||||||
Total liabilities | 2,282,413 | 2,247,200 | 334,843 | ||||||||
| | | | | | ||||||
Mezzanine Equity | |||||||||||
Redeemable non-controlling interest | 7,587 | 8,247 | 1,229 | ||||||||
| | | | | | ||||||
Total mezzanine equity | 7,587 | 8,247 | 1,229 | ||||||||
| | | | | |||||||
| | ||||||||||
Equity: | |||||||||||
Class A Ordinary shares (US$0.001 par value, 150,000,000 shares authorized including class A shares and class B shares, 19,068,224 shares issued and 18,550,770 shares outstanding as of December 31, 2018 and March 31, 2019, respectively) | 126 | 126 | 19 | ||||||||
Class B Ordinary shares (US$0.001 par value, 150,000,000 shares authorized including class A shares and class B shares, 6,571,429 shares issued and 6,571,429 shares outstanding as of December 31, 2018 and March 31, 2019, respectively) | 41 | 41 | 6 | ||||||||
Treasury Stock (517,454 Class A ordinary shares as of December 31, 2018 and March 31, 2019, respectively, at cost) | (71,018) | (71,018) | (10,582) | ||||||||
Accumulated losses | (1,280,753) | (1,266,583) | (188,727) | ||||||||
Additional paid-in capital | 2,839,342 | 2,842,861 | 423,600 | ||||||||
Accumulated other comprehensive loss | (6,373) | (99) | (15) | ||||||||
| | | | | |||||||
Total equity attributable to ordinary shareholders | 1,481,365 | 1,505,328 | 224,301 | ||||||||
| | | | | | ||||||
Non-redeemable non-controlling interest | 20,561 | 31,018 | 4,622 | ||||||||
| | | | | |||||||
Total equity | 1,501,926 | 1,536,346 | 228,923 | ||||||||
| | | | | |||||||
Total liabilities, mezzanine equity and equity | 3,791,926 | 3,791,793 | 564,995 | ||||||||
| | | | | |
SECOO HOLDING LIMITED | |||||||||
Reconciliations of GAAP and Non-GAAP Results | |||||||||
(All amounts in thousands, except for share and per share data) | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2018 | 2019 | ||||||||
RMB | RMB | US$ | |||||||
Income from operations | 23,298 | 21,383 | 3,185 | ||||||
Add: | |||||||||
Share-based compensation expenses | 8,553 | 3,519 | 524 | ||||||
| |||||||||
Non-GAAP income from operations | 31,851 | 24,902 | 3,709 | ||||||
Net Income | 25,909 | 15,798 | 2,354 | ||||||
Add: | |||||||||
Share-based compensation expenses | 8,553 | 3,519 | 524 | ||||||
| |||||||||
Non-GAAP net income | 34,462 | 19,317 | 2,878 | ||||||
Net income/(loss) attributable to ordinary shareholders of Secoo Holding Limited | 25,670 | 14,170 | 2,110 | ||||||
Add: | |||||||||
Share-based compensation expenses | 8,553 | 3,519 | 524 | ||||||
| |||||||||
Non-GAAP net income/(loss) attributable to ordinary shareholders of Secoo Holding Limited | 34,223 | 17,689 | 2,634 | ||||||
Non-GAAP net income per shares: | |||||||||
Basic | 1.35 | 0.70 | 0.10 | ||||||
Diluted | 1.30 | 0.68 | 0.10 | ||||||
Non-GAAP net income per ADS: | |||||||||
Basic | 0.68 | 0.35 | 0.05 | ||||||
Diluted | 0.65 | 0.34 | 0.05 | ||||||
Weighted average number of shares outstanding used in computing the adjusted net income per share | |||||||||
— Basic | 25,280,058 | 25,122,199 | 25,122,199 | ||||||
— Diluted | 26,372,402 | 26,095,951 | 26,095,951 |
Source: Secoo Holding Limited