Participants

Shanglue Xiao; Executive Chairman of the Board, Chief Executive Officer; Yunji Inc

Yeqing Cui; Senior Financial Director; Yunji In

Ethan Yu; Analyst; First Trust Group

Presentation

Operator

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's first-quarter 2024 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Yeqing Cui, Senior Financial Director; and Ms. Kaye Liu, Investor Relations Director of the company.
As a reminder, this conference call is being recorded. Now, I would like to hand the conference over to our first speaker today, Ms. Kaye Liu, Investor Relations Director of Yunji. Please go ahead, ma'am.

Hello, everyone. Welcome to our first-quarter 2024 earnings call. Before we start, please note that the call will contain forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995 that are based on our current expectations and current market operating conditions, and relate to events that involve known and unknown risks, uncertainties, and other factors of Yunji and this industry.
These forward-looking statements can be identified by terminologies such as will, expects, anticipates, continue, or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to our related documents filed with the US SEC.
Any forward-looking statements that we make on this call are based on assumptions as of today, and are expressly qualified entirely by cautionary statements, risk factors, and details of the company filing with the SEC. Yunji do not undertake any obligation to update these statements, except as required under applicable law. With that, I will now turn over to Shanglue Xiao, Chairman and CEO of Yunji.

Shanglue Xiao

(interpreted) Hello, everyone. Welcome to Yunji's first-quarter 2024 earnings call.
(interpreted) The first quarter is traditionally an off-peak season for e-commerce. We see this opportunity to further refine our operations, allow us to maintain a solid gross margin. As consumers' appetite for pursuing better life intensified, we are laser-focused on driving high-quality growth by stabilizing average order values and gaining deeper insights into our core users' consumption preferences.
(interpreted) In May, I celebrated Yunji's ninth anniversary alongside our service managers, partners, and employees. During the festivities, we unveiled several exciting new initiatives. One such initiative is our plan to provide our users with a holistic health solution.
To realize this, we will expand our presence into offline communities and establish wellness spaces, bringing our healthcare product directly to consumers. These initiatives are set to generate both part-time and full-time employment opportunities, nurturing individual entrepreneurship through our top-tier retail services.
(interpreted) Our private label beauty brand, Suye and P&S, continue to roll out new products that prove to be mega hits. These products are especially formulated with ingredients that are tailored for mature skin, mirroring the effectiveness of the leading western beauty brands.
In terms of marketing, we are actively expanding our partnerships across a variety of external channels this year. Our approach includes creating engaging content on diverse content platforms, leveraging the power of the short video platforms and harness the influence the marketing on live streaming platforms.
(interpreted) In the healthcare sector, we will continue to streamline cutting-edge manufacturing technology and a natural ingredient with medicinal properties to create products that further enrich our health supermarket metrics. Our goal is to transition Chinese families from our reactive approach to healthcare to a proactive one that emphasizes daily dietary enhancements.
As in time, we will continue to innovate, and enhance the value community service experience, and deploy advanced AI applications. In addition, we will further evolve our transition to cultivate the professional house nutritionists who provide value-added services beyond our products. Our mission is to ensure that every family has access to a professional health adviser.
(interpreted) While apparel has historically been a less prominent to (inaudible), we have seen increasing demand from users and our service managers for our broader range of products in this category. With the emergency of the short video trend, we see a golden opportunity for Yunji's apparel category to become an integral component of our beauty segment.
This year, we've embraced the integration of a short videos and the live streaming, hosting weekly live streams on Yunji's official channel. While our primary focus is on apparel, we also feature our beauty and food categories to bolster Yunji's image as a beauty brand. This approach allows us to infuse a sense of fashion into our offerings, while ensuring they remain practical.
(interpreted) Every industry is currently grappling changes and challenges, and the new consumption industry in which we operate is no exception. However, we firmly believe that where challenges exist, opportunities also thrive. At Yunji, we harness our entrepreneurial spirit, leverage our nine-year experience in the realm of the social e-commerce within the WeChat ecosystem and keep our finger on the pulse of the video channel trends.
Over the past six months of exploring the content creation and live streaming video channels, we have gradually developed a business model that fully aligns with Yunji's entrepreneurial DNA. Our focus is on nurturing leaders in real channels who can produce and distribute high-quality content on large scale. To streamline product promotion and make communication more efficient, we equip our service managers with new skills, enabling them to keep the business with nothing more than a mobile phone.
We will include aspiring ordinary people to become video channel leaders, providing them with training in creating product promotional short videos and live streaming and helping them stay updated with new capabilities. Our video channel leader incubation program, which was powered in the first quarter, is set for a more extensive rollout in the second quarter.
(interpreted) The WeChat community (technical difficulty) Yunji and now the advent of short videos committed to engage Yunji with greater vibrancy and efficiency. We aspire to be the trusted partner that empowers our users to lead a healthy and beautiful life.
(interpreted) With that, I will turn the call over to Mr. Cui, our Senior Financial Director, to go through the financial results.