First Half Year Revenues of RMB589.6 million
First Half Year GMV of RMB 1,382.0 million
SHANGHAI, Dec. 1, 2022
/PRNewswire/ -- Boqii Holding Limited ("Boqii" or the "Company")
(NYSE: BQ), a leading pet-focused platform in China, today announced its unaudited financial
results for the first half of fiscal year 2023 (the Six Months
ended September 30, 2022).
Operational and Financial Highlights for the
First Half of Fiscal Year 2023:
- Total revenues were RMB589.6
million (US$82.9 million),
compared to RMB604.0 million in the
same period of fiscal year 2022.
- Loss from operations was RMB29.6
million (US$ 4.2 million),
representing a decrease of 64.2% compared to RMB82.6 million in the same period of fiscal year
2022.
- Net loss was RMB 29.5
million (US$4.1 million),
representing a decrease of 64.0% from net loss of RMB81.9 million in the same period of fiscal year
2022.
- Non-GAAP net loss was RMB28.5
million (US$4.0 million),
representing a decrease of 60.6% from non-GAAP net loss of
RMB72.4 million in the same period of
fiscal year 2022.
- EBITDA[1] was a loss
of RMB22.9 million (US$3.2 million), representing a decrease of 70.2%
from a loss of RMB77.1 million in the
same period of fiscal year 2022.
- Total GMV[2] was
RMB1,382.0 million (US$194.3 million), compared to RMB1,484.7 million in the same period of fiscal
year 2022.
- Active buyers were 3.8 million, representing an increase
of 16.4% from 3.3 million in the same period of fiscal year
2022.
[1]
EBITDA refers to net loss excluding income tax expenses, interest
expense, interest income, depreciation and amortization expenses.
EBITDA is a Non-GAAP financial measurement. Please refer to
"Non-GAAP financial measurement".
|
[2]
GMV refers to gross merchandise volume, which is the total value of
confirmed orders placed with us and sold through distribution model
or drop shipping model where we act as a principal in the
transaction regardless of whether the products are delivered or
returned, calculated based on the listed prices of the ordered
products without taking into consideration any discounts. The total
GMV amount (i) includes GMV of products sold by Xingmu, (ii)
excludes products sold through consignment model and (iii) excludes
the value of services offered by us. GMV is subject to future
adjustments (such as refunds) and represents only one measure of
the Company's performance and should not be relied on as an
indicator of our financial results, which depend on a variety of
factors.
|
CEO & CFO Quote
Mr. Hao Liang, Boqii's Founder, Chairman and Chief Executive
Officer commented, "Boqii was able to demonstrate its resilience,
and highlight its value proposition in the first half despite
challenges from COVID-19, supply chain, and consumer sentiment. We
saw outstanding performance from our private label, with its
revenue increasing 30.9% YoY to RMB105.1
million. Our Boqii mall also continues to be the preferred
choice for pet parents, as demonstrated by the 16.4% YoY growth to
3.8 million in active buyers. Riding on the increasing platform
stickiness and growing contributions from private labels, we also
saw an expanding gross profit margin from 18.6% last year, to 21.0%
this year. That should lay a solid foundation for our future
development."
Ms. Yingzhi (Lisa) Tang, Boqii's
Co-Founder, Co-CEO and CFO commented, "On top of our private label
development, we also saw the increasing value of prudence amid
market uncertainties. During the first half of fiscal 2023, we made
great strides in cost control, with our operating expenses dropped
from 32.2% of total revenue last year, to 26.1% of total revenue
this year. That paves the way of a significant reduction in net
loss, with the first half ending with a net loss of RMB29.5 million, down by 64.0% year-on-year from
RMB81.9 million last year. The
improving financial performance shows that our business model and
development strategy are right on track, and we look forward to
serving more pet parents and industry partners in the future, while
generating better results for our shareholders."
Financial Results for the First Half of Fiscal Year
2023:
Total revenues were RMB589.6
million (US$82.9 million),
compared to RMB604.0 million in the
same period of fiscal year 2022.
Revenues
(in million)
|
|
Six Months Ended
September 30
|
|
%
|
|
2022
|
|
2021
|
|
change
|
|
RMB
|
|
RMB
|
|
YoY
|
Product
sales
|
|
568.7
|
|
577.6
|
|
(1.5 %)
|
·
Boqii Mall
|
|
238.6
|
|
215.9
|
|
10.5 %
|
·
Third party e-commerce
platforms
|
|
330.1
|
|
361.7
|
|
(8.7 %)
|
Online marketing and
information services and other revenue
|
|
20.9
|
|
26.4
|
|
(20.5 %)
|
Total
|
|
589.6
|
|
604.0
|
|
(2.4 %)
|
Gross profit was RMB 123.9
million (US$17.4 million),
compared to RMB112.1 million in the
same period of fiscal year 2022.
Gross margin was 21.0%, representing an increase of 240
basis points from 18.6% in the same period of fiscal 2022, which is
primarily due to improvement of gross margin of private label
products and increased proportion of pet supplies and health care
products with higher margins.
Operating expenses were RMB153.8
million, representing a decrease of 21.0% from RMB194.7 million in the same period of fiscal
year 2022. Operating expenses as a percentage of total revenues was
26.1%, down from 32.2% in the same period of fiscal year 2022.
Fulfillment Expenses were RMB68.2
million, compared to RMB62.5
million in the same period of fiscal year 2022. Fulfillment
expenses as a percentage of total revenues were 11.6%, compared to
10.4% in the same period of fiscal year 2022. The increase was
primarily due to the increased shipping and handling expenses,
which resulted from temporary logistics price increases and
transportation restrictions due to the outbreak of Covid-19 in
China starting from April 2022.
Sales and marketing expenses were RMB63.5 million, representing a decrease of 29.0%
from RMB89.5 million in the same
period of fiscal year 2022. The decrease was primarily due to the
decline of advertising expenses amount to RMB26.1 million resulting from (i) the lower
expenditure for cost saving; (ii) the increased proportion of
revenue generated from more cost-efficient channels. Sales and
marketing expenses as a percentage of total revenue were 10.8%,
down from 14.8% in the same period of fiscal year 2022.
General and administrative expenses were RMB22.1 million, representing a decrease of 48.4%
from RMB42.8 million in the same
period of fiscal year 2022. The decrease was primarily due to:(i)
the decline of share-based compensation expense of RMB13.5 million, resulting form the cancellation
of options corresponding to employee departures; (ii) the decline
of staff costs amount to RMB3.7
million related to the optimization of our organizational
structure; (iii) the decline of professional fees amount to
RMB2.5 million compared with the same
period of fiscal year 2022. General and administrative expenses as
a percentage of total revenue were 3.7%, down from 7.1% in the same
period of fiscal year 2022.
Loss from operations was RMB29.6
million (US$ 4.2 million),
representing a decrease of 64.2% compared to RMB82.6 million in the same period of fiscal year
2022.
Net loss was RMB29.5
million (US$4.1 million),
representing a decrease of 64.0% compared to net loss of
RMB81.9 million in the same period of
fiscal year 2022.
EBITDA was a loss of RMB22.9
million (US$3.2 million),
representing a decrease of 70.2% compared to a loss of RMB77.1 million in the same period of fiscal year
2022.
Non-GAAP net loss was RMB28.5
million (US$ 4.0 million),
representing a decrease of 60.6% compared to non-GAAP net loss of
RMB72.4 million in the same period of
fiscal year 2022.
Diluted net loss per share was RMB0.43 (US$ 0.06),
compared to diluted net loss per share of RMB1.16 in the same period of fiscal year
2022.
Total cash and cash equivalents and short-term
investments were RMB210.3 million
(US$ 29.6million), compared to
RMB290.9 million as of March 31, 2022.
Conference Call
Boqii's management will hold a conference call to discuss the
financial results at 8:00 AM on Thursday
December 1, 2022, U.S. Eastern Time (9:00 PM on Thursday, December 1, 2022, Beijing/Hong Kong Time).
To join the conference, please dial in 15 minutes before the
conference is scheduled to begin using below numbers.
|
Phone Number
|
International
|
1-412-317-6061
|
United
States
|
1-888-317-6003
|
Hong Kong
|
852 800
963-976
|
Mainland
China
|
86
4001-206115
|
Passcode
|
1311582
|
A replay of the conference call may be accessed by phone at the
following numbers until December 8, 2022.
|
Phone Number
|
International
|
1-412-317-0088
|
United
States
|
1-877-344-7529
|
Replay Access
Code
|
9673562
|
A live and archived webcast of the conference call will be
available on the Company's investor relations website at
http://ir.boqii.com/.
About Boqii Holding Limited
Boqii Holding Limited (NYSE: BQ) is a leading pet-focused
platform in China. We are the
leading online destination for pet products and supplies in
China with our broad selection of
high-quality products including global leading brands, local
emerging brands, and our own private label, Yoken and Mocare,
offered at competitive prices. Our online sales platforms,
including Boqii Mall and our flagship stores on third-party
e-commerce platforms, provide customers with convenient access to a
wide selection of high-quality pet products and an engaging and
personalized shopping experience. Our Boqii Community provides an
informative and interactive content platform for users to share
their knowledge and love for pets.
Safe Harbor Statement
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. Statements that
are not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties, and a number of factors could cause actual results
to differ materially from those contained in any forward-looking
statement. In some cases, forward-looking statements can be
identified by words or phrases such as "may," "will," "expect,"
"anticipate," "target," "aim," "estimate," "intend," "plan,"
"believe," "potential," "continue," "is/are likely to" or other
similar expressions. The Company may also make written or oral
forward-looking statements in its reports filed with, or furnished
to, the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding such risks, uncertainties or factors is
included in the Company's filings with the SEC. All information
provided in this press release is as of the date of this press
release, and the Company does not undertake any duty to update such
information, except as required under applicable law.
Non-GAAP Financial Measures
The Company uses non-GAAP financial measures, namely non-GAAP
net loss, non-GAAP net loss margin, EBITDA and EBITDA margin, in
evaluating its operating results and for financial and operational
decision-making purposes. The Company defines (i) non-GAAP net loss
as net loss excluding fair value change of derivative liabilities
and share-based compensation expenses, (ii) non-GAAP net loss
margin as non-GAAP net loss as a percentage of total revenues,
(iii) EBITDA as net loss excluding income tax expenses, interest
expense, interest income, depreciation and amortization expenses,
(iv) EBITDA margin as EBITDA as a percentage of total revenues. The
Company believes non-GAAP net loss, non-GAAP net loss margin,
EBITDA and EBITDA margin enhance investors' overall understanding
of its financial performance and allow for greater visibility with
respect to key metrics used by its management in its financial and
operational decision-making.
These non-GAAP financial measures are not defined under U.S.
GAAP and are not presented in accordance with U.S. GAAP. As these
non-GAAP financial measures have limitations as analytical tools
and may not be calculated in the same manner by all companies, they
may not be comparable to other similarly titled measures used by
other companies. The Company compensates for these limitations by
reconciling the non-GAAP financial measures to the nearest U.S.
GAAP performance measures, which should be considered when
evaluating the Company's performance. For reconciliation of these
non-GAAP financial measures to the most directly comparable GAAP
financial measures, please see the section of the accompanying
tables titled, "Reconciliation of GAAP and Non-GAAP Results." The
Company encourages investors and others to review its financial
information in its entirety and not rely on any single financial
measure.
Exchange Rate
This press release contains translations of certain RMB amounts
into U.S. dollars ("USD") at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to USD were made at the rate of RMB7.1135 to US$1.00, the noon buying rate in effect on
September 30, 2022 in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or USD amounts referred to could be
converted into USD or RMB, as the case may be, at any particular
rate or at all.
For investor and media inquiries, please contact:
In China:
Boqii Holding Limited
Investor Relations
Tel: +86-21-6882-6051
Email: ir@boqii.com
DLK Advisory Limited
Tel: +852-2857-7101
Email: ir@dlkadvisory.com
BOQII HOLDING
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
As of
March 31,
2022
|
|
As of
September 30,
2022
|
|
As of
September
30,
2022
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
162,855
|
|
85,136
|
|
11,968
|
Short-term
investments
|
128,084
|
|
125,145
|
|
17,593
|
Accounts receivable,
net
|
49,231
|
|
96,215
|
|
13,526
|
Inventories,
net
|
109,921
|
|
107,264
|
|
15,079
|
Prepayments and other
current assets
|
116,738
|
|
100,516
|
|
14,130
|
Amounts due from
related parties
|
11,726
|
|
4,782
|
|
672
|
Total current
assets
|
578,555
|
|
519,058
|
|
72,968
|
Non-current
assets:
|
|
|
|
|
|
Property and
equipment, net
|
7,779
|
|
7,298
|
|
1,026
|
Intangible
assets
|
25,544
|
|
23,569
|
|
3,313
|
Operating lease
right-of-use assets
|
38,567
|
|
38,693
|
|
5,439
|
Long-term
investments
|
82,319
|
|
81,598
|
|
11,471
|
Goodwill
|
40,684
|
|
40,684
|
|
5,719
|
Amounts due from
related parties, non-current
|
-
|
|
8,317
|
|
1,169
|
Other non-current
asset
|
4,861
|
|
10,092
|
|
1,419
|
Total non-current
assets
|
199,754
|
|
210,251
|
|
29,556
|
Total
assets
|
778,309
|
|
729,309
|
|
102,524
|
LIABILITIES,
MEZZANINE EQUITY AND SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term
borrowings
|
161,126
|
|
142,336
|
|
20,009
|
Accounts
payable
|
94,224
|
|
79,195
|
|
11,133
|
Salary and welfare
payable
|
6,871
|
|
6,203
|
|
872
|
Accrued liabilities
and other current liabilities
|
27,324
|
|
25,471
|
|
3,581
|
Amounts due to related
parties, current
|
219
|
|
102
|
|
14
|
Contract
liabilities
|
7,007
|
|
3,208
|
|
451
|
Operating lease
liabilities, current
|
10,001
|
|
11,082
|
|
1,558
|
Derivative
liabilities
|
9,086
|
|
12,970
|
|
1,823
|
Total current
liabilities
|
315,858
|
|
280,567
|
|
39,441
|
Non-current
liabilities
|
|
|
|
|
|
Deferred tax
liabilities
|
4,847
|
|
4,269
|
|
|
Operating lease
liabilities, non-current
|
28,197
|
|
28,078
|
|
3,947
|
Other debts,
non-current
|
181,062
|
|
124,399
|
|
17,488
|
Total non-current
liabilities
|
214,106
|
|
156,746
|
|
22,035
|
Total
liabilities
|
529,964
|
|
437,313
|
|
61,476
|
|
|
|
|
|
|
Mezzanine
equity
|
|
|
|
|
|
Redeemable
non-controlling interests
|
6,522
|
|
6,844
|
|
962
|
Total mezzanine
equity
|
6,522
|
|
6,844
|
|
962
|
Stockholders'
equity:
|
|
|
|
|
|
Class A ordinary
shares (US$0.001 par value; 129,500,000 shares
authorized, 55,709,591 and
55,743,337 shares issued and
outstanding as of March 31,
2022 and September
30, 2022, respectively)
|
372
|
|
373
|
|
52
|
Class B ordinary
shares (US$0.001 par value; 15,000,000 shares authorized,
13,037,729 shares issued and outstanding as of March 31, 2022
and
September 30, 2022, respectively)
|
82
|
|
82
|
|
12
|
Additional paid-in
capital
|
3,295,336
|
|
3,291,793
|
|
462,753
|
Statutory
reserves
|
3,433
|
|
3,876
|
|
545
|
Accumulated other
comprehensive loss
|
(46,069)
|
|
(23,989)
|
|
(3,372)
|
Accumulated
deficit
|
(2,889,233)
|
|
(2,919,198)
|
|
(410,375)
|
Receivable for
issuance of ordinary shares
|
(164,746)
|
|
(110,133)
|
|
(15,482)
|
Total Boqii Holding
Limited shareholders' equity
|
199,175
|
|
242,804
|
|
34,133
|
Non-controlling
interests
|
42,648
|
|
42,348
|
|
5,953
|
Total shareholders'
equity
|
241,823
|
|
285,152
|
|
40,086
|
Total liabilities,
mezzanine equity and shareholders' equity
|
778,309
|
|
729,309
|
|
102,524
|
BOQII HOLDING
LIMITED
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
|
Six
Months Ended September 30,
|
|
|
2021
|
|
2022
|
|
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
Product
sales
|
|
577,583
|
|
568,698
|
|
79,947
|
Online marketing and
information services and other revenue
|
|
26,384
|
|
20,931
|
|
2,942
|
Total
revenues
|
|
603,967
|
|
589,629
|
|
82,889
|
Total cost of
revenue
|
|
(491,880)
|
|
(465,703)
|
|
(65,467)
|
Gross
profit
|
|
112,087
|
|
123,926
|
|
17,422
|
Operating
expenses:
|
|
-
|
|
-
|
|
|
Fulfillment
expenses
|
|
(62,519)
|
|
(68,161)
|
|
(9,582)
|
Sales and marketing
expenses
|
|
(89,454)
|
|
(63,530)
|
|
(8,931)
|
General and
administrative expenses
|
|
(42,774)
|
|
(22,066)
|
|
(3,102)
|
Other income,
net
|
|
67
|
|
242
|
|
34
|
Loss from
operations
|
|
(82,593)
|
|
(29,589)
|
|
(4,159)
|
Interest
income
|
|
9,864
|
|
4,025
|
|
566
|
Interest
expense
|
|
(12,059)
|
|
(7,193)
|
|
(1,011)
|
Other gain/ (losses),
net
|
|
405
|
|
7,190
|
|
1,011
|
Fair value change of
derivative liabilities
|
|
411
|
|
(4,534)
|
|
(637)
|
Loss before income
tax expenses
|
|
(83,972)
|
|
(30,101)
|
|
(4,230)
|
Income taxes
expenses
|
|
1,247
|
|
418
|
|
59
|
Share of results of
equity investees
|
|
834
|
|
184
|
|
26
|
Net
loss
|
|
(81,891)
|
|
(29,499)
|
|
(4,145)
|
Less: Net income
attributable to the non-controlling interest
shareholders
|
|
(3,683)
|
|
(299)
|
|
(42)
|
Net loss
attributable to Boqii Holding Limited
|
|
(78,208)
|
|
(29,200)
|
|
(4,103)
|
Accretion on redeemable
non-controlling interests to redemption
value
|
|
(283)
|
|
(323)
|
|
(45)
|
Net
loss attributable to Boqii Holding
Limited's ordinary
shareholders
|
|
(78,491)
|
|
(29,523)
|
|
(4,148)
|
|
|
|
|
|
|
|
Net loss
|
|
(81,891)
|
|
(29,499)
|
|
(4,145)
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil tax
|
|
(5,765)
|
|
22,329
|
|
3,139
|
Unrealized securities
holding loss
|
|
-
|
|
(249)
|
|
(35)
|
Total comprehensive
loss
|
|
(87,656)
|
|
(7,419)
|
|
(1,041)
|
Less: Total
comprehensive income attributable to non-controlling
interest shareholders
|
|
(3,683)
|
|
(299)
|
|
(42)
|
Total comprehensive
loss attributable to Boqii Holding Limited
|
|
(83,973)
|
|
(7,120)
|
|
(999)
|
|
|
|
|
|
|
|
Net loss per share
attributable to Boqii Holding Limited's
ordinary shareholders
|
|
|
|
|
|
|
— basic
|
|
(1.16)
|
|
(0.43)
|
|
(0.06)
|
— diluted
|
|
(1.16)
|
|
(0.43)
|
|
(0.06)
|
Weighted average
number of ordinary shares
|
|
|
|
|
|
|
— basic
|
|
67,703,830
|
|
68,841,500
|
|
68,841,500
|
— diluted
|
|
67,703,830
|
|
68,841,500
|
|
68,841,500
|
Boqii Holding
Limited
|
Reconciliation
of GAAP and Non-GAAP Results
|
(In thousands,
except % and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
Net loss
|
|
(81,891)
|
|
(29,499)
|
|
Fair value change of
derivative liabilities
|
|
(411)
|
|
4,534
|
|
Share-based
compensation
|
|
9,903
|
|
(3,567)
|
|
Non-GAAP net loss
|
|
(72,399)
|
|
(28,532)
|
|
Non-GAAP net loss Margin
|
|
(12.0 %)
|
|
(4.8 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 30,
|
|
|
|
2021
|
|
2022
|
|
|
|
RMB
|
|
RMB
|
|
Net loss
|
|
(81,891)
|
|
(29,499)
|
|
Income tax
expenses
|
|
(1,247)
|
|
(418)
|
|
Interest
expenses
|
|
12,059
|
|
7,193
|
|
Interest
income
|
|
(9,864)
|
|
(4,025)
|
|
Depreciation and
amortization .
|
|
3,885
|
|
3,815
|
|
EBITDA
|
|
(77,058)
|
|
(22,934)
|
|
EBITDA Margin
|
|
(12.8 %)
|
|
(3.9 %)
|
|
|
|
|
|
|
|
Notes for all the
condensed consolidated financial schedules presented:
|
|
Note 1: The conversion
of Renminbi (RMB) into U.S. dollars (USD) is based on the certified
exchange rate of USD1.00=RMB7.1135 on 30
September, 2022 published by the Federal Reserve Board.
|
View original
content:https://www.prnewswire.com/news-releases/boqii-announces-unaudited-financial-results-for-the-first-half-of-fiscal-year-2023-301691180.html
SOURCE Boqii Holding Limited