Secoo Holding Limited (NASDAQ:SECO) Q3 2019 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 08:00 am ET

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Secoo Holding Limited (NASDAQ:SECO) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello, ladies and gentlemen. Thank you for standing by for Secoo Holding Limited Third Quarter 2019 Earnings Conference Call. [Operator Instructions]. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded.

I will now turn the call over to your host, Ms. Jingbo Ma, Board Secretary of the Company. Please go ahead, Jingbo.

Executive
Jingbo Ma

Hello, everyone. And welcome to the third quarter 2019 earnings conference call of Secoo Holding Limited. The Company's results were issued via newswire services earlier today, and have been posted online. You can download the earnings press release and sign up to the Company's email alerts by visiting the IR section of our website at ir.secoo.com.

Mr. Richard Li, our Founder, Chairman and Chief Executive Officer; and Mr. Shaojun Chen, our Chief Financial Officer will start the call with their prepared remarks, followed by a question-and-answer session. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the Company's results may be materially different from the views expressed today. Further information regarding this and other risks and uncertainties is included in the Company's registration statement on Form F-1 and Form 20-F as filed with the US Securities and Exchange Commission.

The Company does not assume any obligation to update any forward-looking statement, except as required under applicable law. Please also note that Secoo's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Secoo's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

I will now turn the call over to our Chairman and CEO, Mr. Richard Li. Please go ahead.

Executive
Richard Rixue Li

[Foreign Speech] Hello, everyone, and thank you for joining us today.

[Foreign Speech] We are pleased to report Secoo's growth momentum in the quarter has carried over from the first half of 2019, and delivered another period of solid operational and financial results. This quarter, our GMV increased by 66.8% year-over-year to RMB3.66 billion, underpinned by our successful execution of corporate strategies. As of December, the number of active customer increased 58.7% year-over-year to 482,500, of which 69.6% have paid memberships.

Our business continued to benefit from the purchasing power and the secular growth of China's middle class, driving the growing demand for luxurious good and high-end lifestyle offering both our on and off platform.

To aid this, Secoo maintains a strong focus on improving our platform's customer service capacity by utilizing leading-edge technologies, such as AI, Big Data and cloud services, in addition to our vibrant boutique product and service portfolios, integrated with intelligent operating program, so as to provide the best possible luxurious shopping experience to consumers in China.

[Foreign Speech]

These increases improved the brand awareness and influenced around domestic and overseas market. They not only continue to expand and