Ecmoho Ltd (NASDAQ:MOHO) Q2 2020 Earnings Conference Call - Final Transcript
Sep 15, 2020 • 09:00 pm ET
2019 to 7,432 and the number of co-operative rent increased from 70 to 78; three, the repurchasing rate rose from 35% from the end of 2019 to 37% this year -- this quarter; four, our layout on R&D in the upstream of the supply chain began to contribute to the revenue.
Although we achieved the growth and the improvement in new sales, scale and operations, we still face challenges from pandemic. To increase consumers' consumption confidence, we increased marketing and the promotions during event of 618 [Indecipherable], which resulted a low GP margin in the second quarter, around 17.2% flat with the first quarter, but down 5% from the same quarter last year. We believe with the rebound of our consumers' consumption, power of our spending, marketing and promotion, we will return to normal levels under the GP margin, under the OP margin, we will recover accordingly.
As to our strategy play-out in future, we started to [Indecipherable] competitive barrier at a leading integrated solution provider in non-medical health and beyond this marketplace and actively deploying new growth driver; one, in the upstream of the industry trends, we plan to gradually invest in research and development companies in the health and the wellness industry. We plan to establish our research and development center in Sichuan province. Based on the capability of research and the production, we explore new services model and signed contract on research and customization. In future, we will continue to enhance investment on R&D in the upstream of the industry trends and construct demand-supply chain model, which we believe to contribute revenue from second half of the year.
Secondly, in the mainstream of our industry trend, we actively explore our strategy partner, expanding from public domain to private domain and established private domain marketing and the service companies in Guangdong and Xinjiang. With private domain channels, we also empower small to middle-sized offline stores by private applied provides SaaS and live stream to improve their competitiveness. Third, in the downstream of the industry trend, we built-up a complete mid-term for the consumer management and service, including pop [Phonetic], CRM, live-stream and private domain layout, which is estimated to see achievement in the second half year.
That concludes the prepared remarks. I will now turn the call over to Richard.
Thank you, Gary. Now I would like to go over the second quarter 2020 financial results in more detail. We believe year-over-year comparisons are the best way to review our performance. All percentage changes I'm going to give will be on that basis unless otherwise stated. Once again, please note that all figures mentioned will be in US dollars.
Overall, our total net revenues increased by approximately 15% to $100.5 million. The increase was primarily driven by strong growth from mother and childcare products, health supplements and foods and personal care products. Gross margin was 17.2% compared with 22.2% in the year ago period. The decline in gross margin was caused by lower gross margin on products sold