Ecmoho Ltd (NASDAQ:MOHO) Q2 2020 Earnings Conference Call - Final Transcript

Sep 15, 2020 • 09:00 pm ET


Ecmoho Ltd (NASDAQ:MOHO) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Ecmoho 2020 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Mr. Gary Xu. Thank you. Please go ahead.

Gary Xu

Thank you, operator. Hello everyone and thank you for joining us today for our second quarter 2020 earnings conference call. The company results were released earlier today and are available on the company IR website.

On the call today, we have Ms. Zoe Wang, Founder and Chief Executive Officer and Mr. Richard Wei, Chief Financial Officer. Ms. Wang will review business operations and the company highlights, followed by Mr. Wei, who will discuss financials.

Before we begin, we would like to remind you that this call may contain forward-looking statements made under the Safe Harbor Provision under the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current forecasts and the current market regulatory and operation conditions and relating to events that are involved known and unknown risks and uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statement. Further information regarding these and other risks and uncertainties and the factors is included in the company's filings with the US Securities and Exchange Commission. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under law.

I will now read through the prepared remarks for her.

Hello everyone. Thank you for calling-in in our 2020 second quarter earnings conference call. 2020 is a difficult year for all of us. According to NBS [Phonetic], in the first half of 2020, total retail sales fell 11% year-on-year, of which the first quarter fell 19% year-on-year and the second quarter fell 4% year-on-year. The online retail sales increased by 7.3% year-over-year in the fourth quarter of 2020. We are very happy to report stronger revenue growth in the second quarter with the revenue of $100 million, an increase of 15% year-over-year or an increase of 64% from the fourth quarter. Meanwhile, we also see significant improvement of operations such as inventory turnover days.

The sales growth in the second quarter was attributable to, one, the strong organic growth from our existing brand partners such as Wyeth Pharmaceutical, Harbin Pharmaceutical, Bayer, Wyeth Nutrition, Jiangzhong Shiliao, Perrier and Nestle. The revenue from healthcare supplements and foods segment increased by 45%, among which Wyeth Pharmaceuticals and Harbin Pharmaceuticals increased by more than 100% and the Puritan's Pride increased by 48%. Wyeth Nutrition increased by 56% year-over-year; and two, our SKU increased from 6,209 at the end of