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

Sep 15, 2020 • 09:00 pm ET

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

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Q & A
Operator
Operator

[Operator Instructions]

Executive
Richard Wei

While we are waiting for -- sorry.

Operator
Operator

Sorry. Please go ahead.

Executive
Richard Wei

Are there anyone on the line?

Operator
Operator

No, we have no questions on the line at this time.

Executive
Richard Wei

Sure. Okay. While waiting for questions, let me just read some questions that we received in email in the last couple of days and we'll go through these questions. First one is, how has the COVID-19 pandemic affected the types of products that consumers buy from Ecmoho and what products [Indecipherable] in Q2 and what products do you expect to see high demand in the second half of this year. And additionally, how did pandemic affect industry consumer categories and the company?

Executive
Zoe Wang

Okay. I will speak Chinese. [Foreign Speech]

Executive
Gary Xu

I will translate Ms. Zoe's answer into English. Consumer habits on online shopping have been captive because of pandemic meanwhile consumer would like to pay more attention on family and the personal health management with demand for health products and the depressed the demand for non-health necessities. Revenues from health supplements and food increased by 45% year-on-year, among which GSK [Phonetic], Harbin Pharmaceutical increased by more than 100%, Puritan's Pride increased by 48% while the revenue declined by 9% year-on-year for Perrier and 33% year-on-year for A.H.C. which are both non-health necessities. And our total net revenue increased by 15% year-on-year in this quarter.

Executive
Richard Wei

Another question, I mean that is the way it is done. Zoe, please explain the company's growth strategy and earnings drivers.

Executive
Zoe Wang

Okay. [Foreign Speech] Gary?

Executive
Gary Xu

I will have to translate it in English. As to our strategy laid out to future, we started two, three things, the core competitive barrier at a leading integrated solutions provider from medical health and wellness market and actively deploy new growth driver [Technical Issues] health-related companies and non-health-related companies who want to turn to health company to do R&D and produce customized product through our data analysis and the investments in manufacture and R&D. And second, in the mid-stream of the industry churn, we have invested in new channels and new capex. We also empower small-to-mid-sized offline stores by provider and live-stream to improve their competitiveness. And as of the end of second quarter, we already had more than 8,000 small-to-medium-sized offline stores. And the third, in the downstream of the industry trends, we invested into private domain, which would help to improve the consumer stickiness and the service satisfactory. Henceforth, we keep investing on SaaS, increasing of live-stream to empower the end-consumers and retailers. We believe that our current -- strategically, we not only consolidate the company's leading position in the non-medical industry, but also become promising [Indecipherable] in the coming years.

Executive
Zoe Wang

Richard?

Executive
Richard Wei

Okay. Next question. For the upcoming Singles' Day also known as 11/11 shopping event, what are brand expectations and how have brands promotion budgets changed compared to last year?

Executive
Zoe Wang

Okay. [Foreign Speech]

Executive
Gary Xu

Due to the pandemic, we think this year Singles' Day 11/11 shopping event is the the year we think most attendees in the [Indecipherable] to a