Only the total net revenue for the first quarter of the year was 701.9 million U.S. dollars rose 125.9%

Absrtact: The only product released today, as of March 31, the first quarter of fiscal year 2014 without the audit earnings. The report showed that the total net revenue for the first quarter was 701.9 million U.S. dollars, up 125.9% from 310.7 million US dollars in the same period last year; the net profit for the company's shareholders is 26.6 million

The only product released today, as of March 31, the first quarter of fiscal year 2014 without audit earnings. The report showed that the total net revenue in the first quarter was $701.9 million, a 125.9% increase from 310.7 million US dollars in the same period last year, and a net profit of 26.6 million dollars for the company's shareholders, up 5.8 million from the same period last year.

After the release of the earnings, only the Chairman and CEO Shenya and CFO Yangdonghao and other executives attended the subsequent conference call to interpret the earnings points and answer the analyst questions.

The following analysis is the main part of the question and answer session:

Deutsche Bank analyst: How many of the 7.4 million active users and 20 million of total orders in the first quarter came from the Lok Bee Net? How much has it contributed to the open platform business of the product Council? I calculate for myself, your customer unit price is lower than last quarter, this is because Le bee net commodity price is relatively low? or other reasons?

Yangdonghao: The first quarter, our 7.4 million active users have probably 100万来 from the Lok Bee Network, the total order, there are 130万来 from the Lok Bee network.

Your calculation is correct, the first quarter of our customer unit price compared to the fourth quarter of last year, the ring did fall, mainly because the customer price of the cosmetics orders of Lok Bee net relatively low.

JPMorgan analyst: My question is about the expansion of the product category. As you mentioned earlier, you will be able to enrich the product category through your own development and external acquisitions. In March, it also tested the car's flash-purchase service. I'd like to know what areas you mainly focus on in product category expansion?

Shenya: Only the development of the product will always adhere to the clothing and shoes and hats dominant position, in addition to cosmetics, home and maternal and child business is also an important direction, in fact, in other categories we will not do too much action.

The last time we bought a car was to try the water, because the car can bring us a lot of male customers. In the future we will expand the category, but also adhere to the main category direction.

Macquarie Analyst: Will the current revenue from cosmetics business account for the proportion of total revenue? Cosmetics business gross margin, operating profit margin at present what? Besides, you mentioned that there are 1 million cosmetic users, contributed 1.1 million to 1.2 million of the order amount, so that the cosmetics or Le bee net users purchase rate of only about 1.2, and only the traditional business users purchase rate is about 3, then do you have plans to take measures to increase the frequency of cosmetics users purchase?

Yangdonghao: First of all, 1 million active users contribute 1.3 million orders is not the first quarter of the whole quarter, but since February 14 only the goods will complete the acquisition of the Lok Bee Network began to March 31 between the end of the first quarter of about 1.5 months of data. However, your calculation is correct, cosmetics users repeat purchase rate than only the core business apparel category users of the purchase rate is low, we will focus on improving operational capabilities, improve this part of the user's repeat purchase rate.

Le Bee net in the first quarter of total revenue contribution is small, only less than 5%, so we did not disclose this figure. In the first quarter, our total amount of cosmetics, including the value of cosmetics on the internet and the cosmetic turnover on the open platform, was about 167 million dollars,

As far as we know, only products will be ranked second in the cosmetics field, and we are confident that we can soon become the largest cosmetics sales platform.

Bank of America Merrill Lynch analyst: only the first quarter of the increase in gross profit margin is due to product category optimization, or as the scale of business growth, your suppliers and the bargaining power of the increase caused?

The second question about technology, you recruit some new technicians, can you introduce the only product development plan? For example, improve the user's product recommendation accuracy after logging in, as well as other techniques used to improve user repeat purchase rate.

Finally, can you tell me what your tax rate is in the first quarter?

Yangdonghao: The increase in gross margin in the first quarter was mainly due to the increased bargaining power of suppliers as a result of the increase in revenue size, and the development of our open platform business also contributed to the increase in gross profit margins.

Shenya: Only products will be invested in technology, the total number of technicians is currently around 850, by the end of this year will reach 1500, and we will spend a lot of money in this area, because the company believes that the future of competition in technology.

Only products in the application of large data and personalized recommendations also put a lot of energy, in the two quarter, we have achieved a guarantee that the recommendations made by male and female users are not the same, and that they have achieved a recognition of the purchasing history and purchasing power of the user, and that we will soon have much more progress, More accurate recommendations also ensure that future user repeat purchase rate will increase.

Oppenheimer Analyst: Among the 1 million active users of the Le Bee network, how many of them have been buying products at the same time? What are your strategies for cross-selling?

Shenya: At present, the Lok Bee net and only product will customer group or independent, the future will achieve joint landing and account access, and so on, but now we are not anxious, because the users of the Lok Bee Network we can also cultivate, only the users will be able to train, so there is no rush to cross sales.

86 Securities analyst: Could you tell me how much your online sellers increased in the first quarter? How many third party sellers and brands are there? How much did the top 20 or Top 30 sellers contribute to the company's revenues or total transactions?

The second question, in terms of acquisitions, you just said will focus on clothing, shoes and hats, home and maternal and child products, then future acquisitions will happen in these areas?

Shenya: Only the future growth of goods will mainly depend on their own growth, mergers and acquisitions just to do a little bit of supplement, we will not increase their sales to carry out crazy mergers and acquisitions. Only the product will currently cooperate with 9,966 brands, the top ten brands contributed to the total sales of about 8%.

If there are mergers and acquisitions in the future, specific areas are not necessarily, as long as the overall business of our development, to attract customers, we will make some attempts.

Credit Suisse analyst: What is the proportion of male users? What is the percentage of male users if the number of users reaches 20 million or 30 million orders of magnitude? Where do you try to get a male user? Besides, can you reach 20 million or 30 million levels of active users by relying primarily on female users? What are your plans for product category expansion for male users?

Shenya: The current structure of the user is mainly female, but the proportion of male users also reached 25%, although each year is about 25% of the ratio, but the absolute number of annual doubling, so we do not worry about the future of male users will be less.

Female users of the only product will be more enthusiastic flash mode, we can also recognize the majority of female users, but we are not only for the entire product category for women, there are many men's, 3 C and home appliances products, suitable for men. We love the same as male users, and in the future we will expand some of the smaller categories that male users prefer.

However, we believe that the proportion of men and women who can only be present is acceptable.

Nomura Securities analyst: My question is about the cooperation between the commodities and Tencent Micro-trust. Can you tell me about the revenue, conversion, and other data from the micro-letter contribution? Does this data meet your expectations? In addition, Tencent's investment in Jingdong will affect the future of the only product will and micro-letter cooperation? There is also a question about the tax rate, the first quarter seems very high, whether because the loss of Lok Bee Net is not deducted from the profit? What are the future tax trends?

Shenya: Our cooperation with the micro-letter has started, under the micro-Credit bank card every day we sell brands, is still in the development phase. We did not disclose the information because it has not been agreed by Tencent. Micro-letter is an open, large space platform, we believe that the future cooperation will be very large space.

The cooperation between Jingdong and Tencent has no pressure on us because micro-letters are open platforms. As an electric dealer, we have to develop our own mobile business, in addition to using microblogging or micro-credit platforms. At present only the goods will own mobile business development is very good, the first quarter of 36% sales from the mobile end, by April to 43.6%.

Yangdonghao: Our first-quarter high tax rates are related to the adjustment required by the US General accounting standards, in fact, the company's quarterly disclosures of non-US GAAP figures are more accurate and more reflective of the company's tax payments in operation.

HSBC analyst: Can you forecast the business development of the only commodities meeting in the next 3 years? In addition, how is the warehouse storage capacity of the company? Is it possible to provide a timetable for the newly opened warehouse?

Yangdonghao: We can't predict the two-quarter revenue because the business is growing so fast that it's hard to give accurate predictions.

Warehousing, the only goods will spend 200 million of dollars to help the company's total storage space over the next three years doubled, from the current 350,000 square meters to the end of 2016 to 700,000 square meters. The first self-built warehouse will be put into operation before the end of this year.

Shenya: For future development plans, the first step is to expand the user base, second, to improve the user experience, and the third is to use more technical capabilities to improve our operations, such as the promotion of mobility.

Analyst: What is the proportion of the turnover of the platform that is currently contributed by the one or two-line city to other cities? How will this ratio change in the future? What is the impact on company profitability?

Shenya: Only products in the one or two-line city is actually very strong, many people think that only the goods will be attracted to the three or four-line city users. But in fact, up to today, our one or two-line city user turnover accounted for more than three or four lines of cities, the current first-tier city users contribute to the turnover is 12%, second-tier cities contribute 39%, the rest from the three or four-line cities.

In the future, all cities in China are important to us, the company has no regional focus, we are doing business throughout China.