The total net revenue of the last quarter of Poly-Mei excellent is 166 million USD

Absrtact: March 18 News, Poly-Mei Excellent products (Nyse:jmei) today released the financial year 2014 as at December 31, 2014, the quarter and the whole year without the audit earnings. The report shows that the total net revenue of Poly-Mei products in the quarter of 166 million U.S. dollars, compared with the same period last year, 140.1 million U.S. dollars growth

March 18 News, poly-beauty Products (Nyse:jmei) released today as at December 31, 2014 of the 2014 fiscal year the end of the quarter and the entire year without the audit earnings. According to the report, the total net revenue of the company in the last quarter was 166 million U.S. dollars, which grew 18.5% from 140.1 million US dollars a year earlier, while the net profit for ordinary shareholders was 10.7 million U.S. dollars, compared with a net loss of 15.5 million U.S. dollars attributable to ordinary shareholders in the same period last year.

After the release of the earnings, Poly-Mei Excellent products founder, chairman of the Board of Directors and CEO Chen Au, Poly-United States excellent product CFO Gao Meng, gathers the United States excellent product CFO Zheng and other executives attended the subsequent conference call, interpretation of the earnings points and answer the analyst questions.

The following are the main elements of the analyst question and answer session:

Days Hao Capital analyst Hou Xiaotian: I have two questions, first of all, about the company's active users, the four quarter of the number of active users of the United States and the 8% per cent chain, the number of active users in the first quarter of 2015 has changed? What is your strategy for acquiring users in 2015?

The second question about Poly-Mei's Cross-border Sea Amoy business "top speed duty-free shop", the business has recently gained momentum, can provide some of the operation of the business data, such as GMV (total turnover), the number of assigned brands, active users, SKU (inventory unit) and so on?

Gao Meng: About the number of active users, as we mentioned before, the fourth quarter of 2014 is a transitional phase for the United States, we are through the department store counters to carry goods for sale, as well as direct cooperation with the brand and other ways to see a part of the original Third-party sales business, and we also need to rely on " Top-speed duty-free shop "on the best performance to enrich the United States product category." To 2014 years of the Four Seasons belong to a transition period, due to the above adjustment in the last quarter of our product portfolio has not reached the ideal state, by the end of December 2014, "Top speed duty-free shop" business began to take off, at this time we also returned to the ideal product portfolio of the United States expected. As a result, the number of active users in the fourth quarter was only due to the quarterly business adjustment and transition.

As we can see from our revenue forecasts for the first quarter of 2015, we expect the company's future growth to be largely dependent on the number of active users. As for how to obtain more users, we will be through the provision of better products, better supply chain, to provide more favorable prices, to provide better logistics and other aspects to attract users, relying on these measures, the first quarter of 2015, the current number of active users on the chain growth is very good.

On the second issue, we do not disclose the details of the "Top speed duty-free shop" overseas business, because we use different methods of procurement and order, this business is mainly operating beauty products. If you log on to the official website of the United States, you will find that "speed overseas purchase" has become a significant part of the company's business, and is also the company's 2015-year performance growth is the main driving force.

Hou Xiaotian: The last sensitive question, on the quality of products and true and false aspects, has been, we have also seen a lot of relevant media reports, Poly-Mei in the fake problem has been facing a relatively large pressure, then the future, you will take what action to allow users to buy from the United States platform on the quality of products completely at ease?

Gao Meng: At present, beauty products are 100% are the United States to operate their own, that is, beauty products are entirely by our own procurement. Specifically, we will purchase a small part from the department store counter, the remaining beauty products are directly from the authorized brand to obtain, so, from our source of supply, users will not face any risk of buying fake.

However, I think your question is mainly about how we convey to the user the information that the beauty only sells the real goods, because the reports you read are directed at the user and affect the user's decision. We will take several measures in this regard, one is the establishment of the Real Goods Alliance, to win the trust of users, but let users to inspect their own, users can follow the product on the verification code to the brand site on their own inspection of the authenticity of products, poly Beauty itself will provide all kinds of authentic documents, while Even if from the source of supply to look at the basic we have no fake risk, we will still strive to ensure that 100% of the goods in the shipment before delivery through our self-test system.

Macquarie Securities analyst: I have two questions, first, can you disclose the proportion of the current sales of apparel business to total net turnover (GMV)? Second, in terms of performance expectations, can you disclose the future operating expenses of the "Top speed duty-free shop" business and compare with the original third party cosmetics business operating expenses?

Gao Meng: From the adjustment of the last quarter, now basically can say, after four quarters of the United States third party platform sales of products have no cosmetics, basically all are clothing and accessories products, the fourth quarter, the third party platform sales accounted for the total net GMV ratio of about 34%.

In terms of operating expenditure expectations, the United States "top speed duty-free shop" business of the performance of each order is indeed slightly higher, in addition, other operating expenses are basically the same as the previous Third-party platform sales.

BofA Merrill Lynch analyst: You expect gross income from 45% to 50% Year-on-year in the first quarter of 2015, what is the expected quarterly GMV and user growth? How much of the GMV is in the cosmetics and apparel business?

The second question is about the "top speed duty-free shop" in the US and overseas, what is the profit margin of this business? Will the first quarter of 2015 and the 2015 FULL-YEAR profit rate maintain the level of the fourth quarter of 2014?

Gao Meng: On performance expectations, we generally do not give specific business expectations, but it can be said that our first quarter of the growth of the chain of income mainly from the "speed duty-free shop."

On the income contribution of different product categories, as we mentioned just now, the "Top speed duty-free shop" overseas purchase business when the current almost all cosmetics, and overseas business is the first quarter performance growth of the main driving force, with these two points you can conclude that our first quarter income growth mainly by the cosmetics category contribution. Of course, clothing and accessories products will continue to quantify the growth of disregard, but this year we will focus on the development of "speed duty-free shop" sea Amoy business.

In addition, we do not separately disclose the profit margin of the US-US overseas purchase business, because we have adopted a different procurement and compliance process to provide users with more competitive prices.

Our free brand business has the same gross profit margin as before, the fourth quarter of 2014, cosmetics profit margin of 25.3%, this is not the normal profit margin performance, due to business adjustment, the fourth quarter we paid a one-time to third-party merchants a return compensation. In 2015, the profit margin of cosmetics will increase, perhaps 27% or higher.

Barclays Capital analyst: My first question, regarding the first quarter of 2015 expenditure on marketing, in view of the great attention of the "Top speed duty-free shop" business, you should make a lot of investment in the promotion of this business, can you announce the fourth quarter of 2014 marketing expenditure on the business? And the change of operating profit margin in the first quarter and year of 2015?

The second question, according to the information you provided in the earnings bulletin, Poly-mei "speed duty-free shop" has become China's largest cross-border electricity business platform, then your specific market share is how much?

Gao Meng: Marketing, although the overseas purchase business has attracted a lot of attention, but all along, we have carried out a lot about the United States and the quality of the brand investment, that is to say, the user to the Hong Kong overseas purchase business does not substantially increase the company's promotional costs. Therefore, I expect the first quarter of the marketing expenditure should be the same as before, of course, we will reserve the option to adjust the promotional expenses at any time.

As for the United States in the Sea Amoy website industry market share, if you go to see the government method of documents, you will find that all of China's Cross-border electric power platform, according to the documents provided in the warehouse, parcels, user data, you can calculate the market share of each company, we calculate from these data is the market first.

Credit Suisse analyst: Recently, a number of major brands in the cat opened flagship store, the global scope, China's e-commerce reputation is also growing, do you feel that the current and foreign brands to discuss cooperation has become easier?

Gao Meng: Although we see a lot of brands in the days of Cats open shop, but in fact, for the same brand, we provide sales value is always higher than the cat, to our current size, we and any international brand negotiations are no problem, but also some brands such as Givenchy, chose to Poly-Mei as its world's first home appliance business partners.

Oppenheimer Analyst: I have two questions, first of all, regarding the gross profit margin of overseas purchases, what do you expect in the long run for the gross profit margin of the business? Can you keep it at the current level?

Second, you recently announced the gilt with foreign luxury flash-purchase websites, what opportunities do you think this will bring to the United States?

Gao Meng: About us overseas purchases of gross margin, I mentioned before, any cosmetics retailers around the world have a strong bargaining power, in gross margin has never encountered too much problem. Moreover, the United States overseas purchase is our current business focus, we will not expand its own brand business, so just said that the beauty of cosmetics products, the profit margin can reach at least 27%.

About Poly-Mei and gilt cooperation, we feel that this is a mutually beneficial cooperation, gilt on its official microblog also said that Poly-Mei is its strategic alliance, can be purchased from the top designer of gilt products, the introduction of China. From the point of view of Poly-Mei excellent products, this is also a part of the strategy of overseas buying.