EX-99.1 2 dp174792_ex9901.htm EXHIBIT 99.1

Exhibit 99.1

 

Boqii Announces Fourth Quarter and Full Fiscal Year 2022

 

Unaudited Financial Results

 

Fourth Quarter Revenues of RMB249.9 million, up 8.4% year-over-year

 

Full Year Revenues of RMB1,186.4 million, up 17.4 % year-over-year

 

SHANGHAI, China, June 6, 2022 (PRN Newswire) -- Boqii Holding Limited (“Boqii” or the “Company”) (NYSE: BQ), a leading pet-focused platform in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended March 31, 2022.

 

Fiscal Q4 2022 Operational and Financial Highlights

 

·Total revenues were RMB249.9 million (US$39.4 million), representing an increase of 8.4% from RMB230.4 million in the same quarter of fiscal year 2021.

 

·Net loss was RMB22.2million (US$3.5 million), representing a decrease of 46.7% from net loss of RMB41.5 million in the same quarter of fiscal year 2021.

 

·Adjusted net loss was RMB23.5 million (US$3.7 million), representing a decrease of 39.7% from adjusted net loss of RMB38.9 million in the same quarter of fiscal year 2021.

 

·EBITDA1 was a loss of RMB18.7 million (US$2.9 million), representing a decrease of 51.9% from loss of RMB38.8 million in the same quarter of fiscal year 2021.

 

·Total GMV2 was RMB606.0 million (US$95.59 million), representing an increase of 9.4% from RMB553.7 million in the same quarter of fiscal year 2021.

 

·Active buyers were 1.5 million, representing an increase of 14.8% from 1.3 million in the same quarter of fiscal year 2021.

 

Fiscal Year 2022 Operational and Financial Highlights

 

·Total revenues were RMB1,186.4 million (US$187.2 million), representing an increase of 17.4% from RMB1,011.0 million in the fiscal year 2021.

 

·Net loss was RMB132.8 million (US$21.0 million), representing a decrease of 31.3% from net loss of RMB193.2 million in the fiscal year 2021.

 

·Adjusted net loss was RMB121.2 million (US$19.1 million), representing a decrease of 18.9% from adjusted net loss of RMB149.6 million in the fiscal year 2021.

 

·EBITDA was a loss of RMB121.3 million (US$19.1 million), representing a decrease of 31.4% from loss of RMB176.9 million in the fiscal year 2021.

 

·Total GMV was RMB2,907.2 million (US$458.6 million), representing an increase of 19.4% from RMB2,435.2 million in the fiscal year 2021.

 

·Active buyers were 5.0 million, representing an increase of 30.4% from 3.8 million in the fiscal year 2021.

 

_________________

 

[1]EBITDA refers to net loss excluding income tax expenses, interest expense, interest income, depreciation and amortization expenses. EBITDA is a Non-GAAP financial measurement. Please refer to “Non-GAAP financial measurement”.

 

[1]GMV refers to gross merchandise volume, which is the total value of confirmed orders placed with us and sold through distribution model or drop shipping model where we act as a principal in the transaction regardless of whether the products are delivered or returned, calculated based on the listed prices of the ordered products without taking into consideration any discounts. The total GMV amount (i) includes GMV of products sold by Xingmu, (ii) excludes products sold through consignment model and (iii) excludes the value of services offered by us. GMV is subject to future adjustments (such as refunds) and represents only one measure of the Company’s performance and should not be relied on as an indicator of our financial results, which depend on a variety of factors.

 

 

 

CEO & CFO Quote

 

“ Despite challenges brought by Covid-19 and various unprecedented changes in Fiscal 2022, we still delivered strong results that shows steady growth in all four quarters. Our Full year GMV grew 19.4% to RMB2.9 billion, and active buyers up by 30.4% to 5.0 million.” Mr. Hao Liang, Boqii’s Founder, Chairman and Chief Executive Officer commented, “Under the continuing influence of Covid-19 and the dynamic pandemic control policy, we strengthened our supply-chain and helped procure necessary supplies to our community across 12 districts in Shanghai within a short period of time. And we continued to expand our portfolio of quality content, products, and services to acquire competitive advantages in the complex economic environment. "

 

Ms. Yingzhi (Lisa) Tang, Boqii’s Co-Founder, Co-CEO and CFO commented: “We had a solid fiscal year with a 17.4% year over year revenue growth and a 30.4% increase in active buyers. For the full year of 2022 was a year of setting new record, with revenue reaching nearly RMB1.2 billion and gross profit margin reaching 20.5%. These excellent results were driven by our 5.0 million spending customers. We expect to see the trend continue long into the future as we expand our portfolio offerings, strengthen our supply-chain and establish more key Boqii experience touchpoints. We believe the continuous growth momentun from active buyers and gross profit margin will allow us to capture more opportunities in the challenging pet market." 

 

Fiscal Q4 2022 Financial Results

 

Total revenues were RMB249.9 million (US$39.4 million), representing an increase of 8.4% from RMB230.4 million in the same quarter of fiscal year 2021. The increase was primarily due to the continued organic growth of our business.

 

Revenues
(in million)		   Three Months Ended March 31   %
  2022   2021   change
  RMB   RMB   YoY
Product sales   242.3   225.0   7.7%
· Boqii Mall   96.5   87.4   10.4%
· Third party e-commerce platforms   145.8   137.6   6.0%
Online marketing and information services and other revenue   7.6   5.4   39.3%
Total   249.9   230.4   8.4%

 

Gross profit was RMB53.7 million (US$8.5 million), representing an increase of 18.7% from RMB45.3 million in the same quarter of fiscal year 2021.

 

Gross margin was 21.5%, representing an increase of 190 basis points from 19.6% in the same quarter of fiscal 2021.

 

Operating expenses were RMB78.3 million, representing a decrease of 3.8% from RMB81.4 million in the same quarter of fiscal year 2021. Operating expenses as a percentage of total revenues was 31.3 %, down from 35.3% in the same quarter of fiscal year 2021.

 

·Fulfillment Expenses were RMB33.9 million, compared to RMB24.0 million in the same quarter of fiscal year 2021. Fulfillment expenses as a percentage of total revenues were 13.6%, up from 10.4% in the same quarter of fiscal year 2021. The increase was primarily due to increased shipping and handling expenses, which resulted from temporary logistics price increases and transportation restrictions due to the outbreak of Covid-19 clusters in China starting from January 2022.

 

·Sales and marketing expenses were RMB33.3 million, compared to RMB38.8 million in the same quarter of fiscal year 2021. Sales and marketing expenses as a percentage of total revenue were 13.3%, down from 16.8% in the same quarter of fiscal year 2021. The decrease was primarily due to decrease of advertising expenses amount to RMB9.6 million and increase of staff costs amount to 2.2 million compared with the same quarter of fiscal year 2021.The decrease of advertising expenses was primarily due to the increased proportion of revenue generated from more cost-efficient channels.

 

·General and administrative expenses were RMB11.2 million, representing a decrease of 39.8% from RMB18.6 million in the same quarter of fiscal year 2021. General and administrative expenses as a percentage of total revenue were 4.5%, down from 8.1% in the same quarter of fiscal year 2021. The decrease was primarily due to:(i) the decrease of share-based compensation expense of RMB2.7 million compared with the same quarter of fiscal year 2021; (ii) the decrease of professional fees of RMB2.4 million incurred in connection with our IPO in the same quarter of fiscal year 2021; (iii) the decrease of research and development expense amount to RMB1.8 million compared with the same quarter of fiscal year 2021.

 

 

 

Operating loss was RMB24.4 million (US$3.8 million), representing a decrease of 32.4% from RMB36.1 million in the same quarter of fiscal year 2021.

 

EBITDA was a loss of RMB18.7million (US2.9 million), representing a decrease of 51.9% from loss of RMB38.8 million in the same quarter of fiscal year 2021.

 

Net loss was RMB22.2 million (US$3.5 million), representing a decrease of 46.7% from net loss of RMB41.5 million in the same quarter of fiscal year 2021.

 

Adjusted net loss was RMB23.5 million (US$3.7 million), representing a decrease of 39.7% from adjusted net loss of RMB38.9 million in the same quarter of fiscal year 2021.

 

Diluted net loss per share was RMB0.33 (US$0.05), representing a decrease of 45.9% from diluted net loss per share of RMB0.61 in the same quarter of fiscal year 2021.

 

Total cash and cash equivalents and short-term investments were RMB290.9 million (US$45.9 million), compared to RMB315.7 million as of December 31, 2021.

 

Fiscal Year 2022 Financial Results

 

Total revenues were RMB1,186.4 million (US$187.2 million), representing an increase of 17.4% from RMB1,011.0 million in the fiscal year 2021. The increase was primarily due to the continued organic growth of our business, coupled with the recovery of China’s economy from Covid-19.

 

Revenues
(in million)		  

Fiscal Year Ended March 31

   %
  2022   2021   change
  RMB   RMB   YoY
Product sales   1,137.3   1,003.2   13.4%
·         Boqii Mall   433.6   385.6   12.4%
·         Third party e-commerce platforms   703.7   617.6   14.0%
Online marketing and information services and other revenue   49.1   7.8   529.8%
Total   1,186.4   1,011.0   17.4%

 

Gross profit was RMB242.7 million (US$38.3 million), representing an increase of 29.6% from RMB187.3 million in the fiscal year 2021.

 

Gross margin was 20.5%, representing an increase of 200 basis points from 18.5% in the fiscal year 2021.

 

Operating expenses were RMB381.3 million, representing a decrease of 3.3% from RMB394.4 million in the fiscal year 2021. Operating expenses as a percentage of total revenues was 32.1%, down from 39.0% in the fiscal year 2021.

 

·Fulfillment Expenses were RMB134.0 million, compared to RMB120.2 million in the fiscal year 2021. Fulfillment expenses as a percentage of total revenues were 11.3%, down from 11.9% in the fiscal year 2021. The decrease was mainly due to: (i) the improved utilization of warehouses by adjusting inventory mix; and (ii) reduced delivery cost through renegotiation of existing agreements with third-party delivery service providers.

 

 

 

·Sales and marketing expenses were RMB171.0 million, compared to RMB160.2 million in the fiscal year 2021. Sales and marketing expenses as a percentage of total revenue were 14.4%, down from 15.8% in the fiscal year 2021. The decrease was mainly due to the lower customer acquisition cost, as we employed more cost-efficient channels and generated more revenue from Boqii Mall, where the customer acquisition cost is minimal.

 

·General and administrative expenses were RMB76.2 million, representing a decrease of 33.1% from RMB114.0 million in the fiscal year 2021. General and administrative expenses as a percentage of total revenue were 6.4%, down from 11.3% in the fiscal year 2021. The decrease was primarily attributed to lower share-based compensation expense. For the fiscal year 2021 and 2022, the share-based compensation expenses were RMB 42.1 million and RMB 11.7 million respectively. Pursuant to the Amended and Restated 2018 Global Share Plan, the performance condition for options granted thereunder was satisfied upon completion of our IPO; and as a result, the company, upon the completion of the IPO, recorded RMB39.8 million of cumulative share-based compensation expenses for those options for which the vesting conditions had been satisfied as of such date.

 

Operating loss was RMB138.2 million (US$21.8 million), representing a decrease of 32.9% compared to RMB206.0 million in the fiscal year 2021.

 

EBITDA was a loss of RMB121.3 million (US$19.1 million), representing a decrease of 31.4% from loss of RMB176.9 million in the fiscal year 2021.

 

Net loss was RMB132.8 million (US$21.0 million), representing a decrease of 31.3% from net loss of RMB193.2 million in the fiscal year 2021.

 

Adjusted net loss was RMB121.2 million (US$19.1 million), representing a decrease of 18.9% from adjusted net loss of RMB149.6 million in the fiscal year 2021.

 

Diluted net loss per share was RMB1.90 (US$0.30), compared to diluted net loss per share of RMB1.29 in the fiscal year 2021.

 

Total cash and cash equivalents and short-term investments were RMB290.9 million (US$45.9 million), compared to RMB315.7 million as of December 31, 2021.

 

Conference Call

 

Boqii’s management will hold a conference call to discuss the financial results at 8:00 AM on Monday, June 6, 2022, U.S. Eastern Time (8:00 PM on Monday, June 6, 2022, Beijing/Hong Kong Time).

 

To join the conference, please dial in 15 minutes before the conference is scheduled to begin using below numbers. Please ask to be joined into the Boqii Holding Limited call

 

  Phone Number
International 1-412-317-6061
United States 1-888-317-6003
Hong Kong 852 800-963976
Mainland China 86 4001-206115
Passcode 3392253

   

A replay of the conference call may be accessed by phone at the following numbers until June 13, 2022.

 

  Phone Number
International 1-412-317-0088
United States 1-877-344-7529
Replay Access Code 3959264

 

A live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.boqii.com/.

 

 

 

About Boqii Holding Limited

 

Boqii Holding Limited (NYSE: BQ) is a leading pet-focused platform in China. We are the leading online destination for pet products and supplies in China with our broad selection of high-quality products including global leading brands, local emerging brands, and our own private label, Yoken and Mocare, offered at competitive prices. Our online sales platforms, including Boqii Mall and our flagship stores on third-party e-commerce platforms, provide customers with convenient access to a wide selection of high-quality pet products and an engaging and personalized shopping experience. Our Boqii Community provides an informative and interactive content platform for users to share their knowledge and love for pets.

 

Safe Harbor Statement

 

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission (the “SEC”), in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding such risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

 

Non-GAAP Financial Measures

 

The Company uses non-GAAP financial measures, namely adjusted net loss, adjusted net loss margin, EBITDA and EBITDA margin, in evaluating its operating results and for financial and operational decision-making purposes. The Company defines (i) adjusted net loss as net loss excluding fair value change of derivative liabilities and share-based compensation expenses, (ii) adjusted net loss margin as adjusted net loss as a percentage of total revenues, (iii) EBITDA as net loss excluding income tax expenses, interest expense, interest income, depreciation and amortization expenses, (iv) EBITDA margin as EBITDA as a percentage of total revenues. The Company believes adjusted net loss, adjusted net loss margin, EBITDA and EBITDA margin enhance investors’ overall understanding of its financial performance and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.

 

These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. As these non-GAAP financial measures have limitations as analytical tools and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, which should be considered when evaluating the Company’s performance. For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “Reconciliation of GAAP and Non-GAAP Results.” The Company encourages investors and others to review its financial information in its entirety and not rely on any single financial measure.

 

Exchange Rate

 

This press release contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.3393 to US$1.00, the noon buying rate in effect on March 31, 2022 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all.

 

 

 

For investor and media inquiries, please contact:

Boqii Holding Limited
Investor Relations
Tel: +86-21-6882-6051
Email: ir@boqii.com

 

DLK Advisory Limited

Tel: +852-2857-7101

Email: ir@dlkadvisory.com

 

   

 

 

 

  As of
 March 31,
 2021		   As of
March 31,
 2022		  

As of

March 31,
2022

  RMB   RMB   US$
           
ASSETS          
Current assets:          
Cash and cash equivalents  292,237   162,855    25,690
Short-term investments  168,546   128,084    20,205
Accounts receivable, net 45,732   49,231   7,766
Inventories, net  91,551   109,921   17,340
Prepayments and other current assets  85,261   116,738   18,415
Amounts due from related parties  11,465   11,726    1,850
Total current assets 694,792   578,555    91,266
Non-current assets:          
Property and equipment, net  8,386    7,779    1,227
Intangible assets  29,537    25,544    4,029
Operating lease right-of-use assets   29,234    38,567    6,084
Long-term investments  74,330   82,319   12,986
Goodwill  40,184    40,684      6,418  
Other non-current asset  4,111   4,861   767
Total non-current assets 185,782   199,754   31,511
Total assets 880,574   778,309   122,777
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT          
Current liabilities          
Short-term borrowings 85,566    161,126    25,417
Accounts payable  71,848   94,224   14,863
Salary and welfare payable  6,309     6,871     1,084
Accrued liabilities and other current liabilities 30,055   27,324   4,310
Amounts due to related parties, current  910   219   35
Contract liabilities   3,866   7,007    1,105
Operating lease liabilities, current  8,063    10,001    1,578
Derivative liabilities 9,996   9,086   1,433
Total current liabilities 216,613   315,858   49,825
Non-current liabilities          
Deferred tax liabilities  8,958   4,847   765
Operating lease liabilities, non-current   19,997    28,197    4,448
Long-term borrowings 68,075      -         -
Other debts, non-current   433,292   181,062   28,562
Total non-current liabilities 530,322   214,106   33,775
Total liabilities 746,935   529,964   83,600
         
Mezzanine equity          
Redeemable non-controlling interests 5,946   6,522   1,029
Total mezzanine equity 5,946   6,522   1,029
Stockholders’ equity:          
Class A ordinary shares (US$0.001 par value; 129,500,000 shares authorized, 54,505,108 and 55,709,591 shares issued and outstanding as of March 31 ,2021 and March 31, 2022, respectively) 364   372   59
Class B ordinary shares (US$0.001 par value; 15,000,000 shares authorized, 13,037,729 shares issued and outstanding as of March 31,2021 and March, 31, 2022, respectively) 82  

82

  

13

Additional paid-in capital 3,272,612   3,295,336   519,826
Statutory reserves 3,047   3,433   542
Accumulated other comprehensive loss (20,172)   (46,069)   (7,267)
Accumulated deficit (2,759,882)   (2,889,233)   (455,765)
Receivable for issuance of ordinary shares (413,377)   (164,746)   (25,988)
Total Boqii Holding Limited shareholders’ equity 82,674   199,175   31,420
Non-controlling interests 45,019   42,648   6,728
Total shareholders’ equity 127,693   241,823   38,148
Total liabilities, mezzanine equity and shareholders’ equity 880,574   778,309   122,777

   

 

 

 

  Three Months Ended March 31,   Fiscal Year Ended March 31,
  2021       2022   2022   2021   2022   2022
  RMB   RMB   US$   RMB   RMB   US$
                       
Net revenues:                      
Product sales 225,013   242,307   38,223   1,003,197   1,137,329   179,409
Online marketing and information services and other revenue 5,420   7,550   1,191   7,788   49,100   7,745
Total revenues 230,433   249,857   39,414   1,010,985   1,186,429   187,154
Total cost of revenue (185,179)   (196,132)   (30,939)   (823,686)   (943,698)   (148,865)
Gross profit 45,254   53,725   8,475   187,299   242,731   38,289
Operating expenses:                      
Fulfillment expenses (23,964)   (33,852)   (5,340)   (120,188)   (134,026)   (21,142)
Sales and marketing expenses (38,808)   (33,275)   (5,249)   (160,201)   (170,986)   (26,972)
General and administrative expenses (18,596)   (11,192)   (1,765)   (113,972)   (76,248)   (12,028)
Other income, net 21   193   30   1,067   280   44
Loss from operations (36,093)   (24,401)   (3,849)   (205,995)   (138,249)   (21,809)
Interest income 5,880    2,143   338   17,553   15,477   2,441
Interest expense (7,101)   (3,890)   (614)   (27,650)   (20,884)   (3,294)
Other (losses)/gain, net (4,996)   2,361   372   11,332   6,020   950
Fair value change of derivative liabilities 960   1,493   236   11,369   2,824   445
Loss before income tax expenses (41,350)   (22,294)   (3,517)   (193,391)   (134,812)   (21,267)
Income taxes expenses 459    165    26   871    1,571    248
Share of results of equity investees (641)   (34)   (5)   (696)    418    65
Net loss (41,532)   (22,163)   (3,496)   (193,216)   (132,823)   (20,954)
Less: Net (loss)/income attributable to the non-controlling interest shareholders (909)   261   41   1,228   (4,433)   (699)
Net loss attributable to Boqii Holding Limited (40,623)   (22,424)   (3,537)   (194,444)   (128,390)   (20,225)
Accretion on convertible redeemable preferred shares to redemption value -   -   -   120,873   -   -
Accretion on redeemable non-controlling interests to redemption value (138)   (147)   (23)   (138)   (575)   (91)
Deemed dividend to preferred shareholders -   -   -   (12,547)     -   -
Net loss attributable to Boqii Holding Limited’s ordinary shareholders (40,761)   (22,571)   (3,560)   (86,256)   (128,965)   (20,346)
                       
Net loss (41,532)   (22,163)   (3,496)   (193,216)   (132,823)   (20,954)
Other comprehensive income/(loss):                      
Foreign currency translation adjustment, net of nil tax 3,431   (3,026)   (477)   (32,148)   (16,529)   (2,606)
Unrealized securities holding (loss)/gains (423)   (9,368)   (1,478)   772   (9,368)   (1,478)
Total comprehensive loss (38,524)   (34,557)   (5,451)   (224,592)   (158,720)   (25,038)
Less: Total comprehensive (loss)/income attributable to non-controlling interest shareholders (909)   261   41   1,228   (4,433)   (699)
Total comprehensive loss attributable to Boqii Holding Limited (37,615)   (34,818)   (5,492)   (225,820)   (154,287)   (24,339)
                     
Net loss per share attributable to Boqii Holding Limited’s ordinary shareholders                      
— basic (0.61)   (0.33)   (0.05)   (1.29)   (1.90)   (0.30)
— diluted (0.61)   (0.33)   (0.05)   (1.29)   (1.90)   (0.30)
Weighted average number of ordinary shares                      
— basic 66,953,610   68,832,483   68,832,483   66,953,610   68,006,172   68,006,172
— diluted 66,953,610   68,832,483   68,832,483   66,953,610   68,006,172   68,006,172

 

 

 

 

  Three Months Ended March 31,   Fiscal Year Ended March 31,
  2021   2022   2021   2022
  RMB   RMB   RMB   RMB
               
Net loss (41,532)   (22,163)   (193,216)   (132,823)
Fair value change of derivative liabilities (960)   (1,493)   (11,369)   (2,824)
Share-based compensation

3,600

  

194

  

55,022

  

14,409

Adjusted Net Loss (38,892)   (23,462)   (149,563)   (121,238)
Adjusted Net Loss Margin (16.9%)   (9.4%)   (14.8%)   (10.2%)

  

    

  Three Months Ended March 31,   Fiscal Year Ended March 31,
  2021   2022   2021   2022
  RMB   RMB   RMB   RMB
               
Net loss (41,532)   (22,163)   (193,216)   (132,823)
Income tax expenses  (459)   (165)   (871)   (1,571)
Interest expenses 7,101   3,890   27,650   20,884
Interest income (5,880)   (2,143)   (17,553)   (15,477)
Depreciation and amortization 1,946   1,888   7,081   7,678
EBITDA (38,824)   (18,693)   (176,909)   (121,309)
EBITDA Margin (16.8%)   (7.5%)   (17.5%)   (10.2%)