EX-99.1 2 dp168526_ex9901.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Boqii Announces Fiscal 2022 Third Quarter Unaudited Financial Results

 

SHANGHAI, China, March 3, 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 third quarter of fiscal year 2022 (the quarter ended December 31, 2021).

 

Fiscal Q3 2022 Operational and Financial Highlights

 

·Total revenues were RMB 332.6 million (US$ 52.2 million), representing an increase of 6.3% from RMB312.9 million in the same quarter of fiscal year 2021.

 

·Net loss was RMB28.8 million (US$4.5 million), representing an improvement from net loss of RMB81.9 million in the same quarter of fiscal year 2021.

 

·Adjusted net loss was RMB25.4 million (US$4.0 million), representing an improvement from adjusted net loss of RMB30.5 million in the same quarter of fiscal year 2021.

 

·EBITDA1 was a loss of RMB25.6 million (US$4.0 million), representing an improvement from a loss of RMB79.2 million in the same quarter of fiscal year 2021.

 

·Total GMV2 was RMB816.5 million (US$128.1 million), representing an increase of 6.9% from RMB763.8 million in the same quarter of fiscal year 2021.

 

·Active buyers were 1.9 million, representing an increase of 26.3% from 1.5 million in the same quarter of fiscal year 2021.

 

CEO & CFO Quote

 

Mr. Hao Liang, Boqii’s Founder, Chairman and Chief Executive Officer commented, “We maintained continuous topline growth in the third fiscal quarter of 2022 amidst challenging market conditions. On top of that, we are pleased to report fast-improving profit margins, highlighting the progress we made in achieving profitability. We also announced a strategic partnership with Evetsoft Pet Hospital Software and furthered our pet care supply chain readiness, to provide pets with better care at more accessible price points.”

 

Ms. Yingzhi (Lisa) Tang, Boqii’s Co-Founder, Co-CEO and CFO commented: “Continuous growth momentum from online marketing, information services, and other revenue once again exhibited the strength of our vertical platform and unique value propositions to other players in the industry chain. Our improved gross margin also demonstrated our ability to achieve profitability. We are committed to bringing the best-in-class products and services closer to our ever-increasing customer base and industry partners, to capture the enormous opportunities in the pet industry.”

 

 

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”.

 

2 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.

 

 

 

Fiscal Q3 2022 Financial Results

 

Total revenues were RMB332.6 million (US$52.2 million), representing an increase of 6.3% from RMB312.9 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

December 31

    % 
    2021    2020    change 
    RMB    RMB    YoY 
Product sales   317.4    312.3    1.6%
·        Boqii Mall   121.3    114.1    6.3%
·        Third party e-commerce platforms   196.1    198.2    (1.1%)
Online marketing and information services and other revenue   15.2    0.6    2433.3%
Total   322.6    312.9    6.3%

 

 

Gross profit was RMB76.9 million (US$12.1 million), representing an increase of 37% from RMB56.1 million in the same quarter of fiscal year 2021.

 

Gross margin was 23.1%, representing an increase from 17.9% in the same quarter of fiscal year 2021.

 

Operating expenses were RMB108.2 million, representing a decrease of 28.1% from RMB150.5 million in the same quarter of fiscal year 2021. Operating expenses as a percentage of total revenues was 32.5%, representing a decrease from 48.1% in the same quarter of fiscal year 2021. The decrease was primarily due to share-based compensation expenses incurred in fiscal year 2021. 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 RMB44.1 million of cumulative share-based compensation expenses for those options for which the vesting conditions had been satisfied as of such date.

 

·Fulfillment Expenses were RMB37.7 million, representing an increase of 12.2% from RMB33.6 million in the same quarter of fiscal year 2021. Fulfillment expenses as a percentage of total revenues was 11.3%, compared to 10.7% in the same quarter of fiscal year 2021. The increase was primarily due to the increased handling expenses and packaging cost.

 

·Sales and marketing expenses were RMB48.3 million, representing a decrease of 12.4% from RMB55.1 million in the same quarter of fiscal year 2021. Sales and marketing expenses as a percentage of total revenue was 14.5%, representing a decrease from 17.6% in the same quarter of fiscal year 2021. The decrease was primarily due to the decrease of share-based compensation expense of RMB11.4 million compared with the same quarter of fiscal year 2021.

 

·General and administrative expenses were RMB22.3 million, representing a decrease of 64% from RMB61.8 million in the same quarter of fiscal year 2021. General and administrative expenses as a percentage of total revenue was 6.7%, representing a decrease from 19.8% in the same quarter of fiscal year 2021. The decrease was primarily due to: (i) the decrease of share-based compensation expense of RMB35.7 million compared with the same quarter of fiscal year 2021; (ii) the decrease of professional fees of RMB3.9 million incurred in connection with our IPO in the same quarter of fiscal year 2021.

 

 

 

Operating loss was RMB31.3 million (US$4.9 million), representing an improvement from a loss of RMB93.6 million in the same quarter of fiscal year 2021.

 

EBITDA was a loss of RMB25.6 million (US$4.0 million), representing an improvement from a loss of RMB79.2 million in the same quarter of fiscal year 2021.

 

Net loss was RMB28.8 million (US$4.5 million), representing an improvement from to net loss of RMB81.9 million in the same quarter of fiscal year 2021.

 

Adjusted net loss was RMB25.4 million (US$4.0 million), representing an improvement from adjusted net loss of RMB30.5 million in the same quarter of fiscal year 2021.

 

Diluted net loss per share was RMB0.41 (US$0.06), representing an improvement from diluted net loss per share of RMB1.61 in the same quarter of fiscal year 2021.

 

Total cash and cash equivalents and short-term investments were RMB315.7 million (US$49.5 million), compared to RMB339.4 million as of September 30, 2021.

 

Conference Call

 

Boqii’s management will hold a conference call to discuss the financial results at 8:00 AM on Wednesday, March 3, 2022, U.S. Eastern Time (9:00 PM on Wednesday, March 3, 2022, Beijing/Hong Kong Time).

 

To join the conference, please dial in 15 minutes before the conference is scheduled to begin using below numbers.

 

  Phone Number
International 1-412-317-6061
United States 1-888-317-6003
Hong Kong 852 800-963976
Mainland China 86 4001-206115
Passcode 9147363

 

A replay of the conference call may be accessed by phone at the following numbers until March 10, 2022.

 

  Phone Number
International 1-412-317-0088
United States 1-877-344-7529
Replay Access Code 8462589

 

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, 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 RMB 6.3726 to US$1.00, the noon buying rate in effect on December 31, 2021 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:

 

In China:

 

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

 

 

 

BOQII HOLDING LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 

   As of
 March 31,
 2021		  As of
December 31,
 2021		 

As of

December 31,
2021

    RMB    RMB    US$ 
                
ASSETS               
Current assets:               
Cash and cash equivalents   292,237    176,026    27,622 
Short-term investments   168,546    139,648    21,914 
Accounts receivable, net   45,732    53,991    8,472 
Inventories, net   91,551    123,316    19,351 
Prepayments and other current assets   85,261    106,650    16,736 
Amounts due from related parties   11,465    23,430    3,677 
Total current assets   694,792    623,061    97,772 
Non-current assets:               
Property and equipment, net   8,386    7,403    1,162 
Intangible assets   29,537    26,544    4,165 
Operating lease right-of-use assets   29,234    42,065    6,601 
Long-term investments   74,330    94,887    14,890 
Goodwill   40,184    40,684    6,384 
Other non-current asset   4,111    4,140    650 
Total non-current assets   185,782    215,723    33,852 
Total assets   880,574    838,784    131,624 
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ DEFICIT               
Current liabilities               
Short-term borrowings   85,566    152,426    23,919 
Accounts payable   71,848    100,235    15,729 
Salary and welfare payable   6,309    8,619    1,353 
Accrued liabilities and other current liabilities   30,055    35,474    5,567 
Amounts due to related parties, current   910    9,981    1,566 
Contract liabilities   3,866    10,534    1,653 
Operating lease liabilities, current   8,063    10,197    1,600 
Derivative liabilities   9,996    9,635    1,512 
Total current liabilities   216,613    337,101    52,899 
Non-current liabilities               
Deferred tax liabilities   8,958    8,216    1,289 
Operating lease liabilities, non-current   19,997    30,565    4,796 
Long-term borrowings   68,075    -    - 
Other debts, non-current   433,292    251,141    39,410 
Total non-current liabilities   530,322    289,922    45,495 
Total liabilities   746,935    627,023    98,394 
                
Mezzanine equity               
Redeemable non-controlling interests   5,946    6,374    1,000 
Total mezzanine equity   5,946    6,374    1,000 
Stockholders’ equity:               
Class A ordinary shares (US$0.001 par value; 129,500,000 shares authorized, 54,505,108 and 55,703,708 shares issued and outstanding as of March 31 and December 31, 2021, respectively)   364    372    58 
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 and December, 31, 2021, respectively)   82    82    13 
Additional paid-in capital   3,272,612    3,295,010    517,059 
Statutory reserves   3,047    3,203    503 
Accumulated other comprehensive loss   (20,172)   (33,675)   (5,284)
Accumulated deficit   (2,759,882)   (2,866,435)   (449,807)
Receivable for issuance of ordinary shares   (413,377)   (235,556)   (36,964)
Total Boqii Holding Limited shareholders’ equity   82,674    163,001    25,578 
Non-controlling interests   45,019    42,386    6,652 
Total shareholders’ equity   127,693    205,387    32,230 
Total liabilities, mezzanine equity and shareholders' equity   880,574    838,784    131,624 

 

 

Notes for all the condensed consolidated financial schedules presented:

Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB6.3726 on December 31, 2021 published by the Federal Reserve Board.

 

 

BOQII HOLDING LIMITED

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 

    
    
   Three Months Ended December 31,  Nine Months Ended December 31,
   2020  2021  2021  2020  2021  2021
   RMB  RMB  US$  RMB  RMB  US$
                   
Net revenues:                              
Product sales   312,371    317,439    49,813    778,186    895,022    140,449 
Online marketing and information services   555    15,166    2,380    2,368    41,550    6,520 
Total revenues   312,926    332,605    52,193    780,554    936,572    146,969 
Total cost of revenue   (256,784)   (255,686)   (40,123)   (638,507)   (747,566)   (117,309)
Gross profit   56,142    76,919    12,070    142,047    189,006    29,659 
Operating expenses:                              
Fulfillment expenses   (33,557)   (37,655)   (5,909)   (96,225)   (100,174)   (15,719)
Sales and marketing expenses   (55,107)   (48,257)   (7,573)   (121,393)   (137,711)   (21,610)
General and administrative expenses   (61,811)   (22,282)   (3,497)   (95,376)   (65,056)   (10,209)
Other income, net   740    20    3    1,045    87    14 
Loss from operations   (93,593)   (31,255)   (4,906)   (169,902)   (113,848)   (17,865)
Interest income   5,471    3,470    545    11,674    13,334    2,092 
Interest expense   (6,990)   (4,935)   (774)   (20,549)   (16,994)   (2,667)
Other (losses)/gain, net   12,552    3,254    511    16,328    3,659    574 
Fair value change of derivative liabilities   -    920    144    10,409    1,331    209 
Loss before income tax expenses   (82,560)   (28,546)   (4,480)   (152,040)   (112,518)   (17,657)
Income taxes expenses   603    159    25    412    1,406    221 
Share of results of equity investees   22    (382)   (60)   (55)   452    71 
Net loss   (81,935)   (28,769)   (4,515)   (151,683)   (110,660)   (17,365)
Less: Net income/(loss) attributable to the non-controlling interest shareholders   1,242    (1,011)   (159)   2,138    (4,694)   (737)
Net loss attributable to Boqii Holding Limited   (83,177)   (27,758)   (4,356)   (153,821)   (105,966)   (16,628)
Less: Accretion on convertible redeemable preferred shares to redemption value   195,935    -    -    120,873    -    - 
Less: Accretion on redeemable non-controlling interests to redemption value   -    (145)   (23)   -    (428)   (67)
Less: Deemed dividend to preferred shareholders   -    -    -    (12,547)   -    - 
Net income/(loss) attributable to Boqii Holding Limited’s ordinary shareholders   112,758    (27,903)   (4,379)   (45,495)   (106,394)   (16,696)
                               
Net loss   (81,935)   (28,769)   (4,515)   (151,683)   (110,660)   (17,365)
Other comprehensive loss:                              
Foreign currency translation adjustment, net of nil tax   (24,062)   (7,738)   (1,214)   (35,579)   (13,503)   (2,119)
Unrealized securities holding gains   -    -    -    1,195    -    - 
Total comprehensive loss   (105,997)   (36,507)   (5,729)   (186,067)   (124,163)   (19,484)
Less: Total comprehensive income/(loss) attributable to non-controlling interest shareholders   1,242    (1,011)   (159)   2,138    (4,694)   (737)
Total comprehensive loss attributable to Boqii Holding Limited   (107,239)   (35,496)   (5,570)   (188,205)   (119,469)   (18,747)
                               
Net earnings/(loss) per share attributable to Boqii Holding Limited’s ordinary shareholders                              
— basic   1.68    (0.41)   (0.06)   (0.68)   (1.57)   (0.25)
— diluted   1.61    (0.41)   (0.06)   (0.68)   (1.57)   (0.25)
Weighted average number of ordinary shares                              
— basic   67,156,580    67,861,419    67,861,419    67,156,580    67,735,744    67,735,744 
— diluted   70,041,375    67,861,419    67,861,419    67,156,580    67,735,744    67,735,744 
                               

 

 

Notes for all the condensed consolidated financial schedules presented:

Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB6.3726 on December 31, 2021 published by the Federal Reserve Board.

 

 

Boqii Holding Limited

Reconciliation of GAAP and Non-GAAP Results

(In thousands)

 

   Three Months Ended December 31,  Nine Months Ended December 31,
   2020  2021  2020  2021
   RMB  RMB  RMB  RMB
             
Net loss   (81,935)   (28,769)   (151,683)   (110,660)
Fair value change of derivative liabilities   -    (920)   (10,409)   (1,331)
Share-based compensation   51,422    4,312    51,422    14,215 
Adjusted Net Loss   (30,513)   (25,377)   (110,670)   (97,776)
Adjusted Net Loss Margin   (9.8%)   (7.6%)   (14.2%)   (10.4%)

 

 

   Three Months Ended December 31,  Nine Months Ended December 31,
   2020  2021  2020  2021
   RMB  RMB  RMB  RMB
             
Net loss   (81,935)   (28,769)   (151,683)   (110,660)
Income tax expenses   (603)   (159)   (412)   (1,406)
Interest expenses   6,990    4,935    20,549    16,994 
Interest income   (5,471)   (3,470)   (11,674)   (13,334)
Depreciation and amortization   1,784    1,905    5,135    5,790 
EBITDA   (79,235)   (25,558)   (138,085)   (102,616)
EBITDA Margin   (25.3%)   (7.7%)   (17.7%)   (11.0%)[-]

 

 

Notes for all the condensed consolidated financial schedules presented:

Note 1: The conversion of Renminbi (RMB) into U.S. dollars (USD) is based on the certified exchange rate of USD1.00=RMB6.3726 on December 31, 2021 published by the Federal Reserve Board.