Secoo Reports Unaudited Third Quarter 2019 Results
BEIJING, Dec. 05, 2019 (GLOBE NEWSWIRE) — Secoo Holding Limited (“Secoo”, the “Company” or “We”) (NASDAQ: SECO), Asia’s largest online integrated upscale products and services platform, today announced its unaudited financial results for the third quarter ended September 30, 2019.Highlights for Third Quarter 2019:GMV1 reached RMB3,661.0 million (US$512.2 million) for Q3 2019, representing an increase of 66.8% from RMB2,194.6 million for Q3 2018.Total number of orders2 was 1,035.3 thousand for Q3 2019, representing an increase of 74.2% from 594.4 thousand for Q3 2018.Number of active customers3 increased by 58.7% to 482.5 thousand for Q3 2019 from 304.0 thousand for Q3 2018.Total revenues reached RMB1,941.6 million (US$271.6 million) for Q3 2019, increasing by 23.5% from RMB1,572.4 million for Q3 2018.Net income increased by 38.3% to RMB62.1 million (US$8.7 million) for Q3 2019 from RMB44.9 million for Q3 2018.Non-GAAP net income4 increased by 32.0% to RMB64.7 million (US$9.1 million) for Q3 2019 from RMB49.0 million for Q3 2018._______________________1GMV, or Gross Market Value, refers to the total value of all orders of products and services, excluding the value of whole car sales, placed on our online platform and in our offline experience centers, regardless of whether the products are delivered or returned or whether the services are cancelled during the period presented.
2Total number of orders refers to the total number of orders of products and services, excluding the number of whole car sales, placed on our online platform and in our offline experience centers, regardless of whether the products are delivered or returned or whether the services are cancelled during the period presented.
3 Active customer refers to a customer who made at least one account purchase during the period presented.
4 Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.CommentaryMr. Richard Rixue Li, Chairman and Chief Executive Officer of Secoo, commented, “We’re pleased to deliver another quarter of solid operational and financial results, highlighted by 66.8% year-over-year increase in GMV to a record high of RMB3.66 billion, thanks to strong execution of our overall strategy, focused on providing the best possible luxury shopping experience to our customers. As we build upon our growing brand recognition and leading luxury retail capabilities through our integrated online and offline platform, we will continue achieving sustained growth in both the number of active customers and paid memberships. In the third quarter, our number of active customers increased by 58.7% year-over-year, and incremental paid memberships increased by 64.6% compared to the incremental paid membership in the second quarter of 2019.”“As we commit our efforts to expanding and deepening our supply chain capabilities, we have added direct cooperation with 143 domestic and international brands since the third quarter to date. The expanded offerings appeal to the interests of high-end consumers with discerning tastes seeking premium shopping experiences. In addition, we continue advancing our technology including artificial intelligence, big data and cloud computing, especially with the deployment of our AI-powered operating system, which improve operating efficiency and provide superior customer experience. Our healthy growth momentum reaffirms the enormous and growing demand for online luxury shopping in China and our market-leading position,” Mr. Li concluded.Mr. Shaojun Chen, Chief Financial Officer of Secoo, added, “During the third quarter, we reported record high revenue of RMB1,941.6 million, which is in line with our expectation. The solid third quarter results, coupled with our ability to increase operating leverage, brought about healthy profitability during the quarter with income from operations and net income increasing by 35.0% and 38.3%, respectively, on a year-over-year basis. Our focus going forward is to continue to balance profitability by increasing operating efficiency, while at the same time expanding our suite of boutique offerings. Moreover, we will strengthen our influence across the value chain in the online luxury retail industry to further solidify our position as a leading player in the market, both in China and internationally.”Recent DevelopmentsFrom the third quarter of 2019 to date, Secoo has established new direct collaborations with 143 brands, including Valentino, Thom Browne and Gènavant. Notably, Secoo partnered with Prada to release Prada Spring/Summer 2020 limited edition exclusively available on Secoo. Moreover, Secoo collaborated with Stella McCartney, a leading British designer brand, to exclusively unveil limited edition shoes – Elyse series.
In the third quarter, Secoo established a new collaboration with Stadium Goods, a prestigious premium sneaker and streetwear marketplace in the U.S., providing customers opportunities to spot trends and purchase hard-to-procure product releases.
Secoo launched the eleventh “707” anniversary promotion festival in July and Secoo “Outlets” offerings promotion festival in September, further enhancing Secoo brand awareness and improving the boutique shopping experiences on Secoo’s integrated platform.
In November, Secoo attended 2019 China International Import Expo (“CIIE 2019”). During the CIIE 2019, Secoo and Deloitte jointly released the Secoo – Deloitte CIIE 2019 Blue Paper, which analyzes the luxury purchasing power of consumers from lower-tier cities, providing consumer demographic characteristics and luxury shopping behaviors. This Blue Paper can be utilized as an important reference for high-end brands to design and execute their marketing activities suitable for their target markets.
Recently, Secoo began partnering with Vestiaire Collective, Europe’s largest pre-owned luxury fashion website, to connect China’s savvy shoppers with world-class pre-owned fashion trends.
In the third quarter, Secoo successfully launched its live streaming shopping channel, devoted to online luxury fashion brand shopping through the convenient airing of live streaming shows featuring a wide range of top-tier boutique shops across the globe, including Europe and Hong Kong of China. As consumers experienced live streaming shopping, turning into consistent viewers of shopping for the latest fashions, the Company aired more than 1,000 live streaming events.
In the third quarter, Secoo strengthened its AI-powered operating system, along with an intelligent customer service system. Building on proprietary data-as-a-service system, Secoo is able to provide data analytics on merchandise price, sales and user behavior, enabling smarter matches between merchandises and customers and leading more accurate recommendations through the AI-powered system.
In this quarter, the advertiser base on Secoo EEC remained robust across diverse sectors with a total of 20 brands, including 15 new brands, such as PT Platinum, Montblanc, Qatar Airline, Metro Group, Maserati, Ping An Insurance, and iRobot.Third Quarter 2019 Financial ResultsGMV increased by 66.8% to RMB3,661.0 million (US$512.2 million) for the third quarter of 2019, from RMB2,194.6 million for the third quarter of 2018.Total number of orders increased by 74.2% to 1,035.3 thousand for the third quarter of 2019 from 594.4 thousand for the third quarter of 2018.Total revenues for the third quarter of 2019 increased by 23.5% to RMB1,941.6 million (US$271.6 million) from RMB1,572.4 million in the third quarter of 2018, primarily attributable to the continuous expansion of our operation, our lush offerings of merchandise and SKUs combined with our creative and effective marketing activities driving the growth in our total active customers and total number of orders served during the period.Cost of revenues increased by 23.8% to RMB1,612.3 million (US$225.6 million) for the third quarter of 2019 from RMB1,302.7 million for the third quarter of 2018, which was in line with the increase of total revenues.Gross profit increased by 22.1% to RMB329.3 million (US$46.1 million) for the third quarter of 2019 from RMB269.7 million for the third quarter of 2018.Operating expenses increased by 17.6% to RMB234.5 million (US$32.8 million) for the third quarter of 2019 from RMB199.4 million for the third quarter of 2018.Fulfillment expenses increased by 18.4% to RMB49.6 million (US$6.9 million) for the third quarter of 2019 from RMB41.9 million for the third quarter of 2018. The increase was primarily attributable to the growth in sales volume, including third-party payment commissions, as well as the increased staff cost during the period.Marketing expenses increased by 0.3% to RMB110.8 million (US$15.5 million) for the third quarter of 2019 from RMB110.5 million for the third quarter of 2018. The marketing expenses remained flat year over year, which was primarily due to improved marketing efficiency and our efforts to enhance customer retention and repeated purchase.Technology and content development expenses increased by 23.6% to RMB26.2 million (US$3.7 million) for the third quarter of 2019 from RMB21.2 million for the third quarter of 2018. The increase was primarily due to the continuous investment in the technology department in order to strengthen our technological capabilities.General and administrative expenses increased by 84.6% to RMB47.8 million (US$6.7 million) for the third quarter of 2019 from RMB25.9 million for the third quarter of 2018. The increase was primarily attributable to the rising staff cost, professional fee, rents and office expenses associated with relocation of office during the period.Income from operations increased by 35.0% to RMB94.9 million (US$13.3 million) for the third quarter of 2019 from RMB70.3 million for the third quarter of 2018.Non-GAAP income from operations, which excludes share-based compensation expenses, increased by 31.2% to RMB97.5 million (US$13.6 million) for the third quarter of 2019 from RMB74.3 million for the third quarter of 2018.Income tax expenses were RMB17.0 million (US$2.4 million) in the third quarter of 2019, compared to RMB9.2 million for the third quarter of 2018.Net income increased by 38.3% to RMB62.1 million (US$8.7 million) for the third quarter of 2019 from RMB44.9 million for the third quarter of 2018.Non-GAAP net income, which excludes share-based compensation expenses, was RMB64.7 million (US$9.1 million) in the third quarter of 2019, representing an increase of 32.0% from RMB49.0 million in the third quarter of 2018.Net income attributable to ordinary shareholders of Secoo Holding Limited for the third quarter of 2019 was RMB60.9 million (US$8.5 million), representing an increase of 38.7% from RMB43.9 million for the third quarter of 2018.Basic and diluted net income per share were RMB2.43 (US$0.34) and RMB2.33 (US$0.33), respectively, for the third quarter of 2019, compared to basic and diluted net income per share of RMB1.74 and RMB1.67, respectively, for the third quarter of 2018. Basic and diluted net income per American Depositary Share (“ADS”) were RMB1.21 (US$0.17) and RMB1.17 (US$0.16), respectively, for the third quarter of 2019, compared to basic and diluted net income per ADS of RMB0.87 and RMB0.84, respectively, for the third quarter of 2018.Non-GAAP basic and diluted net income per share were RMB2.53 (US$0.35) and RMB2.43 (US$0.34), respectively, for the third quarter of 2019, compared to RMB1.90 and RMB1.83, respectively, for the third quarter of 2018. Non-GAAP basic and diluted net income per ADS were RMB1.26 (US$0.18) and RMB1.22 (US$0.17), respectively, for the third quarter of 2019, compared to RMB0.95 and RMB0.91 respectively, for the third quarter of 2018.Cash and Restricted Cash
As of September 30, 2019, the Company had cash and restricted cash of RMB758.7 million (US$106.1 million).Fourth Quarter 2019 GuidanceThe Company currently expects total revenues for the fourth quarter of 2019 to be in the range of RMB2.2 billion and RMB2.3 billion, which would represent an increase of approximately 22.7% to 28.3% on a year-over-year basis.The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. The Company’s ability to achieve these projections is subject to risks and uncertainties. See “Safe Harbor Statement” at the end of this press release.Conference Call Information
The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on December 5, 2019 (9:00 PM Beijing/Hong Kong Time on December 5, 2019).The dial-in details for the live conference call are as follows:Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.secoo.com.A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until December 12, 2019, by dialing the following telephone numbers: About Secoo Holding LimitedSecoo Holding Limited (“Secoo”) is Asia’s largest online integrated upscale products and services platform as measured by GMV in 2016. Secoo provides customers a wide selection of authentic upscale products and lifestyle services on the Company’s integrated online and offline shopping platform which consists of the Secoo.com website, mobile applications and offline experience centers, offering over 400,000 SKUs, covering over 3,800 global and domestic brands. Supported by the Company’s proprietary database of upscale products, authentication procedures and brand cooperation, Secoo is able to ensure the authenticity and quality of every product offered on its platform.For more information, please visit http://ir.secoo.com.Use of Non-GAAP Financial MeasuresTo supplement our consolidated financial statements which are presented in accordance with U.S. GAAP, we also use non-GAAP income from operations, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders of Secoo Holding Limited, and non-GAAP basic and dilutive net income per share and ADS as additional non-GAAP financial measures. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net income per share as non-GAAP net income attributable to ordinary shareholders of Secoo Holding Limited dividing by weighted average number of basic and diluted share outstanding, including the dilutive effect of share-based awards as determined under the treasury stock method. We define non-GAAP basic and diluted net income per ADS as non-GAAP basic and diluted net income per share divided by two as two ADSs represent one ordinary share. We also believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our consolidated results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our peer companies.The use of non-GAAP financial measures has certain limitations. These non-GAAP measures exclude certain items that have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, and should not be considered a substitute for or superior to U.S. GAAP results. In addition, these non-GAAP financial measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as Secoo does.Reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure is set forth at the end of this release.Exchange Rate Information
This press release contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB7.1477 to US$1.0, the noon buying rate in New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York in effect as of September 30, 2019.Safe Harbor StatementThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to Secoo management quotes and the Company’s financial outlook. These forward-looking statements can be identified by terminology such as “will,” “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “intend,” “potential,” “plan,” “goal” and similar statements. Secoo Holding Limited may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements include, but are not limited to, statements about: the Company’s goals and strategies; its future business development, financial condition and results of operations; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to the Company’s industry and general economic conditions in China. For additional information on these and other important factors that could adversely affect the Company’s business, financial condition, results of operations and prospects, please see its filings with the U.S. Securities and Exchange Commission.For investor and media inquiries, please contact:In China:
Secoo Holding Limited
Jingbo Ma
Tel: +86 (10) 6588-0135
E-mail: ir@secoo.comThe Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: Secoo@tpg-ir.comIn the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: Secoo@tpg-ir.com
2Total number of orders refers to the total number of orders of products and services, excluding the number of whole car sales, placed on our online platform and in our offline experience centers, regardless of whether the products are delivered or returned or whether the services are cancelled during the period presented.
3 Active customer refers to a customer who made at least one account purchase during the period presented.
4 Non-GAAP net income is a non-GAAP financial measure, which is defined as net income excluding share-based compensation expenses. See “Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.CommentaryMr. Richard Rixue Li, Chairman and Chief Executive Officer of Secoo, commented, “We’re pleased to deliver another quarter of solid operational and financial results, highlighted by 66.8% year-over-year increase in GMV to a record high of RMB3.66 billion, thanks to strong execution of our overall strategy, focused on providing the best possible luxury shopping experience to our customers. As we build upon our growing brand recognition and leading luxury retail capabilities through our integrated online and offline platform, we will continue achieving sustained growth in both the number of active customers and paid memberships. In the third quarter, our number of active customers increased by 58.7% year-over-year, and incremental paid memberships increased by 64.6% compared to the incremental paid membership in the second quarter of 2019.”“As we commit our efforts to expanding and deepening our supply chain capabilities, we have added direct cooperation with 143 domestic and international brands since the third quarter to date. The expanded offerings appeal to the interests of high-end consumers with discerning tastes seeking premium shopping experiences. In addition, we continue advancing our technology including artificial intelligence, big data and cloud computing, especially with the deployment of our AI-powered operating system, which improve operating efficiency and provide superior customer experience. Our healthy growth momentum reaffirms the enormous and growing demand for online luxury shopping in China and our market-leading position,” Mr. Li concluded.Mr. Shaojun Chen, Chief Financial Officer of Secoo, added, “During the third quarter, we reported record high revenue of RMB1,941.6 million, which is in line with our expectation. The solid third quarter results, coupled with our ability to increase operating leverage, brought about healthy profitability during the quarter with income from operations and net income increasing by 35.0% and 38.3%, respectively, on a year-over-year basis. Our focus going forward is to continue to balance profitability by increasing operating efficiency, while at the same time expanding our suite of boutique offerings. Moreover, we will strengthen our influence across the value chain in the online luxury retail industry to further solidify our position as a leading player in the market, both in China and internationally.”Recent DevelopmentsFrom the third quarter of 2019 to date, Secoo has established new direct collaborations with 143 brands, including Valentino, Thom Browne and Gènavant. Notably, Secoo partnered with Prada to release Prada Spring/Summer 2020 limited edition exclusively available on Secoo. Moreover, Secoo collaborated with Stella McCartney, a leading British designer brand, to exclusively unveil limited edition shoes – Elyse series.
In the third quarter, Secoo established a new collaboration with Stadium Goods, a prestigious premium sneaker and streetwear marketplace in the U.S., providing customers opportunities to spot trends and purchase hard-to-procure product releases.
Secoo launched the eleventh “707” anniversary promotion festival in July and Secoo “Outlets” offerings promotion festival in September, further enhancing Secoo brand awareness and improving the boutique shopping experiences on Secoo’s integrated platform.
In November, Secoo attended 2019 China International Import Expo (“CIIE 2019”). During the CIIE 2019, Secoo and Deloitte jointly released the Secoo – Deloitte CIIE 2019 Blue Paper, which analyzes the luxury purchasing power of consumers from lower-tier cities, providing consumer demographic characteristics and luxury shopping behaviors. This Blue Paper can be utilized as an important reference for high-end brands to design and execute their marketing activities suitable for their target markets.
Recently, Secoo began partnering with Vestiaire Collective, Europe’s largest pre-owned luxury fashion website, to connect China’s savvy shoppers with world-class pre-owned fashion trends.
In the third quarter, Secoo successfully launched its live streaming shopping channel, devoted to online luxury fashion brand shopping through the convenient airing of live streaming shows featuring a wide range of top-tier boutique shops across the globe, including Europe and Hong Kong of China. As consumers experienced live streaming shopping, turning into consistent viewers of shopping for the latest fashions, the Company aired more than 1,000 live streaming events.
In the third quarter, Secoo strengthened its AI-powered operating system, along with an intelligent customer service system. Building on proprietary data-as-a-service system, Secoo is able to provide data analytics on merchandise price, sales and user behavior, enabling smarter matches between merchandises and customers and leading more accurate recommendations through the AI-powered system.
In this quarter, the advertiser base on Secoo EEC remained robust across diverse sectors with a total of 20 brands, including 15 new brands, such as PT Platinum, Montblanc, Qatar Airline, Metro Group, Maserati, Ping An Insurance, and iRobot.Third Quarter 2019 Financial ResultsGMV increased by 66.8% to RMB3,661.0 million (US$512.2 million) for the third quarter of 2019, from RMB2,194.6 million for the third quarter of 2018.Total number of orders increased by 74.2% to 1,035.3 thousand for the third quarter of 2019 from 594.4 thousand for the third quarter of 2018.Total revenues for the third quarter of 2019 increased by 23.5% to RMB1,941.6 million (US$271.6 million) from RMB1,572.4 million in the third quarter of 2018, primarily attributable to the continuous expansion of our operation, our lush offerings of merchandise and SKUs combined with our creative and effective marketing activities driving the growth in our total active customers and total number of orders served during the period.Cost of revenues increased by 23.8% to RMB1,612.3 million (US$225.6 million) for the third quarter of 2019 from RMB1,302.7 million for the third quarter of 2018, which was in line with the increase of total revenues.Gross profit increased by 22.1% to RMB329.3 million (US$46.1 million) for the third quarter of 2019 from RMB269.7 million for the third quarter of 2018.Operating expenses increased by 17.6% to RMB234.5 million (US$32.8 million) for the third quarter of 2019 from RMB199.4 million for the third quarter of 2018.Fulfillment expenses increased by 18.4% to RMB49.6 million (US$6.9 million) for the third quarter of 2019 from RMB41.9 million for the third quarter of 2018. The increase was primarily attributable to the growth in sales volume, including third-party payment commissions, as well as the increased staff cost during the period.Marketing expenses increased by 0.3% to RMB110.8 million (US$15.5 million) for the third quarter of 2019 from RMB110.5 million for the third quarter of 2018. The marketing expenses remained flat year over year, which was primarily due to improved marketing efficiency and our efforts to enhance customer retention and repeated purchase.Technology and content development expenses increased by 23.6% to RMB26.2 million (US$3.7 million) for the third quarter of 2019 from RMB21.2 million for the third quarter of 2018. The increase was primarily due to the continuous investment in the technology department in order to strengthen our technological capabilities.General and administrative expenses increased by 84.6% to RMB47.8 million (US$6.7 million) for the third quarter of 2019 from RMB25.9 million for the third quarter of 2018. The increase was primarily attributable to the rising staff cost, professional fee, rents and office expenses associated with relocation of office during the period.Income from operations increased by 35.0% to RMB94.9 million (US$13.3 million) for the third quarter of 2019 from RMB70.3 million for the third quarter of 2018.Non-GAAP income from operations, which excludes share-based compensation expenses, increased by 31.2% to RMB97.5 million (US$13.6 million) for the third quarter of 2019 from RMB74.3 million for the third quarter of 2018.Income tax expenses were RMB17.0 million (US$2.4 million) in the third quarter of 2019, compared to RMB9.2 million for the third quarter of 2018.Net income increased by 38.3% to RMB62.1 million (US$8.7 million) for the third quarter of 2019 from RMB44.9 million for the third quarter of 2018.Non-GAAP net income, which excludes share-based compensation expenses, was RMB64.7 million (US$9.1 million) in the third quarter of 2019, representing an increase of 32.0% from RMB49.0 million in the third quarter of 2018.Net income attributable to ordinary shareholders of Secoo Holding Limited for the third quarter of 2019 was RMB60.9 million (US$8.5 million), representing an increase of 38.7% from RMB43.9 million for the third quarter of 2018.Basic and diluted net income per share were RMB2.43 (US$0.34) and RMB2.33 (US$0.33), respectively, for the third quarter of 2019, compared to basic and diluted net income per share of RMB1.74 and RMB1.67, respectively, for the third quarter of 2018. Basic and diluted net income per American Depositary Share (“ADS”) were RMB1.21 (US$0.17) and RMB1.17 (US$0.16), respectively, for the third quarter of 2019, compared to basic and diluted net income per ADS of RMB0.87 and RMB0.84, respectively, for the third quarter of 2018.Non-GAAP basic and diluted net income per share were RMB2.53 (US$0.35) and RMB2.43 (US$0.34), respectively, for the third quarter of 2019, compared to RMB1.90 and RMB1.83, respectively, for the third quarter of 2018. Non-GAAP basic and diluted net income per ADS were RMB1.26 (US$0.18) and RMB1.22 (US$0.17), respectively, for the third quarter of 2019, compared to RMB0.95 and RMB0.91 respectively, for the third quarter of 2018.Cash and Restricted Cash
As of September 30, 2019, the Company had cash and restricted cash of RMB758.7 million (US$106.1 million).Fourth Quarter 2019 GuidanceThe Company currently expects total revenues for the fourth quarter of 2019 to be in the range of RMB2.2 billion and RMB2.3 billion, which would represent an increase of approximately 22.7% to 28.3% on a year-over-year basis.The above outlook is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. The Company’s ability to achieve these projections is subject to risks and uncertainties. See “Safe Harbor Statement” at the end of this press release.Conference Call Information
The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on December 5, 2019 (9:00 PM Beijing/Hong Kong Time on December 5, 2019).The dial-in details for the live conference call are as follows:Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.secoo.com.A replay of the conference call will be accessible approximately two hours after the conclusion of the live call until December 12, 2019, by dialing the following telephone numbers: About Secoo Holding LimitedSecoo Holding Limited (“Secoo”) is Asia’s largest online integrated upscale products and services platform as measured by GMV in 2016. Secoo provides customers a wide selection of authentic upscale products and lifestyle services on the Company’s integrated online and offline shopping platform which consists of the Secoo.com website, mobile applications and offline experience centers, offering over 400,000 SKUs, covering over 3,800 global and domestic brands. Supported by the Company’s proprietary database of upscale products, authentication procedures and brand cooperation, Secoo is able to ensure the authenticity and quality of every product offered on its platform.For more information, please visit http://ir.secoo.com.Use of Non-GAAP Financial MeasuresTo supplement our consolidated financial statements which are presented in accordance with U.S. GAAP, we also use non-GAAP income from operations, non-GAAP net income, non-GAAP net income attributable to ordinary shareholders of Secoo Holding Limited, and non-GAAP basic and dilutive net income per share and ADS as additional non-GAAP financial measures. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance. We define non-GAAP net income as net income excluding share-based compensation. We define non-GAAP net income per share as non-GAAP net income attributable to ordinary shareholders of Secoo Holding Limited dividing by weighted average number of basic and diluted share outstanding, including the dilutive effect of share-based awards as determined under the treasury stock method. We define non-GAAP basic and diluted net income per ADS as non-GAAP basic and diluted net income per share divided by two as two ADSs represent one ordinary share. We also believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our consolidated results of operations in the same manner as our management and in comparing financial results across accounting periods and to those of our peer companies.The use of non-GAAP financial measures has certain limitations. These non-GAAP measures exclude certain items that have been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, and should not be considered a substitute for or superior to U.S. GAAP results. In addition, these non-GAAP financial measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as Secoo does.Reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure is set forth at the end of this release.Exchange Rate Information
This press release contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB7.1477 to US$1.0, the noon buying rate in New York for cable transfers of RMB as certified for customs purposes by the Federal Reserve Bank of New York in effect as of September 30, 2019.Safe Harbor StatementThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to Secoo management quotes and the Company’s financial outlook. These forward-looking statements can be identified by terminology such as “will,” “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “intend,” “potential,” “plan,” “goal” and similar statements. Secoo Holding Limited may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These forward-looking statements include, but are not limited to, statements about: the Company’s goals and strategies; its future business development, financial condition and results of operations; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; Chinese governmental policies relating to the Company’s industry and general economic conditions in China. For additional information on these and other important factors that could adversely affect the Company’s business, financial condition, results of operations and prospects, please see its filings with the U.S. Securities and Exchange Commission.For investor and media inquiries, please contact:In China:
Secoo Holding Limited
Jingbo Ma
Tel: +86 (10) 6588-0135
E-mail: ir@secoo.comThe Piacente Group, Inc.
Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: Secoo@tpg-ir.comIn the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1-212-481-2050
E-mail: Secoo@tpg-ir.com