Ruhnn Holding Limited (“Ruhnn” or the “Company”) (NASDAQ: RUHN), a
leading internet key opinion leader (“KOL”) facilitator in China,
today announced its unaudited financial results for the fourth
quarter and fiscal year ended March 31, 2020.
“We capped off a year of strong overall operational and
financial performance for the full fiscal year 2020, despite the
impact of Covid-19 pandemic in China during the fourth quarter, a
historically slower seasonal quarter for our business. We continued
solidifying the foundation for the Company’s long-term sustainable
business development through improving operational efficiency and
profitability, in addition to the rapid growth in total net
revenue, particularly through services revenue, which achieved over
100% year-over-year growth in the fiscal year 2020. E-commerce
live-streaming has also emerged as an important monetization
channel under the platform model,” Mr. Lei Sun, founder, director
and Chief Executive Officer of Ruhnn, commented.
“Entering fiscal year 2021, we will continue strengthening our
leading KOL incubation and transaction platform in China, by
expanding and enhancing our KOL pool and covered fans on major
social media platforms, while exploring and further developing KOL
monetization channels, to serve more KOLs and brands. We will also
actively pursue acquisition opportunities that fit within our
business strategy,” Mr. Sun concluded.
“We are well positioned to achieve profitability for the full
fiscal year 2021 on a non-GAAP basis, building on a successful
fiscal year 2020, in which we managed to achieve our fiscal year
2020 revenue target, narrow non-GAAP adjusted net loss attributable
to Ruhnn significantly by 81% year-over-year, and generate a
positive net cash provided by operating activities,” Mr. Jacky
Wang, Chief Financial Officer of Ruhnn, commented.
“In addition, our recently announced share repurchase program of
up to US$15.0 million reflects our confidence in the Company's
business fundamentals and long-term prospects, and our commitment
to enhancing shareholder value,” Mr. Wang added.
Fourth Quarter
Financial Highlights:
- Total net revenue decreased 4% year-over-year
to RMB228.2 million (US$32.2 million). Services revenue in the
platform model increased 24% year-over-year to RMB62.2 million
(US$8.8 million).
- Total gross profit increased 51%
year-over-year to RMB84.3 million (US$11.9 million), with gross
profit from services increasing 19% year-over-year to RMB33.8
million. Gross margin increased to 37% from 23%
for the same quarter of last fiscal year.
- Net loss attributable to Ruhnn narrowed 6%
year-over-year to RMB26.4 million (US$3.7 million, inclusive of an
aggregate of RMB10.9 million of amortization expense of intangible
assets in relation to exclusive cooperation rights, share-based
compensation expense and litigation costs).
- Adjusted net loss attributable to Ruhnn1
narrowed 45% year-over-year to RMB15.4 million (US$2.2
million).
- Net cash used in operating activities was
RMB47.5 million (US$6.7 million) compared to RMB55.1 million for
the same quarter of last fiscal year.
Fiscal Year
2020 Financial
Highlights:
- Total net revenue increased 19% year-over-year
to RMB1,295.9 million (US$183.0 million). Services revenue in the
platform model increased 101% year-over-year to RMB303.2 million
(US$42.8 million).
- Total gross profit increased 43%
year-over-year to RMB489.7 million (US$69.2 million), with gross
profit from services increasing 110% year-over-year to RMB172.6
million. Gross margin increased to 38% from 31%
for the last fiscal year.
- Net loss attributable to Ruhnn increased 26%
year-over-year to RMB92.5 million (US$13.1 million, inclusive of an
aggregate of RMB78.9 million of amortization expense of intangible
assets in relation to exclusive cooperation rights, share-based
compensation expense and litigation costs).
- Adjusted net loss attributable to Ruhnn1
narrowed 81% year-over-year to RMB13.6 million (US$1.9
million).
- Net cash provided by operating activities was
RMB50.6 million (US$7.1 million) compared to net cash used in
operating activities of RMB9.4 million for the last fiscal
year.
_____________1 Adjusted net loss attributable to Ruhnn is a
non-GAAP measure, which excludes certain noncash or nonrecurring
expenses. See “Unaudited Reconciliation of GAAP and Non-GAAP
Financial Measures” at the end of this press release.
Fourth Quarter and Fiscal Year
2020 Operational Highlights:
- GMV2 increased 0.3% and 41% year-over-year to
RMB650.0 million and RMB4,035.8 million for the fourth quarter and
fiscal year ended March 31, 2020, respectively.
- Number of signed KOLs increased to 168 as of
March 31, 2020 from 128 as of March 31, 2019.
- Total numbers of platform top-tier, established and
emerging KOLs3 increased to 37 as of March 31, 2020 from
22 as of March 31, 2019.
- Accumulated number of brands that the
Company cooperated with increased to 1,035 as of March 31,
2020 from 632 as of March 31, 2019.
Summary Operation Data
The following table presents the Company’s classification of its
KOLs based on GMV facilitated during the past twelve months:
|
|
As of and for the three months ended |
|
|
|
March 31, 2019 |
|
|
March 31, 2020 |
|
|
|
Number of KOLs |
|
Number ofFans(1)(In
millions) |
|
|
GMV(RMB inmillions) |
|
|
Number of KOLs |
|
Number ofFans(1)(In
millions) |
|
|
GMV(RMB inmillions) |
|
Top-tier KOLs(2) |
|
3 |
|
34.6 |
|
|
|
310.2 |
|
|
3 |
|
|
37.9 |
|
|
|
350.3 |
|
Established KOLs(3) |
|
8 |
|
31.4 |
|
|
|
89.0 |
|
|
11 |
|
|
38.9 |
|
|
|
141.6 |
|
Emerging KOLs(4) |
|
117 |
|
|
89.1 |
|
|
|
249.1 |
|
|
154 |
|
|
129.5 |
|
|
|
158.1 |
|
Total |
|
128 |
|
155.1 |
|
|
|
648.3 |
|
|
168 |
|
|
206.3 |
|
|
|
650.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The number of fans presented may include a single fan who
was included multiple times if the fan follows more than one KOL,
follows the same KOL across multiple platforms, or both.(2)
Top-tier KOLs facilitated GMV of above RMB100.0 million in the past
twelve months.(3) Established KOLs facilitated GMV of RMB30.0
million to RMB100.0 million in the past twelve months.(4) Emerging
KOLs facilitated GMV of less than RMB30.0 million in the past
twelve months.
The following table presents operation data by full-service
model and platform model:
|
|
As of and for the three months ended |
|
|
|
March 31, 2019 |
|
March 31, 2020 |
|
Full-Service Model(1) |
|
|
|
|
|
|
Number of the Company’s KOLs
serving such business model(2) |
|
14 |
|
3 |
|
Number of the Company’s online
stores |
|
56 |
|
19 |
|
Number of orders placed
through the Company’s online stores (in million) |
|
1.3 |
|
|
1.4 |
|
GMV of the Company’s online
stores (RMB in million) |
|
370.5 |
|
|
304.2 |
|
Platform
Model(3) |
|
|
|
|
|
|
Number of the Company’s KOLs
serving such business model(2) |
|
122 |
|
137 |
|
Accumulated number of brands
that the Company cooperated with |
|
632 |
|
1,035 |
|
Number of brands that the
Company cooperated with during the period |
|
220 |
|
242 |
|
GMV of third-party online
stores(4) (RMB in million) |
|
277.8 |
|
|
345.8 |
|
(1) Under the full-service model, the Company owns and operates
online stores on third-party e-commerce platforms, a majority of
which are opened in the name of the Company’s KOLs, and generate
revenue through online sales of the Company’s self-designed
products to consumers, especially the fans of the Company’s KOLs’
social media accounts that the Company manages.(2) Certain KOLs
under the Company’s full-service model overlap with those under the
platform model. On the other hand, the Company’s KOLs that were
undergoing training and had not started generating GMV or revenue
under either of the business models as of the relevant date, were
not included in these numbers.(3) Under the platform model, the
Company connects KOLs with third-party online stores and merchants
to promote products sold in third-party online stores or provides
advertising services on KOLs’ social media spaces to third-party
merchants.(4) Includes GMV from third-party online stores to which
the Company only provides KOL sales services.
________________________
2 “GMV” refers to gross merchandize value, which represents the
aggregate value of merchandize ordered in the Company’s online
stores and third-party online stores to which the Company provides
KOL sales services (but not includes online stores to which the
Company only provides KOL advertising services), regardless of
whether the merchandise is actually sold, delivered or returned.
The calculation of GMV includes shipping charges paid by buyers.
GMV of third-party online stores to which the Company provides KOL
sales services includes the GMV of all products ordered in such
stores because the Company generally provides KOL sales services
for all products sold in such stores. Since January 2019, the
Company has provided KOL sales services for specified products in
certain third-party online stores, and in such cases, only the GMV
of such products for which the Company provided KOL sales services
is included in the GMV for the relevant periods.
3 Platform top-tier, established and emerging KOLs include KOLs
that generated services revenue of RMB1.2 million or more in the
past twelve months under the platform model.
As a result of the significant expansion of the Company’s
business under the platform model, the Company generated an
increasing amount of advertising service revenue provided through
its KOLs that does not have associated GMV. As an additional
measure to assess its KOLs’ performance, the Company classifies its
KOLs based on the total services revenue generated by the KOLs
under the platform model during the previous twelve months.
The following table presents the Company’s classification of its
KOLs who generated services revenue of RMB1.2 million or more in
the previous twelve months under the platform model:
|
|
As of and for the three months ended |
|
|
|
March 31, 2019 |
|
March 31, 2020 |
|
|
|
Number of KOLs |
|
Services Revenue(RMB in
millions) |
|
Number of KOLs |
|
Services Revenue(RMB in
millions) |
|
Platform Top-tier KOLs(1) |
|
1 |
|
2.8 |
|
8 |
|
|
29.4 |
|
Platform Established
KOLs(2) |
|
12 |
|
16.8 |
|
14 |
|
15.7 |
|
Platform Emerging KOLs(3) |
|
9 |
|
6.3 |
|
15 |
|
8.5 |
|
(1) Platform top-tier KOLs generated services revenue of RMB10.0
million or more in the past twelve months under the platform
model.(2) Platform established KOLs generated services revenue of
RMB3.0 million to RMB10.0 million in the past twelve months under
the platform model.(3) Platform emerging KOLs generated services
revenue of RMB1.2 million to RMB3.0 million in the past twelve
months under the platform model. KOLs that generated services
revenue of less than RMB1.2 million in the past twelve months were
not included in this table.
Fourth Quarter of Fiscal Year 2020
Financial Results
Net revenue. Total net revenue was RMB228.2
million (US$32.2 million), a decrease of RMB9.1 million or 4% from
RMB237.3 million for the same quarter of last fiscal year, which
was mainly due to the impact from the Covid-19 pandemic in China as
well as the transition of some of the Company’s online stores from
the full-service model to the platform model.
- Revenue from product sales through the full-service
model was RMB166.0 million (US$23.4 million), a decrease
of RMB20.9 million or 11% from RMB186.9 million for the same
quarter of last fiscal year. The decrease was primarily
attributable to the transition of the business model of some online
stores opened in the name of the Company’s emerging and established
KOLs from the full-service model to the platform model. As a result
of this transition, the number of the Company’s online stores
decreased to 19 as of March 31, 2020 from 56 as of March 31, 2019,
and the number of the Company’s KOLs serving the full-service model
decreased to 3 as of March 31, 2020 from 14 as of March 31, 2019.
In addition, impact from the Covid-19 pandemic generally affected
the Company’s product manufacturing, logistics and fulfillment.
Nevertheless, product sales revenue from the Company’s online
stores that were opened in the name of the Company’s top-tier KOLs
and were in operation in both periods increased by 5% compared to
the same quarter of fiscal year 2019.
- Revenue from services through the platform
model was RMB62.2 million (US$8.8 million), an increase of
RMB11.9 million or 24% from RMB50.3 million for the same quarter of
last fiscal year. The increase was mainly attributable to (i) the
increase in the number of KOLs serving the Company’s platform
model, which increased 12% to 137 as of March 31, 2020 from 122 as
of March 31, 2019; (ii) the improved performance of such KOLs as
evidenced by the increase in the aggregate number of the platform
top-tier, established and emerging KOLs to 37 as of March 31, 2020
from 22 as of March 31, 2019; and (iii) an increase in the number
of brands, with which the Company cooperated in its advertising
business, to 242 in the fourth quarter of fiscal year 2020 from 220
for the same quarter of last fiscal year.
Cost of revenue. Cost of revenue was RMB144.0
million (US$20.3 million), a decrease of RMB37.5 million or 21%
from RMB181.5 million for the same quarter of last fiscal year,
which was mainly attributable to the decrease in the total net
revenue. Cost of revenue primarily included product costs,
inventory write-downs and KOL service fees.Gross
profit. Gross profit was RMB84.3 million (US$11.9
million), an increase of RMB28.6 million or 51% from RMB55.7
million for the same quarter of last fiscal year. Gross margin
increased significantly to 37% from 23% for the same quarter of
last fiscal year, with gross margin of product sales also
increasing significantly to 30% compared to 15% for the same
quarter of last fiscal year, primarily attributable to the decrease
in inventory write-downs as a result of better inventory control
during the fourth quarter of fiscal year 2020.
Total operating expenses. Total operating
expenses were RMB118.4 million (US$16.7 million), an increase of
RMB28.6 million or 32% from RMB89.8 million for the same quarter of
last fiscal year. Included in the total operating expenses was an
aggregate of RMB10.9 million of noncash amortization expense of
intangible assets in relation to exclusive cooperation rights,
noncash share-based compensation expense, and litigation costs in
the fourth quarter of fiscal year 2020 compared to nil in the same
quarter of last fiscal year. Total net revenue during the fourth
quarter of fiscal year 2020 was impacted by the Covid-19 pandemic
while certain operating expenses were fixed. Total operating
expenses accounted for 52% and 38% (or 47% and 38%, exclusive of an
aggregate of RMB10.9 million non-cash charges and litigation costs
for the fourth quarter of fiscal year 2020 as mentioned above) of
the total net revenue for the fourth quarter of fiscal year 2020
and 2019, respectively.
- Fulfillment expenses were RMB21.6 million
(US$3.1 million), a decrease of RMB5.7 million or 21% from RMB27.3
million for the same quarter of last fiscal year. The decrease was
largely in line with the decrease in product sales.
- Sales and marketing expenses were RMB63.2
million (US$8.9 million), an increase of RMB15.9 million or 34%
from RMB47.3 million for the same quarter of last fiscal year.
Sales and marketing expenses consist primarily of expenses for KOL
incubation, cultivation, and content production, and personnel
costs of related support teams, for the Company’s platform KOLs, as
well as expenses incurred for the Company’s advertising, marketing
and brand promotion activities and personnel costs of related
operation team under the full-services model. Following the
expansion of KOL pool from 128 signed KOLs as of March 31, 2019 to
168 as of March 31, 2020, related expenses for KOL incubation,
cultivation, and content production, and the personnel costs of
related support teams to support increased activities for the
Company’s KOL sales and advertising business increased accordingly.
In addition, the year-over-year increase in sales and marketing
expenses was also attributable to the noncash amortization expense
of intangible assets in relation to exclusive cooperation rights of
RMB5.2 million, and the noncash amortization of share-based
compensation expense of RMB1.3 million.
- General and administrative expenses were
RMB33.5 million (US$4.7 million), an increase of RMB17.9 million or
114% from RMB15.6 million for the same quarter of last fiscal year.
The increase was primarily driven by the increased share-based
compensation expense of RMB2.6 million, professional fees of RMB9.6
million and bad debt provision of RMB2.2 million.
Loss before income taxes. Loss before income
taxes was RMB26.0 million (US$3.7 million) compared to RMB26.3
million for the same quarter of last fiscal year, as a result of
the foregoing.
Income taxes. Income tax expense was RMB2.3
million (US$0.3 million) compared to RMB0.9 million for the same
quarter of last fiscal year.
Net loss attributable to
Ruhnn. Net loss attributable to Ruhnn was RMB26.4 million
(US$3.7 million, inclusive of an aggregate of RMB10.9 million of
noncash amortization expense of intangible assets in relation to
exclusive cooperation rights, noncash share-based compensation
expense, and litigation costs) compared to RMB28.1 million for the
same quarter of last fiscal year. Adjusted net loss
attributable to Ruhnn. Adjusted net loss attributable to
Ruhnn narrowed 45% to RMB15.4 million (US$2.2 million) from RMB28.1
million for the same quarter of last fiscal year.
Fiscal Year 2020 Financial
Results
Net revenue. Total net revenue was RMB1,295.9
million (US$183.0 million), an increase of RMB202.5 million or 19%
from RMB1,093.4 million for the last fiscal year despite the impact
of Covid-19 pandemic in China during the fourth quarter.
- Revenue from product sales through the full-service
model was RMB992.6 million (US$140.2 million), an increase
of RMB49.8 million or 5% from RMB942.8 million for the last fiscal
year. The increase was primarily attributable to the sales growth
of the online stores opened in the name of the Company’s top-tier
KOLs, partially offset by the transition of the business model of
some online stores opened in the name of the Company’s emerging and
established KOLs from the full-service model to the platform model,
as discussed above in Fourth Quarter of Fiscal Year 2020 Financial
Results. However, product sales revenue from the Company’s online
stores that were opened in the name of the Company’s top-tier KOLs
and were in operation in both fiscal years increased by 40%
compared to the last fiscal year.
- Revenue from services through the platform
model was RMB303.2 million (US$42.8 million), an increase
of RMB152.5 million or 101% from RMB150.7 million for the last
fiscal year. This increase was mainly attributable to (i) the
increase in the number of KOLs serving the Company’s platform
model, which increased 12% to 137 as of March 31, 2020 from 122 as
of March 31, 2019; (ii) the improved performance of such KOLs as
evidenced by the increase in the aggregate number of the platform
top-tier, established and emerging KOLs to 37 as of March 31, 2020
from 22 as of March 31, 2019; and (iii) an increase in the number
of brands, with which the Company cooperated in its advertising
business, to 735 for the fiscal year 2020 from 507 for the last
fiscal year.
Cost of revenue. Cost of revenue was RMB806.1
million (US$113.8 million), an increase of RMB54.7 million or 7%
from RMB751.4 million for the last fiscal year, which was mainly
attributable to the increase in total net revenue. Cost of revenue
primarily includes product costs, inventory write-downs and KOL
service fees.Gross profit. Gross profit was
RMB489.7 million (US$69.2 million), an increase of RMB147.7 million
or 43% from RMB342.0 million for the last fiscal year. Gross margin
increased to 38% from 31% for the last fiscal year, with gross
margin of services increasing to 57% compared to 55% for the last
fiscal year.
Total operating expenses. Total operating
expenses were RMB607.2 million (US$85.7 million), an increase of
RMB183.6 million or 43% from RMB423.6 million for the last fiscal
year. Included in total operating expenses was an aggregate of
RMB78.9 million of noncash amortization expense of intangible
assets in relation to exclusive cooperation rights, noncash
share-based compensation expense, and litigation costs for the
fiscal year 2020 compared to nil for the last fiscal year. Total
net revenue during the fourth quarter of fiscal year 2020 was
impacted by the Covid-19 pandemic while certain operating expenses
were fixed. Total operating expenses accounted for 47% and 39% (or
41% and 39%, exclusive of an aggregate of RMB78.9 million noncash
charges and litigation costs for the fiscal year 2020 as mentioned
above) of total net revenue for the fiscal years of 2020 and 2019,
respectively.
- Fulfillment expenses were RMB134.9 million
(US$19.0 million), an increase of RMB8.0 million or 6% from
RMB126.9 million of last fiscal year. The increase was in line with
the increase in product sales. Fulfillment expenses accounted for
14% and 13% (or 13% and 13%, exclusive of the aggregate of RMB1.6
million noncash share-based compensation expense in the fiscal year
2020) of product sales revenue during the fiscal years of 2020 and
2019, respectively.
- Sales and marketing expenses were RMB305.2
million (US$43.1 million), an increase of RMB99.5 million or 48%
from RMB205.7 million of last fiscal year. Sales and marketing
expenses consist primarily of expenses for KOL incubation,
cultivation, content production and training, and personnel costs
of related support teams, for the Company’s platform KOLs, as well
as expenses incurred for the Company’s advertising, marketing and
brand promotion activities and personnel costs of related operation
team under the full-services model. Following the expansion of KOL
pool from 128 signed KOLs as of March 31, 2019 to 168 as of March
31, 2020, related expenses for KOL incubation, cultivation and
content production, and the personnel costs of related support
teams to support increased activities for the Company’s KOL sales
and advertising business increased accordingly. In addition, the
year-over-year increase in sales and marketing expenses was also
attributable to the noncash amortization expense of intangible
assets in relation to exclusive cooperation rights of RMB20.6
million and the noncash amortization of share-based compensation
expense of RMB10.2 million. Sales and marketing expenses accounted
for 24% and 19% (or 21% and 19%, exclusive of the aggregate of
RMB30.8 million noncash amortization expense of intangible assets
and share-based compensation expense in the fiscal year 2020) of
total net revenue during the fiscal years of 2020 and 2019,
respectively.
- General and administrative expenses were
RMB167.8 million (US$23.7 million), an increase of RMB75.8 million
or 82% from RMB92.0 million for the last fiscal year. The increase
was primarily driven by the increased share-based compensation
expense of RMB43.5 million, professional fees of RMB21.0 million
and bad debt provision of RMB5.8 million. General and
administrative expenses accounted for 13% and 8% (or 9% and 8%,
exclusive of the aggregate of RMB46.5 million share-based
compensation expense and litigation costs in the fiscal year 2020)
of total net revenue during the fiscal years of 2020 and 2019,
respectively.
Loss before income taxes. Loss before income
taxes was RMB89.1 million (US$12.6 million) compared to RMB73.4
million for the last fiscal year, as a result of the foregoing.
Income taxes. Income tax expense was RMB8.7
million (US$1.2 million) compared to RMB10.4 million for the last
fiscal year.
Net loss attributable to
Ruhnn. Net loss attributable to Ruhnn was RMB92.5 million
(US$13.1 million, inclusive of an aggregate of RMB78.9 million of
noncash amortization expense of intangible assets in relation to
exclusive cooperation rights, noncash share-based compensation
expense, and litigation costs) compared to RMB73.2 million for the
last fiscal year. Adjusted net loss attributable to
Ruhnn. Adjusted net loss attributable to Ruhnn narrowed
81% to RMB13.6 million (US$1.9 million) from RMB73.2 million for
the last fiscal year.
Balance Sheet and Cash Flow
As of March 31, 2020, the Company had cash and cash
equivalents, restricted cash and short-term investment of RMB800.6
million (US$113.1 million) compared to RMB103.8 million as of
March 31, 2019.
Net cash used in operating activities was RMB47.5 million
(US$6.7 million) for the fourth quarter of fiscal year 2020
compared to RMB55.1 million for the same quarter of last fiscal
year.
Net cash provided by operating activities was RMB50.6 million
(US$7.1 million) for the fiscal year 2020 compared to net cash used
in operating activities of RMB9.4 million for the last fiscal
year.
Impact of Covid-19
The Covid-19 pandemic has adversely impacted the Company’s
business since the fourth quarter of fiscal year 2020. Among other
things, the product manufacturing, logistics and fulfillment of the
Company and certain third-party merchants and brands that
cooperated with the Company were adversely affected due to various
travel restrictions and quarantine measures imposed in China. The
Company has implemented preventative measures to protect the health
and safety of its employees and made appropriate adjustments to its
business operations in response to the pandemic’s impact.
While the Company has seen gradual recovery of its overall
business resulting from improving health statistics in China since
March 2020, the Company still anticipates the negative impact of
the pandemic to continue into the fiscal year 2021, but to a lesser
extent as compared to the fourth quarter of fiscal year 2020.
However, the duration and magnitude of the impact from the
pandemic on the Company’s business will depend on numerous evolving
factors that cannot be accurately predicted or assessed, including
the duration and scope of the pandemic, the negative impact it has
on the Chinese and global economy, its impact on unemployment and
consumer confidence, the Company’s ability to successfully navigate
the impact of the pandemic, as well as actions governments,
businesses and individuals take in response to the pandemic.
Outlook
The Company currently expects, for the full fiscal year 2021,
net revenue from services through the platform model to be between
RMB520.0 million and RMB610.0 million, representing a
year-over-year growth between 72% and 101%, respectively, and total
net revenue to be between RMB1,320.0 million and RMB1,500.0
million, representing a year-over-year growth between 2% and 16%,
respectively.
This forecast reflects the Company’s current and preliminary
view on the current business situation and market conditions,
including the Company’s current estimate of any impact from the
Covid-19 pandemic, which are all subject to change.
Conference Call
The Company’s management will host an earnings conference call
at 8:00 AM U.S. Eastern Time on June 3, 2020 (8:00 PM Beijing/Hong
Kong time on June 3, 2020). Details for the conference call are as
follows:
Event
Title: |
Ruhnn Holding
Limited Fourth Quarter and Full Fiscal Year 2020 Earnings
Conference Call |
Conference ID: |
2788908 |
Registration Link: |
http://apac.directeventreg.com/registration/event/2788908 |
All participants must use the link provided above to complete
the online registration process in advance of the conference call.
Upon registering, each participant will receive a set of
participant dial-in numbers, the Direct Event passcode, and a
unique access PIN, which can be used to join the conference
call.
Participants should dial-in at least 10 minutes before the
scheduled start time to be connected to the call.
Additionally, a live and archived webcast of the conference call
will be available on the Company’s investor relations website at
http://ir.ruhnn.com.
About Ruhnn Holding Limited
Ruhnn Holding Limited is a leading internet key opinion leader
(“KOL”) facilitator in China. The Company connects influential KOLs
who engage and impact their fans on the internet to its vast
commercial network to build the brands of fashion products. Ruhnn
pioneered the commercialization of the KOL ecosystem in China, and
operates under both full-service and platform models. The Company’s
full-service model integrates key steps of the e-commerce value
chain from product design and sourcing and online store operations
to logistics and after-sale services. The platform model promotes
products sold in third-party online stores and provides advertising
services on KOL’s social media spaces to third-party merchants. As
of March 31, 2020, the Company had 168 signed KOLs with an
aggregate of 206.3 million fans across major social media platforms
in China.
For more information, please visit http://ir.ruhnn.com.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP measures, such as adjusted net loss
attributable to Ruhnn and adjusted basic and diluted net loss per
ADS, in evaluating its operating results and for financial and
operational decision-making purposes. The Company believes that the
non-GAAP financial measures help identify underlying trends in its
business by excluding the impact of noncash charges of amortization
expense of intangible assets in relation to exclusive cooperation
rights and share-based compensation expense, and litigation costs
incurred in relation to the class action. The Company believes that
the non-GAAP financial measures provide useful information about
the Company’s results of operations, enhance the overall
understanding of the Company’s past performance and future
prospects and allow for greater visibility with respect to key
metrics used by the Company’s management in its financial and
operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP
and are not presented in accordance with U.S. GAAP. The non-GAAP
financial measures have limitations as analytical tools, and when
assessing the Company’s performance, investors should not consider
them in isolation, or as a substitute for financial information
prepared in accordance with U.S. GAAP.
The Company mitigates these limitations by reconciling the
non-GAAP financial measures to the most comparable U.S. GAAP
performance measures, all of which should be considered when
evaluating the Company’s performance.
For more information on the non-GAAP financial measures, please
see the table captioned “Unaudited Reconciliations of GAAP and
Non-GAAP Financial Measures” set forth at the end of this press
release.
Exchange Rate Information
This announcement contains translations of certain Renminbi
(“RMB”) amounts into U.S. dollars at a specified rate solely for
the convenience of the reader. Unless otherwise noted, all
translations from RMB to U.S. dollars are made at a rate of
RMB7.0808 to US$1.00, the rate in effect as of March 31, 2020
published by the Federal Reserve Board.
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates” and similar statements. Among other things,
the business outlook and quotations from Ruhnn’s management in this
announcement as well as Ruhnn’s strategic and operational plans
contain forward-looking statements. Ruhnn may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (“SEC”) on Forms 20-F and 6-K,
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. Statements that are not
historical facts, including statements about Ruhnn’s beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the Company’s goals and strategies; the
Company’s future business development, financial condition and
results of operations; trends in the internet KOL facilitator
industry in the PRC and globally; competition in the Company’s
industry; fluctuations in general economic and business conditions
in China; and the regulatory environment in which the Company
operates. Further information regarding these and other risks is
included in the Company’s filings with the SEC, including its
registration statement on Form F-1, as amended, and its annual
reports on Form 20-F. All information provided in this press
release is as of the date of this press release, and Ruhnn does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law.
For investor and media inquiries, please
contact:
In China:
Ruhnn Holding LimitedSterling SongSenior
Director of Investor RelationsTel: +86-571-2825-6700E-mail:
ir@ruhnn.com
The Piacente Group, Inc.Emilie WuTel:
+86-21-6039-8363E-mail: ruhnn@thepiacentegroup.com
In the United States:
The Piacente Group, Inc. Brandi
PiacenteTel: +1-212-481-2050E-mail: ruhnn@thepiacentegroup.com
RUHNN HOLDING
LIMITEDUNAUDITED CONDENSED COMBINED AND
CONSOLIDATED BALANCE SHEETS(Amounts in thousands,
except share data)
|
|
March 31, 2019 |
|
|
March 31, 2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
89,960 |
|
|
|
718,478 |
|
|
|
101,468 |
|
Restricted cash |
|
|
13,861 |
|
|
|
5,673 |
|
|
|
801 |
|
Short-term investment |
|
|
- |
|
|
|
76,450 |
|
|
|
10,797 |
|
Accounts receivable, net |
|
|
29,372 |
|
|
|
60,370 |
|
|
|
8,526 |
|
Inventories |
|
|
220,151 |
|
|
|
145,553 |
|
|
|
20,556 |
|
Advances to suppliers |
|
|
42,145 |
|
|
|
32,628 |
|
|
|
4,608 |
|
Prepaid expenses and other
current assets |
|
|
32,969 |
|
|
|
37,312 |
|
|
|
5,269 |
|
Total current
assets |
|
|
428,458 |
|
|
|
1,076,464 |
|
|
|
152,025 |
|
Property and equipment,
net |
|
|
146,071 |
|
|
|
183,404 |
|
|
|
25,902 |
|
Intangible assets, net |
|
|
104,457 |
|
|
|
82,567 |
|
|
|
11,661 |
|
Goodwill |
|
|
1,002 |
|
|
|
1,002 |
|
|
|
142 |
|
Long-term investments |
|
|
7,600 |
|
|
|
87,636 |
|
|
|
12,377 |
|
Other non-current assets |
|
|
1,702 |
|
|
|
2,978 |
|
|
|
421 |
|
TOTAL
ASSETS |
|
|
689,290 |
|
|
|
1,434,051 |
|
|
|
202,528 |
|
LIABILITIES AND
SHAREHOLERS' (DEFICIT) EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
78,061 |
|
|
|
104,822 |
|
|
|
14,804 |
|
Notes payable |
|
|
30,645 |
|
|
|
10,698 |
|
|
|
1,511 |
|
Accrued salary and
benefits |
|
|
58,917 |
|
|
|
68,601 |
|
|
|
9,688 |
|
Accrued expenses and other
current liabilities |
|
|
24,039 |
|
|
|
30,042 |
|
|
|
4,243 |
|
Amounts due to related
parties |
|
|
574,859 |
|
|
|
18,097 |
|
|
|
2,556 |
|
Dividends payable |
|
|
115 |
|
|
|
- |
|
|
|
- |
|
Income tax payable |
|
|
1,674 |
|
|
|
1,662 |
|
|
|
235 |
|
Total current
liabilities |
|
|
768,310 |
|
|
|
233,922 |
|
|
|
33,037 |
|
Long-term deposits |
|
|
1,750 |
|
|
|
2,250 |
|
|
|
318 |
|
Deferred income |
|
|
- |
|
|
|
10,033 |
|
|
|
1,417 |
|
Other non-current
liabilities |
|
|
11,076 |
|
|
|
10,084 |
|
|
|
1,424 |
|
Total
liabilities |
|
|
781,136 |
|
|
|
256,289 |
|
|
|
36,196 |
|
Shareholders'
(deficit) equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
(US$0.000000001 par value; 1,000,000,000 shares authorized,
363,572,659 and 420,956,644 shares issued and outstanding as
of March 31, 2019 and 2020, respectively) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Additional paid-in
capital |
|
|
701,041 |
|
|
|
1,504,848 |
|
|
|
212,525 |
|
Subscription receivable |
|
|
(558,996 |
) |
|
|
- |
|
|
|
- |
|
Accumulated deficit |
|
|
(232,635 |
) |
|
|
(325,126 |
) |
|
|
(45,916 |
) |
Accumulated other
comprehensive income |
|
|
- |
|
|
|
4,598 |
|
|
|
649 |
|
Total Ruhnn
shareholders' (deficit) equity |
|
|
(90,590 |
) |
|
|
1,184,320 |
|
|
|
167,258 |
|
Non-controlling interest |
|
|
(1,256 |
) |
|
|
(6,558 |
) |
|
|
(926 |
) |
Total shareholders'
(deficit) equity |
|
|
(91,846 |
) |
|
|
1,177,762 |
|
|
|
166,332 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
689,290 |
|
|
|
1,434,051 |
|
|
|
202,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RUHNN HOLDING
LIMITEDUNAUDITED CONDENSED COMBINED AND
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS(Amounts in thousands, except share
data)
|
|
Three Months Ended March 31, |
|
|
Year Ended March 31, |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
|
|
186,919 |
|
|
|
166,002 |
|
|
|
23,444 |
|
|
|
942,781 |
|
|
|
992,603 |
|
|
|
140,182 |
|
Services |
|
|
50,338 |
|
|
|
62,247 |
|
|
|
8,791 |
|
|
|
150,657 |
|
|
|
303,247 |
|
|
|
42,827 |
|
Total net
revenue |
|
|
237,257 |
|
|
|
228,249 |
|
|
|
32,235 |
|
|
|
1,093,438 |
|
|
|
1,295,850 |
|
|
|
183,009 |
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales |
|
|
159,624 |
|
|
|
115,516 |
|
|
|
16,314 |
|
|
|
683,057 |
|
|
|
675,494 |
|
|
|
95,398 |
|
Cost of services |
|
|
21,886 |
|
|
|
28,470 |
|
|
|
4,021 |
|
|
|
68,336 |
|
|
|
130,647 |
|
|
|
18,451 |
|
Total cost of
revenue |
|
|
181,510 |
|
|
|
143,986 |
|
|
|
20,335 |
|
|
|
751,393 |
|
|
|
806,141 |
|
|
|
113,849 |
|
Gross
profit |
|
|
55,747 |
|
|
|
84,263 |
|
|
|
11,900 |
|
|
|
342,045 |
|
|
|
489,709 |
|
|
|
69,160 |
|
Operating
expenses(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment |
|
|
27,333 |
|
|
|
21,593 |
|
|
|
3,050 |
|
|
|
126,850 |
|
|
|
134,852 |
|
|
|
19,045 |
|
Sales and marketing |
|
|
47,267 |
|
|
|
63,249 |
|
|
|
8,932 |
|
|
|
205,660 |
|
|
|
305,157 |
|
|
|
43,096 |
|
General and
administrative |
|
|
15,628 |
|
|
|
33,518 |
|
|
|
4,734 |
|
|
|
92,004 |
|
|
|
167,786 |
|
|
|
23,696 |
|
Other operating income,
net |
|
|
(397 |
) |
|
|
- |
|
|
|
- |
|
|
|
(927 |
) |
|
|
(627 |
) |
|
|
(89 |
) |
Total operating
expenses |
|
|
89,831 |
|
|
|
118,360 |
|
|
|
16,716 |
|
|
|
423,587 |
|
|
|
607,168 |
|
|
|
85,748 |
|
Loss from
operations |
|
|
(34,084 |
) |
|
|
(34,097 |
) |
|
|
(4,816 |
) |
|
|
(81,542 |
) |
|
|
(117,459 |
) |
|
|
(16,588 |
) |
Other income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
197 |
|
|
|
7,500 |
|
|
|
1,059 |
|
|
|
488 |
|
|
|
21,854 |
|
|
|
3,086 |
|
Other income (loss), net |
|
|
7,600 |
|
|
|
(232 |
) |
|
|
(33 |
) |
|
|
7,600 |
|
|
|
3,145 |
|
|
|
444 |
|
Foreign exchange (loss)
gain |
|
|
(37 |
) |
|
|
825 |
|
|
|
117 |
|
|
|
34 |
|
|
|
3,391 |
|
|
|
479 |
|
Loss before income
taxes |
|
|
(26,324 |
) |
|
|
(26,004 |
) |
|
|
(3,673 |
) |
|
|
(73,420 |
) |
|
|
(89,069 |
) |
|
|
(12,579 |
) |
Income taxes |
|
|
934 |
|
|
|
2,316 |
|
|
|
327 |
|
|
|
10,413 |
|
|
|
8,724 |
|
|
|
1,232 |
|
Share of loss in equity
method investments |
|
|
163 |
|
|
|
- |
|
|
|
- |
|
|
|
1,090 |
|
|
|
- |
|
|
|
- |
|
Net loss |
|
|
(27,421 |
) |
|
|
(28,320 |
) |
|
|
(4,000 |
) |
|
|
(84,923 |
) |
|
|
(97,793 |
) |
|
|
(13,811 |
) |
Less: Net income (loss)
attributable to non-controlling interest |
|
|
676 |
|
|
|
(1,940 |
) |
|
|
(274 |
) |
|
|
(11,677 |
) |
|
|
(5,302 |
) |
|
|
(749 |
) |
Net loss attributable
to Ruhnn |
|
|
(28,097 |
) |
|
|
(26,380 |
) |
|
|
(3,726 |
) |
|
|
(73,246 |
) |
|
|
(92,491 |
) |
|
|
(13,062 |
) |
Net loss per ordinary
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.09 |
) |
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.23 |
) |
|
|
(0.22 |
) |
|
|
(0.03 |
) |
Net loss per
ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.43 |
) |
|
|
(0.32 |
) |
|
|
(0.05 |
) |
|
|
(1.14 |
) |
|
|
(1.11 |
) |
|
|
(0.16 |
) |
Weighted average
shares used in calculating net loss
per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
328,239,940 |
|
|
|
415,661,878 |
|
|
|
415,661,878 |
|
|
|
321,584,804 |
|
|
|
415,523,933 |
|
|
|
415,523,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(27,421 |
) |
|
|
(28,320 |
) |
|
|
(4,000 |
) |
|
|
(84,923 |
) |
|
|
(97,793 |
) |
|
|
(13,811 |
) |
Other comprehensive
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments |
|
|
- |
|
|
|
109 |
|
|
|
15 |
|
|
|
- |
|
|
|
4,598 |
|
|
|
649 |
|
Comprehensive
loss |
|
|
(27,421 |
) |
|
|
(28,211 |
) |
|
|
(3,985 |
) |
|
|
(84,923 |
) |
|
|
(93,195 |
) |
|
|
(13,162 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based
compensation expense in each category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment |
|
|
- |
|
|
|
59 |
|
|
|
8 |
|
|
|
- |
|
|
|
1,641 |
|
|
|
232 |
|
Sales and marketing |
|
|
- |
|
|
|
1,291 |
|
|
|
182 |
|
|
|
- |
|
|
|
10,221 |
|
|
|
1,443 |
|
General and
administrative |
|
|
- |
|
|
|
2,555 |
|
|
|
361 |
|
|
|
- |
|
|
|
43,489 |
|
|
|
6,142 |
|
Total |
|
|
- |
|
|
|
3,905 |
|
|
|
551 |
|
|
|
- |
|
|
|
55,351 |
|
|
|
7,817 |
|
|
|
|
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|
|
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|
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|
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|
|
|
RUHNN HOLDING
LIMITEDUNAUDITED CONDENSED COMBINED AND
CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in
thousands)
|
|
Three Months Ended March 31, |
|
|
Year Ended March 31, |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net cash (used in) provided by operating activities |
|
|
(55,124 |
) |
|
|
(47,499 |
) |
|
|
(6,708 |
) |
|
|
(9,385 |
) |
|
|
50,566 |
|
|
|
7,141 |
|
Net cash used in investing
activities |
|
|
(3,628 |
) |
|
|
(61,207 |
) |
|
|
(8,645 |
) |
|
|
(6,702 |
) |
|
|
(320,249 |
) |
|
|
(45,228 |
) |
Net cash (used in) provided by
financing activities |
|
|
(8,811 |
) |
|
|
(346 |
) |
|
|
(49 |
) |
|
|
88,987 |
|
|
|
885,475 |
|
|
|
125,053 |
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
|
- |
|
|
|
1,679 |
|
|
|
237 |
|
|
|
- |
|
|
|
4,538 |
|
|
|
641 |
|
(Decrease) increase in
cash, cash equivalents and restricted
cash |
|
|
(67,563 |
) |
|
|
(107,373 |
) |
|
|
(15,165 |
) |
|
|
72,900 |
|
|
|
620,330 |
|
|
|
87,607 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
171,384 |
|
|
|
831,524 |
|
|
|
117,434 |
|
|
|
30,921 |
|
|
|
103,821 |
|
|
|
14,662 |
|
Cash, cash equivalents
and restricted cash at end of
period |
|
|
103,821 |
|
|
|
724,151 |
|
|
|
102,269 |
|
|
|
103,821 |
|
|
|
724,151 |
|
|
|
102,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RUHNN HOLDING
LIMITEDUNAUDITED RECONCILIATION OF GAAP AND
NON-GAAP FINANCIAL MEASURES(Amounts in thousands,
except share data)
|
|
Three Months Ended March 31, |
|
|
Year Ended March 31, |
|
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
Net loss attributable to Ruhnn |
|
|
(28,097 |
) |
|
|
(26,380 |
) |
|
|
(3,726 |
) |
|
|
(73,246 |
) |
|
|
(92,491 |
) |
|
|
(13,062 |
) |
Amortization expense of
intangible assets in relation to exclusive cooperation
rights |
|
|
- |
|
|
|
5,150 |
|
|
|
727 |
|
|
|
- |
|
|
|
20,600 |
|
|
|
2,909 |
|
Share-based compensation
expense |
|
|
- |
|
|
|
3,905 |
|
|
|
551 |
|
|
|
- |
|
|
|
55,351 |
|
|
|
7,817 |
|
Litigation costs |
|
|
- |
|
|
|
1,879 |
|
|
|
265 |
|
|
|
- |
|
|
|
2,986 |
|
|
|
422 |
|
Adjusted net loss
attributable to Ruhnn |
|
|
(28,097 |
) |
|
|
(15,446 |
) |
|
|
(2,183 |
) |
|
|
(73,246 |
) |
|
|
(13,554 |
) |
|
|
(1,914 |
) |
Adjusted net loss per
ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
(0.43 |
) |
|
|
(0.19 |
) |
|
|
(0.03 |
) |
|
|
(1.14 |
) |
|
|
(0.16 |
) |
|
|
(0.02 |
) |
Weighted average
shares used in calculating adjusted net
loss per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
328,239,940 |
|
|
|
415,661,878 |
|
|
|
415,661,878 |
|
|
|
321,584,804 |
|
|
|
415,523,933 |
|
|
|
415,523,933 |
|
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