Question · Q3 2024
Inquired about the likelihood of achieving full-year operating profit, specific Q3 enhancements in supply chain management, and the reasons for achieving positive operating cash flow for three consecutive quarters.
Answer
The company is optimistic about achieving full-year operational profitability. Supply chain improvements in Q3 included reduced fulfillment costs, scaling the Kunpeng logistics network, optimizing warehouse labor and packaging costs, and expanding the franchise fulfillment center model. Positive operating cash flow was driven by achieving operating profit (no longer burning cash) and disciplined working capital management, improving turnover for inventory, accounts payable, and accounts receivable.