Yunji (NasdaqCM:YJ) Q4 2025 Earnings call March 27, 2026 07:30 AM ET Company ParticipantsNan Song - Senior Financial DirectorShanglue Xiao - Chairman and CEONone - TranslatorOperatorGood morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Yunji's second half 2025 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer, and Ms. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we ...

Yunji (NasdaqCM:YJ) Q4 2025 Earnings call March 27, 2026 07:30 AM ET Company ParticipantsNan Song - Senior Financial DirectorShanglue Xiao - Chairman and CEONone - TranslatorOperatorGood morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Yunji's second half 2025 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer, and Mr. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we ...

Yunji (NasdaqCM:YJ) Q4 2025 Earnings call March 27, 2026 07:30 AM ET Speaker1Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Yunji's second half 2025 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer, and Mr. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Priva ...

Yunji Announces Second Half and Fiscal Year 2025 Unaudited Financial Results Accessibility StatementSkip Navigation Total cost of revenues increased by 3.0% to RMB92.7 million (US$13.3 million), or 58.4% of total revenues, from RMB90.0 million, or 49.0% of total revenues, in the same period of 2024. Total cost of revenues primarily comprises costs related to sales of merchandise. The increase was primarily driven by higher merchandise sales. Revenues and related costs from merchandise sales are recogniz ...

Core Viewpoint - Yunji Inc. plans to release its unaudited financial results for the second half and fiscal year ended December 31, 2025, on March 27, 2026, before market opening [1]. Group 1: Financial Results Announcement - The earnings release will be available on the Company's investor relations website [1]. - A conference call is scheduled for March 27, 2026, at 7:30 A.M. Eastern Time to discuss the earnings [2]. - The conference call can be accessed through various toll-free numbers for international, U.S., Mainland China, and Hong Kong listeners [2]. Group 2: Company Overview - Yunji Inc. is a leading social e-commerce platform in China, utilizing a membership-based model to enhance social interactions [4]. - The platform offers high-quality products at competitive prices across various categories, catering to the daily needs of Chinese consumers [4]. - The Company employs advanced technologies such as big data and artificial intelligence to improve user experience and encourage member promotion of the platform [4].

Financial Performance - In the first half of 2025, the company reported revenue of 158 million, representing a year-on-year decline of 32.5%, with a net loss of 100 million [2] Strategic Initiatives - In September 2025, the company focused on an organic health strategy aimed at optimizing the supply chain and upgrading products to transform into a health lifestyle ecosystem [3] - Future attention will be on the execution of this strategy, including the expansion of new product categories and dynamics of technological investment [3]

Core Viewpoint - Jingling Group, once a unicorn in the e-commerce sector, is currently facing public scrutiny due to allegations, reflecting broader challenges in the social e-commerce industry [1][3] Company Overview - Jingling Group, headquartered in Hangzhou, operates as a technology-driven private domain social e-commerce platform, aiming to simplify entrepreneurship through an S2B2C model [1] - As of 2024, Jingling has served over 6 million private domain entrepreneurs, achieving an annual transaction volume (GMV) exceeding 50 billion yuan, with over 85% of entrepreneurs being women from lower-tier cities [3] Industry Challenges - The social e-commerce sector is experiencing a decline, with few giants remaining, as exemplified by the struggles of competitors like Yunji and Xingsheng Youxuan [3][12] - The rise of social e-commerce was initially fueled by platforms like Pinduoduo, which leveraged WeChat for user acquisition and innovative marketing strategies [4][7] - However, the sector is now plagued by issues such as regulatory scrutiny, allegations of pyramid schemes, and rampant counterfeit goods, leading to a loss of consumer trust [8][11] Market Dynamics - The social e-commerce model relies heavily on interpersonal relationships to reduce customer acquisition costs and enhance retail efficiency, but this has led to compliance issues and operational challenges [8][9] - Major players in the sector have faced significant penalties for operating in a legally gray area, impacting their growth and market presence [9][11] Transition and Future Outlook - Despite the decline of traditional social e-commerce models, the integration of social elements into e-commerce remains relevant, with platforms exploring new growth avenues [16] - Companies like Yunji and Xingsheng Youxuan are attempting to pivot their strategies, focusing on organic products and live-streaming sales, although they face regulatory challenges [16][17]

Financial Data and Key Metrics Changes - Total revenue decreased to RMB 158.3 million from RMB 233.8 million year-over-year, reflecting a decline due to softer consumer confidence [13] - Revenue from merchandise sales was RMB 131.7 million, while marketplace business revenue was RMB 24.5 million, impacted by ongoing product selection optimization [14] - Gross margin remained solid at 47.3%, supported by customer loyalty and effective product curation [14] - Operating expenses increased to RMB 179.4 million from RMB 149.1 million year-over-year, with a significant rise in general and administrative expenses due to higher credit loss allowances [16] - Net loss was RMB 100.7 million compared to a net loss of RMB 8 million a year ago, indicating a substantial increase in losses [17] Business Line Data and Key Metrics Changes - The flagship product Youjiang Organic achieved RMB 5 million in sales at launch, contributing to brand awareness in the health sector [5] - Blinds Lemon Coffee sales exceeded RMB 10 million, while Probind Audis bolus reached nearly RMB 7 million [6] - The SUYEA PRO Xilin Firming series generated over RMB 10 million in sales, indicating strong market reception [7] - The Jianxin Tea Therapy business reached a 50% participation rate among frequent users, showcasing customer loyalty [9] Market Data and Key Metrics Changes - The company is expanding public domain channels and enhancing WeChat transaction volumes, which currently exceed 92.5% of peers [8] - Community group leaders are increasingly focusing on private domain e-commerce, indicating a shift in retail dynamics [11] Company Strategy and Development Direction - The company remains committed to its organic health strategy, viewing it as a long-term opportunity despite current market challenges [5] - Plans to expand brand influence through integrated organic health concepts and optimize product mix are in place [6] - Future focus will be on expanding community group leader channels and placing organic foods in their stores to enhance accessibility [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged market uncertainties but emphasized the importance of maintaining financial discipline and optimizing cost structures [13][19] - The company aims to achieve breakeven and strengthen its financial position while preparing for future growth opportunities [19] Other Important Information - The company has a cash position of RMB 217.1 million, providing adequate coverage for obligations [17] - The focus on loss integration and efficient asset utilization is crucial for future improvements [19] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating a lack of interaction during the Q&A segment [21]

Core Viewpoint - Yunji Inc. is undergoing a strategic transformation towards organic living, focusing on high-margin and high-retention categories while optimizing its cost structure and capital allocation to improve profitability and support sustainable growth [2][3]. Financial Performance - Total revenues for the first half of 2025 were RMB158.3 million (US$22.1 million), a decrease from RMB233.8 million in the same period of 2024, attributed to soft consumer confidence and a refined product selection strategy [3][6]. - Revenues from merchandise sales were RMB131.7 million (US$18.4 million), down from RMB185.0 million in the same period of 2024 [7]. - Total cost of revenues decreased by 31.2% to RMB83.5 million (US$11.7 million), representing 52.7% of total revenues, compared to 51.9% in the same period of 2024 [4]. - Total operating expenses increased by 20.3% to RMB179.4 million (US$25.0 million) from RMB149.1 million in the same period of 2024 [5]. - Loss from operations was RMB100.4 million (US$14.0 million), compared to RMB32.4 million in the same period of 2024 [9]. - Net loss was RMB100.7 million (US$14.1 million), compared to RMB8.0 million in the same period of 2024 [10]. Cost Structure and Expenses - Fulfillment expenses decreased by 51.7% to RMB20.6 million (US$2.9 million), or 13.0% of total revenues, from RMB42.6 million, or 18.2% of total revenues, in the same period of 2024 [8]. - Sales and marketing expenses increased by 5.5% to RMB50.1 million (US$7.0 million), or 31.6% of total revenues, from RMB47.5 million, or 20.3% of total revenues, in the same period of 2024 [8]. - General and administrative expenses surged by 178.6% to RMB93.4 million (US$13.0 million), or 59.0% of total revenues, from RMB33.5 million, or 14.3% of total revenues, in the same period of 2024 [9]. Membership and Customer Engagement - The repeat purchase rate for the twelve months ended June 30, 2025, was 71.0%, indicating strong customer retention [6]. Balance Sheet Overview - As of June 30, 2025, total assets were RMB1,223.98 million (US$170.86 million), down from RMB1,352.45 million as of December 31, 2024 [21][24]. - Current liabilities decreased to RMB233.88 million (US$32.65 million) from RMB262.24 million [23]. Strategic Initiatives - The company is focusing on expanding user acquisition through both online and offline channels to enhance customer engagement and deliver greater value to members [2]. - Yunji is committed to maintaining financial discipline while driving improved profitability and supporting long-term sustainable growth [2].

Core Viewpoint - Yunji Inc. plans to release its unaudited interim financial results on August 21, 2025, before market opens, indicating a commitment to transparency and investor communication [1][2]. Company Overview - Yunji Inc. is a leading social e-commerce platform in China, utilizing a membership-based model to enhance social interactions and consumer engagement [3]. - The platform offers a wide variety of high-quality products at attractive prices, catering to the daily needs of Chinese consumers [3]. - The company employs advanced technologies such as big data and artificial intelligence to improve user experience and encourage members to promote the platform [3]. - Yunji has established a trustworthy reputation through deliberate product curation, centralized merchandise sourcing, and efficient supply chain management, providing exclusive membership benefits including discounted prices [3]. Conference Call Details - A conference call will be held on August 21, 2025, at 7:30 A.M. Eastern Time to discuss the earnings, with multiple access numbers provided for international listeners [2]. - The replay of the conference call will be available until August 28, 2025, along with a live and archived webcast on the company's investor relations website [2].