Company Overview - Yunji Inc. is a leading membership-based social e-commerce platform in China, leveraging social interactions to enhance its business model [3] - The platform offers high-quality products at attractive prices across various categories, catering to the daily needs of Chinese consumers [3] - The company utilizes advanced technologies such as big data and artificial intelligence to optimize user experience and incentivize members to promote the platform [3] Upcoming Financial Results - Yunji plans to release its fourth quarter and full year 2024 financial results before the market opens on April 21, 2025 [1] - A conference call will be held on the same day at 7:30 A.M. Eastern Time to discuss the earnings [2] - The earnings release and conference call details will be accessible on the company's investor relations website [1][2]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was RMB86.6 million, down from RMB145.1 million in the same period last year, primarily due to softer consumer confidence and ongoing product range refinements [18] - Revenue from merchandise sales was RMB70 million, while marketplace business revenue was RMB14.8 million [18] - Gross margin remained strong at 54.1%, attributed to customer loyalty and effective product curation [19] - Operating loss narrowed to RMB26.2 million from RMB30.3 million a year ago, and net loss decreased to RMB30 million from RMB34.8 million [22] Business Line Data and Key Metrics Changes - The company has optimized its supplier and merchant network, which had a short-term effect on sales [18] - Fulfillment expenses decreased to RMB17.2 million from RMB25.6 million, driven by lower warehousing and logistics costs [19] - Sales and marketing expenses fell to RMB19.3 million from RMB29.6 million, mainly due to a decline in member management fees [20] - Total operational expenses decreased to RMB73.9 million from RMB97.2 million in the same period of 2023 [21] Market Data and Key Metrics Changes - The company is focusing on the health and wellness market, particularly in the organic food space, to align with global wellness trends [10] - Offline wellness stores have been launched to cater to the growing demographic of customers aged 41 to 55 [11] Company Strategy and Development Direction - The company is reinforcing health and wellness as a key pillar of its 10-year strategy, aiming to democratize access to healthy living [10] - The new Yunji Innovation Center will serve as an integrated facility for marketing, training, R&D, and operations, supporting the expansion of health and beauty brands [8] - The company is committed to enhancing operational efficiencies and adjusting strategies to navigate changing market landscapes [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market dynamics but emphasized a solid financial foundation to support strategic initiatives [16] - The company plans to continue seeking growth opportunities while prioritizing financial stability [17] - Future plans include integrating online sales and services with offline wellness offerings to enhance customer loyalty and trust [30] Other Important Information - The company has established a proprietary health certification system to ensure product quality and traceability [10] - As of September 30, 2024, the company had RMB268.4 million in cash and cash equivalents, sufficient to cover payable obligations [23] Q&A Session Summary Question: What is the main difference between offline stores and online e-commerce business? - Management explained that offline wellness stores are an extension of the existing customer base, targeting the 40 to 55 age group, and focus on community engagement [28] - The offline business allows for direct user feedback during service processes, which differs from online marketing strategies [29] - Future plans include integrating online sales with offline wellness services to promote own brands and organic products [30]

Core Viewpoint - Yunji Inc. reported a significant decline in total revenues for Q3 2024, primarily attributed to soft consumer confidence and strategic changes in product selection and supplier optimization [2][5][6]. Financial Performance - Total revenues for Q3 2024 were RMB 86.6 million (US$ 12.4 million), down from RMB 145.1 million in Q3 2023, representing a decrease of approximately 40.3% [2][5]. - Revenues from merchandise sales decreased to RMB 70.0 million (US$ 10.0 million) from RMB 114.1 million, while marketplace revenues fell to RMB 14.8 million (US$ 2.1 million) from RMB 28.7 million [6][24]. - The repeat purchase rate for the twelve months ending September 30, 2024, was 72.7% [2]. Cost Management - Total cost of revenues decreased by 49.6% to RMB 39.8 million (US$ 5.7 million), representing 46.0% of total revenues, down from 54.4% in the same period of 2023 [7]. - Total operating expenses decreased by 24.0% to RMB 73.9 million (US$ 10.6 million) from RMB 97.2 million in Q3 2023 [8]. Operational Efficiency - Fulfillment expenses decreased by 32.8% to RMB 17.2 million (US$ 2.4 million), while sales and marketing expenses dropped by 34.8% to RMB 19.3 million (US$ 2.8 million) [9]. - General and administrative expenses decreased by 8.2% to RMB 25.8 million (US$ 3.7 million) [9]. Losses - Loss from operations was RMB 26.2 million (US$ 3.7 million), an improvement from RMB 30.3 million in Q3 2023 [10]. - Net loss for Q3 2024 was RMB 30.0 million (US$ 4.3 million), compared to RMB 34.8 million in the same period of 2023 [11]. Strategic Focus - The company emphasized its commitment to quality through strategic collaborations with premium suppliers, particularly in the health-conscious market segment [3]. - The management highlighted ongoing efforts in prudent capital allocation and operational efficiency to support sustainable growth [4]. Company Overview - Yunji Inc. operates as a leading membership-based social e-commerce platform in China, focusing on high-quality products and leveraging social interactions to enhance user experience [21].

Core Viewpoint - Yunji Inc. plans to release its third quarter financial results on November 21, 2024, and will hold a conference call to discuss the earnings [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 provide high-quality products at competitive prices [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 reputation for trustworthy e-commerce through product curation, centralized sourcing, and efficient supply chain management, offering exclusive membership benefits like discounted prices [3].

Core Viewpoint - Yunji Inc. has regained compliance with Nasdaq Listing Rule 5450(a)(2) after meeting the minimum bid price requirement for its American Depositary Shares (ADSs) [1][3]. Group 1: Compliance Notification - On September 27, 2024, Yunji received a Compliance Notice from Nasdaq indicating that it has regained compliance with the minimum bid price requirement [1]. - The Company had previously been notified on October 5, 2023, that it was not in compliance with Nasdaq Listing Rule 5450(a)(1) due to the closing bid price of its ADSs being below US$1.00 for 30 consecutive business days [2]. - Following the notification, Yunji applied to transfer its ADS listing from the Nasdaq Global Market to the Nasdaq Capital Market, which granted an additional 180 days to regain compliance [2]. Group 2: Compliance Achievement - The closing bid price of Yunji's ADSs was at or above US$1.00 for 10 consecutive business days from September 13, 2024, to September 26, 2024, fulfilling the compliance requirement [3]. Group 3: Company Overview - Yunji Inc. is a leading social e-commerce platform in China, utilizing a membership-based model to enhance social interactions and provide high-quality products at competitive prices [4]. - The Company employs advanced technologies such as big data and artificial intelligence to improve user experience and encourage member engagement [4]. - Yunji focuses on product curation, centralized sourcing, and efficient supply chain management to establish itself as a reliable e-commerce platform with exclusive membership benefits [4].

Core Viewpoint - Yunji Inc. plans to change the ratio of its American Depositary Shares (ADSs) to its Class A ordinary shares from 1:100 to 1:400, effective on or about September 13, 2024, which will function as a one-for-four reverse ADS split [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 provide high-quality products at competitive prices [4]. - The company leverages advanced technologies such as big data and artificial intelligence to improve user experience and encourage members to promote the platform [4]. - Yunji has established a trustworthy reputation through product curation, centralized sourcing, and efficient supply chain management, offering exclusive membership benefits including discounted prices [4]. ADS Ratio Change Details - The change in the ADS Ratio will require ADS holders to exchange every four existing ADSs for one new ADS, with Deutsche Bank Trust Company Americas managing the exchange process [2]. - No fractional new ADSs will be issued; instead, fractional entitlements will be aggregated and sold, with net cash proceeds distributed to ADS holders [3]. - The change is expected to increase the ADS trading price proportionally, although no assurance is given that the price will be ten times the pre-change price [3].

Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were RMB106 million, down from RMB167.1 million in the same period last year, reflecting a decline driven by softer consumer confidence and adjustments in product range [13] - Revenues from merchandise sales were RMB83 million, while marketplace business revenues were RMB21.1 million, indicating a shift in sales dynamics [13] - Gross margin remained strong at 46.6%, attributed to customer loyalty and effective product creation strategies [14] - Net loss was RMB11.9 million compared to RMB41.5 million a year ago, with adjusted net loss at RMB9.7 million compared to RMB39.8 million in the previous year [16] Business Line Data and Key Metrics Changes - Fulfillment expenses decreased to RMB20.7 million from RMB29.9 million, primarily due to lower warehousing and logistics costs [14] - Sales and marketing expenses fell to RMB21.7 million from RMB33.4 million, reflecting a decline in member management fees [15] - Technology and content expenses were reduced to RMB12.2 million from RMB14.3 million, largely due to lower personnel costs [15] - General and administrative expenses decreased to RMB18.7 million from RMB33.2 million, mainly due to reduced allowance for credit loss [15] Market Data and Key Metrics Changes - The company noted ongoing market dynamics that influenced operations, indicating a challenging environment for consumer confidence [12] - The focus on optimizing the supplier and merger network had a short-term impact on sales, highlighting the need for strategic adjustments in response to market conditions [14] Company Strategy and Development Direction - The company aims to expand its user base by establishing offline wellness spaces and opening its first offline store focused on traditional Chinese medicine [6] - There is a commitment to quality product selection, emphasizing organic grain and health products while avoiding mediocre offerings [7] - The beauty business, particularly the SUYE brand, continues to focus on anti-aging solutions, indicating a strategic emphasis on high-end product development [9] - Marketing innovation is being pursued through technology and AI, particularly in short video content creation, to enhance engagement and drive traffic [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the evolving market landscape and emphasized ongoing improvements in inventory management and cost optimization [17] - The company is committed to enhancing operational efficiencies and adapting strategies to support future growth [17] Other Important Information - As of June 30, 2024, the company had RMB324.5 million in cash and cash equivalents, down from RMB561.9 million at the end of 2023, indicating a need for careful liquidity management [16] Q&A Session Summary Question: Insights on product traceability efforts - Management highlighted the importance of authentic, cost-effective, and healthy products, emphasizing personal exploration and experience in product traceability to build consumer trust [20] - Offline traceability activities are expected to enhance customer loyalty and drive sales on the platform [20]

Core Viewpoint - Yunji Inc. reported a significant decline in total revenues for Q2 2024, primarily due to soft consumer confidence and strategic adjustments in product selection and supplier optimization, while also focusing on enhancing its digital presence and offline initiatives to cater to the mature adult demographic [2][3][4]. Financial Performance - Total revenues for Q2 2024 were RMB106.0 million (US$14.6 million), down from RMB167.1 million in Q2 2023, representing a decrease of approximately 36.5% [2][4]. - Merchandise sales revenues were RMB83.0 million (US$11.4 million), compared to RMB131.2 million in the same period of 2023, a decline of about 36.7% [4]. - Marketplace business revenues decreased to RMB21.1 million (US$2.9 million) from RMB34.3 million, a drop of approximately 38.4% [4]. - Other revenues slightly increased to RMB1.9 million (US$0.3 million) from RMB1.6 million [4]. Cost and Expenses - Total cost of revenues decreased by 30.0% to RMB56.6 million (US$7.8 million), accounting for 53.4% of total revenues, down from 48.4% in Q2 2023 [5]. - Total operating expenses fell by 33.9% to RMB73.3 million (US$10.1 million) from RMB110.8 million in the same period of 2023 [5]. - Fulfillment expenses decreased by 30.9% to RMB20.7 million (US$2.8 million), while sales and marketing expenses dropped by 35.0% to RMB21.7 million (US$3.0 million) [6]. Profitability - Loss from operations was RMB23.1 million (US$3.2 million), compared to RMB11.8 million in Q2 2023 [8]. - Financial income, net was RMB10.9 million (US$1.5 million), a recovery from a financial loss of RMB12.7 million in the same period of 2023 [8]. - Net loss narrowed to RMB11.9 million (US$1.6 million) from RMB41.5 million in Q2 2023, indicating improved financial performance [8]. - Adjusted net loss (non-GAAP) was RMB9.7 million (US$1.3 million), compared to RMB39.8 million in the same period of 2023 [8]. Strategic Initiatives - The company is enhancing its focus on short videos and livestreaming while integrating offline initiatives to broaden its customer base and increase repeat purchases [3]. - Yunji is diversifying its product mix to better serve the mature adult demographic, reflecting its commitment to adaptability and sustainable growth [3]. - The company plans to construct a new headquarters in Hangzhou, with an expected total investment of approximately RMB600.0 million, funded through cash on hand and bank financing [30].

Core Viewpoint - Yunji Inc. plans to release its second quarter financial results on August 23, 2024, and will hold a conference call to discuss the earnings [1]. Group 1: Financial Results Announcement - The earnings release will be available on the Company's investor relations website [1]. - The conference call is scheduled for August 23, 2024, at 7:30 A.M. Eastern Time or 7:30 P.M. Beijing/Hong Kong Time [1]. Group 2: Conference Call Access - Listeners can access the call by dialing specific numbers for international, U.S., and China toll-free lines [2]. - A replay of the conference call will be available until August 30, 2024, with designated access codes [3]. Group 3: 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, 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 engagement [4].

Financial Data and Key Metrics Changes - Total revenues for Q1 2024 were RMB 128 million, down from RMB 179 million in the same period last year, primarily due to ongoing refinements in product range and supplier optimization [13] - Revenue from merchandise sales was RMB 102 million, while marketplace business revenue was RMB 24 million [13] - Gross margin remained solid at 49.4%, supported by customer loyalty and effective product creation strategies [13] - Net income was RMB 4 million compared to a net loss of RMB 23 million a year ago, while adjusted net income improved to RMB 3 million from an adjusted net loss of RMB 27 million [15] Business Line Data and Key Metrics Changes - Fulfillment expenses decreased to RMB 22 million from RMB 27 million, driven by lower warehousing and logistics costs [14] - Sales and marketing expenses fell to RMB 26 million from RMB 30 million, mainly due to a decline in member management fees [14] - Total operating expenses decreased to RMB 76 million from RMB 85 million in the same period of 2023 [14] Market Data and Key Metrics Changes - The first quarter is traditionally an off-peak season for e-commerce, but the company focused on refining operations to maintain growth margins [5] - The company is expanding its presence in offline communities and establishing wellness spaces to enhance its healthcare offerings [6] Company Strategy and Development Direction - The company aims to transition consumers from a reactive to a proactive approach to healthcare, emphasizing daily dietary enhancements [8] - Plans to enhance the vertical community service experience and deploy advanced AI applications to support health services [8] - The integration of short videos and live streaming is a key strategy to boost engagement and sales across various product categories [9] Management's Comments on Operating Environment and Future Outlook - Management believes that challenges in the industry also present opportunities, and they are leveraging their experience in social e-commerce to adapt to new trends [9] - The focus will be on enhancing efficiency and strengthening resilience to address future challenges and seize emerging opportunities [16] Other Important Information - The company is dedicated to improving cash flow management and optimizing inventory management protocols [12][15] - As of March 31, 2024, total liquidity assets were RMB 505 million, down from RMB 552 million at the end of 2023 [15] Q&A Session Summary Question: How does the company differentiate itself in short video and live streaming? - The company ensures that all products are cost-effective and does not rely on low-priced clearance items to attract traffic. It engages in product development from inception, providing a deeper understanding of the commodity chain [18] - The strategy is rooted in an ordinary people-centric approach, facilitating individual entrepreneurship and making content more accessible, which differentiates it from competitors [18]