Financial Performance - Total revenues for Q3 2022 were RMB238.9 million (US$33.6 million), a decrease of 45.4% from RMB437.9 million in Q3 2021[2] - Revenues from merchandise sales were RMB196.9 million (US$27.7 million), down from RMB365.5 million in the same period of 2021[4] - Net loss for Q3 2022 was RMB38.2 million (US$5.4 million), compared to net income of RMB61.4 million in Q3 2021[7] - Adjusted net loss (non-GAAP) was RMB29.6 million (US$4.2 million), compared to adjusted net income of RMB76.3 million in the same period of 2021[7] - For the three months ended September 30, 2022, the company reported a net loss of RMB 38,246 million compared to a net income of RMB 61,354 million for the same period in 2021[31] - The company experienced a significant decline in net income for the nine months ended September 30, 2022, reporting a loss of RMB 100,173 million compared to a net income of RMB 74,340 million for the same period in 2021[31] - The adjusted net loss for the nine months ended September 30, 2022, was RMB 77,285 million, compared to an adjusted net income of RMB 117,190 million in the previous year[31] Cost Management - Total cost of revenues decreased by 51.4% to RMB120.9 million (US$17.0 million), representing 50.6% of total revenues[5] - Total operating expenses decreased by 28.5% to RMB138.5 million (US$19.5 million) from RMB193.8 million in Q3 2021[5] - Operating expenses for the three months ended September 30, 2022, were RMB 259,456, a decrease of 41.3% from RMB 442,371 for the same period in 2021[24] - The company incurred share-based compensation expenses of RMB 8,687 for the nine months ended September 30, 2022, down from RMB 42,850 for the same period in 2021[29] - The share-based compensation expense for the three months ended September 30, 2022, was RMB 8,687 million, a decrease from RMB 14,908 million in the same period of 2021[31] Profitability Metrics - Gross margin improved to 49.4% in Q3 2022, compared to 43.2% in Q3 2021[3] - The company reported a gross margin of 49.5% for the three months ended September 30, 2022, compared to 43.5% for the same period in 2021[24] Balance Sheet - Total current liabilities decreased to RMB 578,896 as of September 30, 2022, from RMB 865,760 as of December 31, 2021, representing a reduction of 33.2%[20] - Total shareholders' equity decreased to RMB 1,424,552 as of September 30, 2022, from RMB 1,478,515 as of December 31, 2021, a decline of 3.6%[22] - The total liabilities decreased to RMB 580,114 as of September 30, 2022, from RMB 871,455 as of December 31, 2021, a decrease of 33.4%[20] Customer Retention - Repeat purchase rate for the twelve months ended September 30, 2022 was 78.7%[2] - The company reported a repeat purchase rate based on the number of transacting members who made at least two purchases during the period, indicating customer retention metrics[31] Operational Strategy - The company aims to maintain a healthy balance sheet by focusing on cost controls and cash flow management[3] - The company is enhancing its platform infrastructure and optimizing sales channels through big data analysis[3] - The company continues to focus on improving its operational efficiency and exploring new market opportunities despite the current financial challenges[31] Market Conditions - The financial results reflect the impact of market conditions and operational challenges faced by the company during the reporting period[31] - The translation of RMB amounts into U.S. dollars was made at an exchange rate of RMB 7.1135 to US$1.00 as of September 30, 2022[31]
Yunji(YJ) - 2022 Q3 - Quarterly Report