Yunji(YJ)2024-11-22 18:29Financial 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]