Yunji(US:YJ)2022-03-17 19:24Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was CNY 471 million, a significant decrease from CNY 1,327 million in the same period last year [15] - Operating income improved to CNY 4 million compared to an operating loss of CNY 20 million a year ago [14] - Net income reached CNY 58 million, a turnaround from a net loss of CNY 77 million in the previous year [18] - Gross margin increased to 40% from 26% year-over-year, attributed to the introduction of more private label products [15] Business Line Data and Key Metrics Changes - Revenue from merchandise sales was CNY 389 million, while marketplace business revenue was CNY 74 million [15] - The private label strategy has shown substantial progress, with a high repeat purchase rate of 80% over the past year [14] Market Data and Key Metrics Changes - The company has focused on expanding its product offerings in food, health care, and cosmetics, targeting quality and cost-effectiveness [23] - The economic downturn has influenced consumer behavior, but the company believes there will be a growing demand for upgraded consumption in the next decade [23] Company Strategy and Development Direction - The company has launched the Yunji 99 special sales portal, featuring a curated selection of 99 cost-effective products daily [5] - A strong emphasis on private label products is seen as crucial for achieving healthy profitability, with plans to accelerate the development of new branded food products [7][10] - The company aims to integrate its supply chain with major platforms to enhance brand awareness and competitiveness [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the economic downturn but remains confident in the company's growth prospects [19] - The focus will continue to be on quality product curation and profitability, with a long-term strategy to meet consumer needs [19] Other Important Information - The company announced a share repurchase program of up to USD 20 million over the next six months [19] - As of December 31, 2021, the company had CNY 1 billion in cash and cash equivalents, with no long-term debt [18] Q&A Session Summary Question: Impact of economic downturn on Yunji and future strategies - Management stated that they are working with advanced manufacturing companies to explore new quality products in food, health care, and cosmetics, aiming to meet the demand of Chinese families despite economic challenges [23]