STOCK TITAN

Yunji Announces Second Quarter 2024 Unaudited Financial Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Negative)
Tags

Yunji Inc. (NASDAQ: YJ) reported its Q2 2024 unaudited financial results. Total revenues decreased to RMB106.0 million (US$14.6 million) from RMB167.1 million in Q2 2023, due to soft consumer confidence and product selection refinement. The repeat purchase rate was 73.5%. The company focused on enhancing short videos, livestreaming, and offline initiatives to target the silver economy. Net loss narrowed to RMB11.9 million (US$1.6 million) from RMB41.5 million in Q2 2023. Adjusted net loss (non-GAAP) was RMB9.7 million (US$1.3 million). The company maintained a stable financial position while pursuing growth opportunities prudently.

Yunji Inc. (NASDAQ: YJ) ha riportato i risultati finanziari non auditati per il secondo trimestre del 2024. Le entrate totali sono diminuite a RMB106,0 milioni (US$14,6 milioni) rispetto ai RMB167,1 milioni nel secondo trimestre del 2023, a causa della bassa fiducia dei consumatori e di una selezione dei prodotti affinata. Il tasso di riacquisto è stato del 73,5%. L'azienda si è concentrata sul potenziamento dei video brevi, delle dirette streaming e delle iniziative offline per mirare all'economia della terza età. La perdita netta si è ridotta a RMB11,9 milioni (US$1,6 milioni) rispetto ai RMB41,5 milioni nel secondo trimestre del 2023. La perdita netta rettificata (non-GAAP) è stata di RMB9,7 milioni (US$1,3 milioni). L'azienda ha mantenuto una posizione finanziaria stabile mentre cercava opportunità di crescita in modo prudente.

Yunji Inc. (NASDAQ: YJ) reportó sus resultados financieros no auditados para el segundo trimestre de 2024. Los ingresos totales disminuyeron a RMB106,0 millones (US$14,6 millones) desde RMB167,1 millones en el segundo trimestre de 2023, debido a la baja confianza del consumidor y a la mejora en la selección de productos. La tasa de recompra fue del 73,5%. La compañía se centró en mejorar videos cortos, transmisiones en vivo e iniciativas fuera de línea para dirigirse a la economía de los mayores. La pérdida neta se redujo a RMB11,9 millones (US$1,6 millones) desde RMB41,5 millones en el segundo trimestre de 2023. La pérdida neta ajustada (no-GAAP) fue de RMB9,7 millones (US$1,3 millones). La empresa mantuvo una posición financiera estable mientras buscaba oportunidades de crecimiento de manera prudente.

윤지 주식회사(Yunji Inc.)(NASDAQ: YJ)는 2024년 2분기 비감사 재무 실적을 발표했습니다. 총 수익은 1억 6천만 위안 (1460만 달러)으로 감소했습니다, 2023년 2분기의 1억 6710만 위안에서 줄어든 것으로, 소비자 신뢰도 저조 및 제품 선택 조정이 원인입니다. 재구매율은 73.5%입니다. 회사는 실버 경제를 겨냥하여 짧은 동영상, 라이브 스트리밍 및 오프라인 이니셔티브를 강화하는 데 집중했습니다. 순손실은 1190만 위안 (160만 달러)으로 감소했습니다, 2023년 2분기의 4150만 위안에서 줄어든 수치입니다. 조정된 순손실(비 GAAP)은 970만 위안 (130만 달러)입니다. 회사는 성장 기회를 신중하게 추구하면서 안정적인 재무 상태를 유지하였습니다.

Yunji Inc. (NASDAQ: YJ) a publié ses résultats financiers non audités pour le deuxième trimestre 2024. Les revenus totaux ont diminué à 106,0 millions de RMB (14,6 millions de dollars) contre 167,1 millions de RMB au deuxième trimestre 2023, en raison d'une faible confiance des consommateurs et d'un raffinement de la sélection des produits. Le taux de réachat était de 73,5%. L'entreprise s'est concentrée sur l'amélioration des courtes vidéos, des diffusions en direct et des initiatives hors ligne pour cibler l'économie des seniors. La perte nette a été réduite à 11,9 millions de RMB (1,6 million de dollars) contre 41,5 millions de RMB au deuxième trimestre 2023. La perte nette ajustée (non-GAAP) était de 9,7 millions de RMB (1,3 million de dollars). L'entreprise a maintenu une position financière stable tout en poursuivant prudemment des opportunités de croissance.

Yunji Inc. (NASDAQ: YJ) hat seine nicht testierten Finanz Ergebnisse für das zweite Quartal 2024 bekannt gegeben. Der Gesamterlös fiel auf 106,0 Millionen RMB (14,6 Millionen USD), verglichen mit 167,1 Millionen RMB im zweiten Quartal 2023, bedingt durch eine schwache Verbrauchervertrauenslage und eine Optimierung der Produkt Auswahl. Die Wiederkaufrate betrug 73,5%. Das Unternehmen konzentrierte sich darauf, Kurzvideos, Livestreaming und Offline-Initiativen zu verstärken, um die Silberwirtschaft anzusprechen. Der Nettoverlust verringerte sich auf 11,9 Millionen RMB (1,6 Millionen USD), im Vergleich zu 41,5 Millionen RMB im zweiten Quartal 2023. Der angepasste Nettoverlust (Non-GAAP) betrug 9,7 Millionen RMB (1,3 Millionen USD). Das Unternehmen hielt eine stabile Finanzlage aufrecht, während es vorsichtig Wachstumschancen verfolgte.

Positive
  • Net loss narrowed significantly to RMB11.9 million from RMB41.5 million year-over-year
  • High repeat purchase rate of 73.5% in the twelve months ended June 30, 2024
  • Total operating expenses decreased by 33.9% year-over-year
  • Financial income improved to RMB10.9 million from a loss of RMB12.7 million in the same period last year
Negative
  • Total revenues declined 36.6% year-over-year to RMB106.0 million
  • Revenues from sales of merchandise decreased to RMB83.0 million from RMB131.2 million year-over-year
  • Marketplace business revenues fell to RMB21.1 million from RMB34.3 million year-over-year
  • Loss from operations increased to RMB23.1 million from RMB11.8 million in the same period last year

Insights

Yunji's Q2 2024 results paint a concerning picture. Total revenues declined significantly to RMB106.0 million (US$14.6 million), down from RMB167.1 million in Q2 2023. This 36.6% year-over-year drop is attributed to soft consumer confidence and the company's strategy to refine product selection, which has negatively impacted sales in the short term.

The company's cost-cutting efforts are evident, with total operating expenses decreasing by 33.9%. However, this wasn't enough to offset the revenue decline, resulting in an operating loss of RMB23.1 million (US$3.2 million). The net loss narrowed to RMB11.9 million (US$1.6 million), largely due to financial income from fair value changes in equity securities investments.

While the repeat purchase rate of 73.5% is commendable, the overall financial performance raises questions about Yunji's ability to maintain growth in a challenging market environment. The company's focus on the silver economy and offline initiatives may provide new opportunities, but investors should closely monitor whether these strategies can reverse the declining revenue trend.

Yunji's strategic shift towards the silver economy in China is a shrewd move, given the demographic trends. However, the 36.6% year-over-year revenue decline suggests that this transition is not without challenges. The company's focus on short videos, livestreaming and offline initiatives indicates an attempt to diversify its revenue streams and engage customers more effectively.

The 73.5% repeat purchase rate is a positive indicator of customer loyalty, but the overall revenue decline suggests issues with customer acquisition or average order value. Yunji's strategy to refine product selection and optimize suppliers may improve margins in the long term, but it's clearly impacting top-line growth now.

The e-commerce landscape in China remains highly competitive and Yunji's performance relative to peers should be closely monitored. The company's ability to successfully target the mature adult demographic while maintaining its existing customer base will be important for future growth. Investors should watch for signs of stabilization in revenue and improvements in customer acquisition metrics in the coming quarters.

HANGZHOU, China, Aug. 23, 2024 /PRNewswire/ -- Yunji Inc. ("Yunji" or the "Company") (NASDAQ: YJ), a leading membership-based social e-commerce platform, today announced its unaudited financial results for the second quarter ended June 30, 2024[1].

Second Quarter 2024 Highlights

  • Total revenues in the second quarter of 2024 were RMB106.0 million (US$14.6 million), compared with RMB167.1 million in the same period of 2023. The change was primarily due to soft consumer confidence and the Company's continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, which had a near-term impact on sales.
  • Repeat purchase rate[2] in the twelve months ended June 30, 2024 was 73.5%.

Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, "In the second quarter of 2024, we continued to enhance our efforts in short videos and livestreaming while also integrating offline initiatives alongside our digital presence. Recognizing the significant potential within the silver economy in China, we diversified our product mix and services to better serve the mature adult demographic. By complementing our online efforts with these offline initiatives and refining our product offerings, we aim to broaden our customer base and increase repeat purchases. This balanced approach reflects our commitment to adaptability and sustainable growth in a dynamic market environment."

"Our current financial position allows us to support our strategic initiatives. We regularly assess the profitability of both new and existing business lines, making thoughtful adjustments in response to market changes. This approach helps us maintain a stable financial position in a shifting business landscape. As we move forward, we will continue to pursue growth opportunities prudently while ensuring our financial stability," said Mr. Yeqing Cui, Senior Financial Director of Yunji.

Second Quarter 2024 Unaudited Financial Results

Total revenues were RMB106.0 million (US$14.6 million), compared with RMB167.1 million in the same period of 2023. This change was primarily due to soft consumer confidence and the Company's continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, which had a near-term impact on sales.

  • Revenues from sales of merchandise were RMB83.0 million (US$11.4 million), compared with RMB131.2 million in the same period of 2023.
  • Revenues from the marketplace business were RMB21.1 million (US$2.9 million), compared with RMB34.3 million in the same period of 2023.
  • Other revenues were RMB1.9 million (US$0.3 million), compared with RMB1.6 million in the same period of 2023.

Total cost of revenues decreased by 30.0% to RMB56.6 million (US$7.8 million), or 53.4% of total revenues, from RMB80.8 million, or 48.4% of total revenues, in the same period of 2023. The decrease was mainly attributable to the change in merchandise sales, for which revenues are recognized on a gross basis. Total cost of revenues was mainly comprised of the costs related to the sales of merchandise in the second quarter of 2024.

Total operating expenses decreased by 33.9% to RMB73.3million (US$10.1 million) from RMB110.8 million in the same period of 2023.

  • Fulfillment expenses decreased by 30.9% to RMB20.7 million (US$2.8 million), or 19.5% of total revenues, from RMB29.9 million, or 17.9% of total revenues, in the same period of 2023. The decrease was mainly due to (i) reduced warehousing and logistics expenses due to lower merchandise sales, and (ii) reduced personnel costs as a result of staffing structure refinements.
  • Sales and marketing expenses decreased by 35.0% to RMB21.7 million (US$3.0 million), or 20.5% of total revenues, from RMB33.4 million, or 20.0% of total revenues, in the same period of 2023. The decrease was mainly due to the reduction in member management fees.
  • Technology and content expenses decreased by 14.4% to RMB12.2 million (US$1.7 million), or 11.5% of total revenues, from RMB14.3 million, or 8.5% of total revenues, in the same period of 2023. The decrease was mainly due to (i) the reduction in personnel costs as a result of staffing structure refinements, and (ii) reduced server service fees.
  • General and administrative expenses decreased by 43.8% to RMB18.7 million (US$2.6 million), or 17.6% of total revenues, from RMB33.2 million, or 19.9% of total revenues, in the same period of 2023. The decrease was mainly due to (i) the reduction in the allowance for credit losses, and (ii) reduced personnel costs as a result of staffing structure refinements.

Loss from operations was RMB23.1 million (US$3.2 million), compared with RMB11.8 million in the same period of 2023.

Financial income, net was RMB10.9 million (US$1.5 million), compared with financial loss, net of RMB12.7 million in the same period of 2023, mainly due to an increase in the fair value changes of equity securities investments.

Net loss was RMB11.9 million (US$1.6 million), compared with RMB41.5 million in the same period of 2023.

Adjusted net loss (non-GAAP)[3] was RMB9.7 million (US$1.3 million), compared with RMB39.8 million in the same period of 2023.

Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.01, compared with RMB0.02 in the same period of 2023.

Use of Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses adjusted net loss as a supplemental measure to review and assess operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net loss as net loss excluding share-based compensation.

The Company presents adjusted net loss because it is used by management to evaluate operating performance and formulate business plans. Adjusted net loss enables management to assess operating performance without considering the impact of share-based compensation recorded under ASC 718, "Compensation-Stock Compensation." The Company also believes that the use of this non-GAAP measure facilitates investors' assessment of operating performance.

This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net loss is that it does not reflect all items of income and expense that affect the Company's operations. Share-based compensation has been and may continue to be incurred in Yunji's business and is not reflected in the presentation of adjusted net loss. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited.

The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Yunji encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measures, please see the table captioned "Reconciliation of Non-GAAP Measures to the Most Directly Comparable Financial Measures" set forth at the end of this press release. 

Conference Call

The Company will host a conference call on Friday, August 23, 2024, at 7:30 A.M. Eastern Time or 7:30 P.M. Beijing/Hong Kong Time to discuss its earnings. Listeners may access the call by dialing the following numbers:

International:

1-412-902-4272

United States Toll Free:

1-888-346-8982

Mainland China Toll Free:  

4001-201203

Hong Kong Toll Free:     

800-905945

Conference ID: 

Yunji Inc.

A telephone replay of the call will be available after the conclusion of the conference call for one week.

Dial-in numbers for the replay are as follows:

United States Toll Free

1-877-344-7529

International

1-412-317-0088

Replay Access Code

3316837

Safe Harbor Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue" or other similar expressions. Among other things, the quotations from management in this announcement, as well as Yunji's strategic and operational plans, contain forward-looking statements. Yunji may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Yunji's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yunji's growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in China's e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of China's e-commerce market; PRC governmental policies and regulations relating to Yunji's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Yunji's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Yunji undertakes no obligation to update any forward-looking statement, except as required under applicable law.

About Yunji Inc.

Yunji Inc. is a leading social e-commerce platform in China that has pioneered a unique, membership-based model to leverage the power of social interactions. The Company's e-commerce platform offers high-quality products at attractive prices across a wide variety of categories catering to the day-to-day needs of Chinese consumers. In addition, the Company uses advanced technologies including big data and artificial intelligence to optimize user experience and incentivize members to promote the platform as well as share products with their social contacts. Through deliberate product curation, centralized merchandise sourcing, and efficient supply chain management, Yunji has established itself as a trustworthy e-commerce platform with high-quality products and exclusive membership benefits, including discounted prices.

For more information, please visit https://investor.yunjiglobal.com/

Investor Relations Contact

Yunji Inc.
Investor Relations
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957

ICR, LLC
Robin Yang
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957

 

 

 

YUNJI INC.


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share and per share data, unless otherwise noted)




As of



December 31,

2023


June 30,

2024



RMB


RMB


US$

ASSETS







Current Assets







Cash and cash equivalents


517,542


299,255


41,179

Restricted cash


27,169


25,253


3,475

Short-term investments


7,195


-


-

Accounts receivable, net (Allowance for
credit losses of RMB35,159 and
RMB34,660, respectively)


64,312


64,663


8,898

Advance to suppliers


14,058


8,825


1,214

Inventories, net


42,716


31,696


4,362

Amounts due from related parties


1,361


861


118

Prepaid expenses and other current assets[4]
(Allowance for credit losses of
RMB13,017 and RMB19,185,
respectively)


134,247


150,578


20,720








Total current assets


808,600


581,131


79,966








Non-current assets







Property and equipment, net


175,451


174,176


23,967

Long-term investments


364,159


381,225


52,458

Operating lease right-of-use assets, net


16,507


15,925


2,191

Other non-current assets[5] (Allowance for
credit losses of RMB22,213 and
RMB13,395, respectively)


189,067


338,457


46,573








Total non-current assets


745,184


909,783


125,189








Total assets


1,553,784


1,490,914


205,155

 

 

 

YUNJI INC.


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 



As of



December 31,

2023


June 30,

2024



RMB


RMB


US$

LIABILITIES AND SHAREHOLDERS'
EQUITY

 







Current Liabilities







Accounts payable


96,782


79,810


10,982

Deferred revenue


9,412


9,388


1,292

Incentive payables to members[6]


124,889


86,726


11,934

Member management fees payable


4,373


2,861


394

Other payable and accrued liabilities


109,200


104,827


14,422

Amounts due to related parties


3,535


2,976


410

Operating lease liabilities - current


3,376


5,773


794








Total current liabilities


351,567


292,361


40,228








Non-current liabilities







Operating lease liabilities


11,122


9,967


1,371








Total non-current liabilities


11,122


9,967


1,371








Total Liabilities


362,689


302,328


41,599

 

 

 

YUNJI INC.


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except for share and per share data, unless otherwise noted)




As of



December 31,

2023


June 30,

2024



RMB


RMB


US$








Shareholders' equity







Ordinary shares


70


70


10

Less: Treasury stock


(116,108)


(116,045)


(15,968)

Additional paid-in capital


7,328,680


7,329,968


1,008,637

Statutory reserve


16,254


16,254


2,237

Accumulated other comprehensive income


85,291


89,412


12,304

Accumulated deficit


(6,123,971)


(6,131,951)


(843,785)

Total Yunji Inc. shareholders' equity


1,190,216


1,187,708


163,435

Non-controlling interests


879


878


121

Total shareholders' equity


1,191,095


1,188,586


163,556

Total liabilities and shareholders' equity


1,553,784


1,490,914


205,155

 

 

 

YUNJI INC.


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 (All amounts in thousands, except for share and per share data, unless otherwise noted)





For the Three Months Ended


For the Six Months Ended



June 30,

2023


June 30,

2024


June 30,

2023


June 30,

2024



RMB


RMB


US$


RMB


RMB


US$

Revenues:













 Sales of merchandise, net


131,231


82,979


11,418


274,189


185,025


25,460

 Marketplace revenue


34,269


21,110


2,905


67,226


45,167


6,215

 Other revenues


1,629


1,890


260


4,458


3,645


502

Total revenues


167,129


105,979


14,583


345,873


233,837


32,177

Operating cost and expenses:













 Cost of revenues


(80,831)


(56,566)


(7,784)


(174,293)


(121,311)


(16,693)

 Fulfilment


(29,888)


(20,660)


(2,843)


(57,006)


(42,568)


(5,857)

 Sales and marketing


(33,368)


(21,680)


(2,983)


(62,953)


(47,488)


(6,535)

 Technology and content


(14,253)


(12,205)


(1,680)


(27,605)


(25,531)


(3,513)

 General and administrative


(33,244)


(18,686)


(2,571)


(48,416)


(33,521)


(4,613)

Total operating cost and expenses


(191,584)


(129,797)


(17,861)


(370,273)


(270,419)


(37,211)

 Other operating income


12,668


729


100


13,577


4,161


573

Loss from operations


(11,787)


(23,089)


(3,178)


(10,823)


(32,421)


(4,461)

 Financial (loss)/income, net


(12,723)


10,928


1,504


(34,915)


25,593


3,522

 Foreign exchange (loss)/income, net


(9,741)


2,571


354


(7,378)


2,330


321

 Other non-operating (loss)/income, net


(3,550)


118


16


(3,064)


118


16

Loss before income tax expense, and
equity in loss of affiliates, net of tax


(37,801)


(9,472)


(1,304)


(56,180)


(4,380)


(602)

 Income tax expense


(2,328)


(962)


(132)


(5,407)


(1,293)


(178)

 Equity in loss of affiliates, net of tax


(1,411)


(1,463)


(201)


(2,886)


(2,359)


(325)

Net loss


(41,540)


(11,897)


(1,637)


(64,473)


(8,032)


(1,105)

Less: net loss attributable to non-
controlling interests shareholders


(1)


(3)


-


(1)


(1)


-

Net loss attributable to YUNJI INC.


(41,539)


(11,894)


(1,637)


(64,472)


(8,031)


(1,105)

 

 

 

YUNJI INC.


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED)

 (All amounts in thousands, except for share and per share data, unless otherwise noted)

 



For the Three Months Ended


For the Six Months Ended



June 30,

2023


June 30,

2024


June 30,

2023


June 30,

2024



RMB


RMB


US$


RMB


RMB


US$

Net loss attributable to ordinary
shareholders


(41,539)


(11,894)


(1,637)


(64,472)


(8,031)


(1,105)

Net loss


(41,540)


(11,897)


(1,637)


(64,473)


(8,032)


(1,105)

Other comprehensive income













  Foreign currency translation
  adjustment


40,983


2,706


372


29,056


4,121


567

Total comprehensive loss


(557)


(9,191)


(1,265)


(35,417)


(3,911)


(538)

 Less: total comprehensive loss
 attributable to non-controlling
 interests shareholders


(1)


(3)


-


(1)


(1)


-

Total comprehensive loss
attributable to YUNJI INC.


(556)


(9,188)


(1,265)


(35,416)


(3,910)


(538)

Net loss attributable to ordinary
shareholders


(41,539)


(11,894)


(1,637)


(64,472)


(8,031)


(1,105)

Weighted average number of
ordinary shares used in computing
net loss per share, basic and diluted


1,966,698,843


1,967,086,032


1,967,086,032


1,975,321,887


1,967,050,455


1,967,050,455

Net loss per share attributable to
ordinary shareholders













 Basic


(0.02)


(0.01)


-


(0.03)


-


-

 Diluted


(0.02)


(0.01)


-


(0.03)


-


-

 

 

 

YUNJI INC.


NOTES TO UNAUDITED FINANCIAL INFORMATION

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 



For the Three Months Ended


For the Six Months Ended



June 30,

2023


June 30,

2024


June 30,

2023


June 30,

2024



RMB


RMB


US$


RMB


RMB


US$

Share-based compensation expenses included in:













  Technology and content


682


403


55


543


823


113

  General and administrative


778


1,696


233


63


448


62

  Fulfillment


173


154


21


(2,647)


36


5

  Sales and marketing


62


(19)


(2)


(569)


44


6

Total


1,695


2,234


307


(2,610)


1,351


186

 

 

 

YUNJI INC.


RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE

FINANCIAL MEASURES

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 



For the Three Months Ended


For the Six Months Ended



June 30,

2023


June 30,

2024


June 30,

2023


June 30,

2024



RMB


RMB


US$


RMB


RMB


US$

Reconciliation of Net Loss to Adjusted Net Loss:













  Net loss


(41,540)


(11,897)


(1,637)


(64,473)


(8,032)


(1,105)

  Add: Share-based compensation


1,695


2,234


307


(2,610)


1,351


186

  Adjusted net loss


(39,845)


(9,663)


(1,330)


(67,083)


(6,681)


(919)

 

 

1.       This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2672 to US$1.00, the exchange rate in effect as of June 28, 2024 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

2.       "Repeat purchase rate" in a given period is calculated as the number of transacting members who purchased not less than twice divided by the total number of transacting members during such period. "Transacting member" in a given period refers to a member who successfully promotes Yunji's products to generate at least one order or places at least one order on Yunji's platform, regardless of whether any product in such order is ultimately sold or delivered or whether any product in such order is returned. "Repeat purchase rate" only considers orders placed through the Company's app. Repeat purchases made through the Company's mini-programs are excluded from the calculation.

3.       Adjusted net loss is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expense. See "Reconciliation of Non-GAAP Measures to the Most Directly Comparable Financial Measures" set forth at the end of this press release.

4.       As of June 30, 2024, short-term loan receivables of amount RMB104,618 were included in the prepaid expenses and other current assets balance, which represent the principal and interest to be collected on loans provided by the Group to third-party companies.

5.       In June 2024, the Company won the bid for a parcel of land located in Xiaoshan District, Hangzhou, China, covering approximately 10 thousand square meters (the "Hangzhou Land Parcel") and entered into an agreement with the local government to acquire the land use right of the Hangzhou Land Parcel for an aggregate consideration of approximately RMB171.5 million. The prepayment for land use right was recorded in other non-current assets. The Company intends to construct a new office building on the Hangzhou Land Parcel to use it as its new headquarters and also lease offices to external parties. The total amount for the land acquisition and office building construction is expected to be approximately RMB600.0 million. The Company intends to fund the land acquisition and building construction through cash on hand and bank financing.

6.       As of June 30, 2024, the decrease in incentive payables was mainly due to derecognition of long-aged payables to inactive members.

7.       As of June 30, 2024, the Group, as one of the five co-defendants, was involved in an on-going legal proceeding that arose in the ordinary course of business (the "Case"). The plaintiff sought monetary damages jointly and severally from all co-defendants. As of the date of this earnings release, the Case is still under the appeal trial process and subject to final judgment by the Guangzhou Intermediate People's Court, and the amount involved is approximately RMB23.1 million. Based on the currently available information, management believes that the claims by the plaintiff have no merit and the Group has valid defence and will defend vigorously in the Case. Accordingly, the Group has not made accrual for the Case as of June 30, 2024.

 

 

Cision View original content:https://www.prnewswire.com/news-releases/yunji-announces-second-quarter-2024-unaudited-financial-results-302229380.html

SOURCE Yunji Inc.

FAQ

What were Yunji's (YJ) total revenues in Q2 2024?

Yunji's total revenues in Q2 2024 were RMB106.0 million (US$14.6 million), compared to RMB167.1 million in Q2 2023.

What was Yunji's (YJ) net loss in Q2 2024?

Yunji reported a net loss of RMB11.9 million (US$1.6 million) in Q2 2024, compared to a net loss of RMB41.5 million in Q2 2023.

What was Yunji's (YJ) repeat purchase rate in the twelve months ended June 30, 2024?

Yunji's repeat purchase rate in the twelve months ended June 30, 2024 was 73.5%.

How did Yunji's (YJ) operating expenses change in Q2 2024?

Yunji's total operating expenses decreased by 33.9% to RMB73.3 million (US$10.1 million) in Q2 2024, compared to RMB110.8 million in Q2 2023.

Yunji Inc. American Depository Shares

NASDAQ:YJ

YJ Rankings

YJ Latest News

YJ Stock Data

8.55M
1.02B
1.91%
1.7%
0.32%
Internet Retail
Consumer Cyclical
Link
United States of America
Hangzhou