YJ

This article first appeared on GuruFocus. Release Date: August 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Gross margin remained resilient at approximately 41% despite revenue decline. Net loss narrowed significantly to RMB72.4 million from RMB100.7 million year-over-year. Private label products now account for 56% of self-operated merchandise sales, supporting higher margins. Successful product launches like Polygonum tea and SUYE Skincare Condensing Essence Oil drove growth. Supply chain traceability events boosted sales, with birch sap sales up 128% year-over-year. Operating expenses reduced by 38.8% year-over-year, reflecting strong cost discipline. Cash position improved to RMB242.1 million from RMB216.1 million at end of 2025. Total revenue declined sharply to RMB96.3 million from RMB158.3 million year-over-year. Revenue decline driven by softer consumer spending and proactive exit of third-party merchants. Net loss remains substantial at RMB72.4 million, indicating ongoing profitability challenges. Market environment remains challenging, with no immediate recovery expected. Fulfillment, sales, and technology expenses decreased partly due to reduced scale, not just efficiency. General and administrative expenses increased due to impairment of property and equipment. Revenue from marketplace business declined, reflecting reduced merchant activity. Warning! GuruFocus has detected 8 Warning Signs with YJ. Is YJ fairly valued? Test your thesis with our free DCF calculator. Q: What were the key financial highlights for the first half of 2026, and how did the company's strategic adjustments impact revenue and profitability? A: Shanglue Xiao, Chairman and CEO, reported that total revenue for the first half of 2026 was RMB96.3 million, down from RMB158.3 million in the prior year period. This decline was a direct result of proactive structural adjustments, including discontinuing relationships with third-party merchants that did not meet enhanced product standards. Despite the revenue dip, gross margin remained resilient at approximately 41%, and net loss narrowed significantly to RMB72.4 million from RMB100.7 million, reflecting disciplined cost management and a strategic shift toward high-margin private label products. Q: How is the company's product strategy evolving, particularly regarding private label and organic health offerings? A: Shanglue Xiao explained that self-operated merchandise now accounts for approximately 70% of total sales, with private label products making up 56% of that. The company is focusing on "food medicine homology" products within its Organic Health segment, with Polygonum tea, launched in Q4 2025, becoming a key growth driver. This product validated the company's growth model and demonstrated long-term market potential in China's wellness market. Q: Can you elaborate on the performance of the company's supply chain traceability initiatives and their impact on sales? A: Shanglue Xiao highlighted that approximately 30 traceability events were conducted in the first half of 2026, which strengthened user trust and drove strong sales conversion. For example, a traceability event for Baiyue Shan birch sap on April 13 drove first-half sales up 128% year-over-year and 146% compared to the second half of 2025. Similarly, a wolfberry puree event on June 17 boosted sales by 13% year-over-year and 366% sequentially, confirming the effectiveness of this experiential strategy. Q: What were the main drivers behind the significant reduction in operating expenses? A: Nan Song, Senior Financial Director, detailed that total operating expenses decreased by 38.8% to RMB109.7 million from RMB139.4 million. This was driven by reductions across nearly every category: fulfillment expenses fell to RMB10.3 million due to lower warehousing and logistics costs; sales and marketing expenses dropped to RMB39.5 million from reduced member management fees; and general and administrative expenses decreased to RMB47.5 million, primarily due to a reduction in allowance for credit loss on third-party loan receivables. Q: How is the company's liquidity position, and what is the outlook for future profitability? A: Nan Song confirmed that as of June 30, 2026, the company held RMB242.1 million in cash and cash equivalents, up from RMB216.1 million at the end of 2025, providing sufficient liquidity for operations. Looking forward, the company remains focused on improving operating margins by channeling resources into high-margin, high-repurchase items and maintaining cost discipline, with a clear path toward improved profitability. Q: What is the performance of the Beauty segment, particularly the SUYE brand? A: Shanglue Xiao noted that the Beauty segment remained stable, with sales broadly flat year-over-year. The SUYE brand, known for high-value, affordable skincare, aligned well with increasingly rational consumer trends. Notably, the SUYE Skincare Condensing Essence Oil, launched in H2 2025, achieved 29% sequential sales growth in the first half of 2026, demonstrating strong consumer acceptance. Q: How is the company balancing the Organic Food and Organic Health segments to drive customer acquisition? A: Shanglue Xiao explained that the Organic Food segment integrates organic philosophy into daily meals, particularly breakfast, creating a high-frequency customer acquisition channel. This complements the Organic Health segment, which focuses on lower-frequency, higher-value wellness products. Together, they form a balanced portfolio that addresses both short-term and long-term consumption cycles, supporting stable customer retention. Q: What were the specific revenue breakdowns between merchandise sales and marketplace business? A: Nan Song detailed that revenues from sales of merchandise were RMB82.4 million, while marketplace business revenues were RMB13.7 million. The overall revenue decline was driven by softer consumer spending in China's macro environment, combined with the company's deliberate choice to exit certain product categories that did not align with its organic health philosophy, which was an anticipated impact of the strategic pivot. Q: How did the company's net loss per share change, and what were the adjusted figures? A: Nan Song reported that basic and diluted net loss per share attributable to ordinary shareholders narrowed to RMB0.04 from RMB0.05 in the same period of 2025. Adjusted net loss was RMB72.3 million, compared with RMB100.5 million a year ago, reflecting the company's successful expense discipline and focus on operational efficiency. Q: What is the company's long-term strategic vision despite the challenging market environment? A: Shanglue Xiao reiterated that Yunji remains committed to its positioning as a leader in organic living, with a dual-engine strategy focused on product and experience. The company will continue to refine its product metrics, expand food medicine homology offerings, and invest in differentiated experiential offerings to build user trust and a durable brand moat. The ultimate goal is to provide better organic health living solutions for families across China while balancing growth and profitability for long-term sustainable development. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

HANGZHOU, China, Aug. 20, 2026 /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 half year ended June 30, 2026[1]. First Half 2026 Highlights Total revenues in the first half of 2026 were RMB96.3 million (US$14.2 million), compared with RMB158.3 million in the same period of 2025. The change was primarily due to soft consumer spending, together with the Company's continued efforts to upgrade its platform role, refine its focus on private label products and optimize its selection of suppliers and merchants. Repeat purchase rate[2] in the twelve months ended June 30, 2026 was 69.15%. Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, "In the first half of 2026, we remained firmly committed to our strategic positioning as a leader in organic healthy living, advancing our dual-engine strategy centered on products and user experience even as the consumer environment in China stayed challenging. Our 12-month repeat purchase rate of 69.15% reflects the continued strength of our member relationships, and validates our decision to discontinue relationships with certain third-party merchants whose offerings did not meet our enhanced product standards. While this may have affected near-term revenue, it further sharpened our merchandise mix in support of our private label and organic health priorities. We remain confident in our long-term strategy and our path toward improved operating efficiency and profitability." "Even as we navigated a softer market environment in the first half of 2026, our solid financial position enabled us to maintain discipline over our controllable costs, with net loss narrowing to RMB72.4 million from RMB100.7 million in the same period of 2025. As of June 30, 2026, we maintained a solid liquidity position of RMB242.1 million in cash and cash equivalents, restricted cash, and short-term investments, and we remain focused on improving our operating margin as we work toward sustainable long-term profitability," said Ms. Nan Song, Senior Financial Director of Yunji. First Half 2026 Unaudited Financial Results Total revenues were RMB96.3 million (US$14.2 million), compared with RMB158.3 million in the same period of 2025. The change was primarily due to soft consumer spending, together with the Company's continued efforts to upgrade its platform role, refine its focus on private label products and its selection of suppliers and merchants. Revenues from sales of merchandise were RMB82.5 million (US$12.2 million), compared with RMB131.7 million in the same period of 2025. Revenues from the marketplace business were RMB13.7 million (US$2.0 million), compared with RMB24.5 million in the same period of 2025. Other revenues were RMB0.1 million (US$0.02 million), compared with RMB2.1 million in the same period of 2025. Total cost of revenues decreased by 31.9% to RMB56.8 million (US$8.4 million), or 59.0% of total revenues, from RMB83.5 million, or 52.7% of total revenues, in the same period of 2025. Total cost of revenues, which mainly comprises the costs related to the sales of merchandise, decreased in the first half of 2026. Our cost of revenues as a percentage of total revenues increased in the given period, as we derecognized less incentive payables to inactive members[3] , which carries no associated cost of revenue, compared with the same period of 2025. Revenues and cost of revenues are recognized on a gross basis. Total operating expenses decreased by 38.8% to RMB109.7 million (US$16.2 million) from RMB179.4 million in the same period of 2025. Fulfilment expenses decreased by 49.8% to RMB10.3 million (US$1.5 million), or 10.7% of total revenues, from RMB20.6 million, or 13.0% of total revenues, in the same period of 2025. The decrease was primarily 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 21.2% to RMB39.5 million (US$5.8 million), or 41.0% of total revenues, from RMB50.1 million, or 31.6% of total revenues, in the same period of 2025. The decrease was primarily due to (i) a decrease in member management fees, and (ii) reduced business promotion expenses. Technology and content expenses decreased by 19.3% to RMB12.4 million (US$1.8 million), or 12.8% of total revenues, from RMB15.3 million, or 9.7% of total revenues, in the same period of 2025. The decrease was primarily due to the reduction in related personnel costs as a result of staffing structure refinements. General and administrative expenses decreased by 49.1% to RMB47.5 million (US$7.1 million), or 49.4% of total revenues, from RMB93.4 million, or 59.0% of total revenues, in the same period of 2025. The decrease was primarily due to a reduction in the allowance for credit losses, partially offset by an impairment charge related to property and equipment. Loss from operations was RMB69.4 million (US$10.2 million), compared with RMB100.4 million in the same period of 2025. Financial loss, net was RMB11.0 million (US$1.6 million), compared with financial income, net of RMB3.9 million in the same period of 2025, primarily due to a decrease in the fair value changes of equity securities investments. Net loss was RMB72.4 million (US$10.7 million), compared with RMB100.7 million in the same period of 2025. Adjusted net loss (non-GAAP)[4] was RMB72.3 million (US$10.7 million), compared with RMB100.5 million in the same period of 2025. Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.04, compared with RMB0.05 in the same period of 2025. 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 Thursday, August 20, 2026, 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: 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: 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 RelationsEmail: [email protected]: +1 (646) 224-6957 ICR, LLCRobin YangEmail: [email protected]: +1 (646) 224-6957 View original content:https://www.prnewswire.com/news-releases/yunji-announces-first-half-2026-unaudited-financial-results-302856228.html

HANGZHOU, China, March 27, 2026 /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 half and fiscal year ended December 31, 20251. Second Half 2025 Highlights Total revenues in the second half of 2025 were RMB158.7 million (US$22.7 million), compared with RMB183.8 million in the same period of 2024. The change was primarily due to the Company's continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, together with a deliberate scale-back of the marketplace business. Repeat purchase rate2 in the twelve months ended December 31, 2025 was 69.7%. Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, "In the second half of 2025, we continued to demonstrate the resilience of our strategic transformation centered on becoming a leader in organic healthy living, while maintaining our industry-leading 12-month repurchase rate of 69.7%. This performance reflects the success of our strategy of offering curated premium products, including organic health foods aligned with China's national health strategy, while building a differentiated experiential ecosystem that strengthens customer trust through supply chain traceability and wellness services. As we enter 2026, we will continue developing health private labels and steadily accelerating our transformation from a traditional e-commerce platform to a private label–led model. We will balance multi-channel customer acquisition with our path toward profitability to create greater value for our members." "During the second half of 2025, we delivered improvement on our path to profitability, with net loss narrowing to RMB32.6 million from RMB115.1 million in the same period of 2024. This improvement was driven by disciplined cost management and our continued focus on product curation and operational efficiency. As we enter 2026, we remain committed to our strategic priorities of margin improvement and profitability, supported by our stable liquidity position and continued focus on resource optimization and profitable growth." said Ms. Nan Song, Senior Financial Director of Yunji. Second Half 2025 Unaudited Financial Results Total revenues were RMB158.7 million (US$22.7 million), compared with RMB183.8 million in the same period of 2024. This change was primarily due to the Company's continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, together with a deliberate scale-back of the marketplace business. Revenues from sales of merchandise were RMB136.4 million (US$19.5 million), compared with RMB145.5 million in the same period of 2024. This change was primarily due to a decrease in revenue from derecognition of incentive payables to inactive members as the number of inactive members3 declined, partially offset by a slight increase in merchandise sales resulting from proactive membership initiatives. Revenues from the marketplace business were RMB22.1 million (US$3.2 million), compared with RMB34.3 million in the same period of 2024. This change was primarily due to the Company's strategic decision to focus on private label products and deliberately scale back the marketplace business. Other revenues were RMB0.2 million (US$0.02 million), compared with RMB4.0 million in the same period of 2024. Total cost of revenues increased by 3.0% to RMB92.7 million (US$13.3 million), or 58.4% of total revenues, from RMB90.0 million, or 49.0% of total revenues, in the same period of 2024. Total cost of revenues primarily comprises costs related to sales of merchandise. The increase was primarily driven by higher merchandise sales. Revenues and related costs from merchandise sales are recognized on a gross basis. Total operating expenses decreased by 43.8% to RMB112.4 million (US$16.1 million) from RMB200.1 million in the same period of 2024. Fulfillment expenses decreased by 60.2% to RMB13.3 million (US$1.9 million), or 8.4% of total revenues, from RMB33.6 million, or 18.3% of total revenues, in the same period of 2024. The decrease was primarily due to reduced personnel costs as a result of ongoing optimization in staffing allocation. Sales and marketing expenses increased by 6.4% to RMB52.6 million (US$7.5 million), or 33.2% of total revenues, from RMB49.5 million, or 26.9% of total revenues, in the same period of 2024. The increase was primarily due to (i) an increase in personnel costs, as a result of a shift in resource allocation from online traffic acquisition towards offline and private-domain initiatives, and (ii) an increase in depreciation and amortization. Technology and content expenses decreased by 35.5% to RMB13.0 million (US$1.9 million), or 8.2% of total revenues, from RMB20.1 million, or 10.9% of total revenues, in the same period of 2024. The decrease was primarily due to the reduction in personnel costs as a result of staffing structure refinements. General and administrative expenses decreased by 65.5% to RMB33.5 million (US$4.8 million), or 21.1% of total revenues, from RMB96.9 million, or 52.7% of total revenues, in the same period of 2024. The decrease was primarily due to (i) a decrease in an impairment of long-lived assets other than goodwill, and in the allowance for credit losses, and (ii) a reduction in personnel costs as a result of improved staffing allocation. Loss from operations was RMB43.0 million (US$6.2 million), compared with RMB103.9 million in the same period of 2024. Financial income, net was RMB5.5 million (US$0.8 million), compared with financial expense, net of RMB8.3 million in the same period of 2024, primarily due to an increase in the fair value changes of equity securities investments. Net loss was RMB32.6 million (US$4.7 million), compared with RMB115.1 million in the same period of 2024. Adjusted net loss (non-GAAP)4 was RMB32.5million (US$4.6 million), compared with RMB114.0 million in the same period of 2024. Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.02, compared with RMB0.06 in the same period of 2024. Fiscal Year 2025 Unaudited Financial Results Total revenues were RMB317.0 million (US$45.3 million), compared with RMB417.7 million in the full year of 2024. The change was primarily due to the same factors that led to the half-year change. Revenues from sales of merchandise were RMB268.1 million (US$38.3 million), compared with RMB330.5 million in the full year of 2024. Revenues from the marketplace business were RMB46.6 million (US$6.7 million), compared with RMB79.5 million in the full year of 2024. Other revenues were RMB2.3 million (US$0.3 million), compared with RMB7.7 million in the full year of 2024. Total cost of revenues decreased by 16.6% to RMB176.2 million (US$25.2 million) from RMB211.3 million in the full year of 2024. Total cost of revenues primarily comprises costs related to sales of merchandise. The decrease was primarily attributable to the change in merchandise sales, for which revenues and cost of revenues are recognized on a gross basis. Total operating expenses were RMB291.8 million (US$41.7 million), compared with RMB349.2 million in the full year of 2024. Fulfillment expenses decreased by 55.5% to RMB33.9 million (US$4.9 million), or 10.7% of total revenues, from RMB76.1 million, or 18.2% of total revenues, in the full year of 2024. The decrease was primarily due to the same factors that led to the half-year decrease. Sales and marketing expenses increased by 5.9% to RMB102.7 million (US$14.7 million), or 32.4% of total revenues, from RMB97.0 million, or 23.2% of total revenues, in the full year of 2024. The increase was primarily due to the same factors that led to the half-year increase Technology and content expenses decreased by 38.0% to RMB28.3 million (US$4.0 million), or 8.9% of total revenues, from RMB45.6 million, or 10.9% of total revenues, in the full year of 2024. The decrease was primarily due to the same factors that led to the half-year decrease. General and administrative expenses decreased by 2.7% to RMB126.9 million (US$18.1 million), or 40.0% of total revenues, from RMB130.5 million, or 31.2% of total revenues, in the full year of 2024. The decrease was primarily due to (i) the reduction in personnel costs as a result of improved staffing allocation, and (ii) a decrease in an impairment of long-lived assets other than goodwill offset by an increase in an allowance for credit losses. Loss from operations was RMB143.4 million (US$20.5 million), compared with RMB136.3 million in the full year of 2024. Financial income, net was RMB9.4 million (US$1.3 million), compared with RMB17.3 million in the full year of 2024, primarily due to a decrease in the fair value changes of equity securities investments and a decrease in interest income. Net loss was RMB133.3 million (US$19.1 million), compared with RMB123.1 million in the full year of 2024. Adjusted net loss4 was RMB133.0 million (US$19.0 million), compared with RMB120.7 million in the full year of 2024. Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.07 (US$0.01), compared with RMB0.06 in the full year of 2024. 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, March 27, 2026 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: 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: 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: [email protected] Phone: +1 (646) 224-6957 ICR, LLC Robin Yang Email: [email protected] Phone: +1 (646) 224-6957 View original content:https://www.prnewswire.com/news-releases/yunji-announces-second-half-and-fiscal-year-2025-unaudited-financial-results-302727067.html

This article first appeared on GuruFocus. Release Date: August 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yunji Inc (NASDAQ:YJ) has successfully launched its flagship product, Qingziyang Organic Milk, achieving RMB5 million in sales at launch, which helps establish the company's health-focused brand awareness. The company's other major products, such as Life Slimming Coffee and Probiotic Bolus, have performed exceptionally well, with sales reaching RMB10 million and nearly RMB70 million, respectively. Yunji Inc (NASDAQ:YJ) is expanding its public domain channels, upgrading Tmall infrastructure, and partnering with top influencers for live streaming sales, enhancing its market presence. The SUYE beauty brand has received positive market feedback, with the SUYE PRO-XLANE FIRMING Series generating sales exceeding RMB10 million. Yunji Inc (NASDAQ:YJ) maintains a solid gross margin of 47.3%, attributed to sustained customer loyalty and effective product curation focusing on high-margin categories. Yunji Inc (NASDAQ:YJ) experienced a decline in total revenue, from RMB233.8 million a year ago to RMB158.3 million, due to weakened consumer confidence and market conditions. The company reported a net loss of RMB100.7 million compared to a net loss of RMB8 million a year ago, indicating increased financial challenges. Operating expenses increased to RMB179.4 million from RMB149.1 million in the same period of 2024, driven by higher member management fees and personnel costs. General and administrative expenses rose significantly to RMB93.4 million from RMB33.5 million a year ago, mainly due to a high allowance for credit losses. Yunji Inc (NASDAQ:YJ) saw a decrease in cash and cash equivalents, with RMB217.1 million as of June 30, 2025, compared to RMB242.8 million as of December 31, 2024, impacting liquidity. Warning! GuruFocus has detected 2 Warning Signs with YJ. Is YJ fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the performance of Yunji's flagship product, Qingziyang Organic Milk, and its role in the company's strategy? A: Shanglue Xiao, CEO, explained that Qingziyang Organic Milk is central to Yunji's organic health strategy. It achieved RMB5 million in sales at launch, helping to establish Yunji's health-focused brand image. The product is pivotal for expanding Yunji's presence in the retail market through community leaders. Q: How did Yunji's other major products perform in the first half of 2025? A: Shanglue Xiao, CEO, reported that Life Slimming Coffee achieved over RMB10 million in sales, Probiotic Bolus nearly RMB70 million, and both freeze-dried sea buckthorn powder and Herbal Essentia paste generated more than RMB5 million each. These successes align with Yunji's organic health strategy and the national health agenda. Q: What are the key financial results for Yunji in the first half of 2025? A: Nan Song, Senior Financial Director, stated that total revenue was RMB158.3 million, down from RMB233.8 million a year ago, due to softer consumer confidence and strategic product selection refinement. Despite this, the gross margin remained solid at 47.3%. Q: How is Yunji managing its operating expenses amid market challenges? A: Nan Song, Senior Financial Director, noted that fulfillment expenses decreased significantly due to lower warehousing and logistics costs, while sales and marketing expenses increased slightly due to membership growth. Technology and content expenses decreased, reflecting staffing optimization. Q: What is Yunji's strategic focus moving forward? A: Nan Song, Senior Financial Director, emphasized that Yunji will focus on improving gross margins, aiming for breakeven, and strengthening its financial position. The company is committed to financial discipline and capturing growth opportunities in an evolving market environment. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

HANGZHOU, China, Aug. 21, 2025 /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 half year ended June 30, 2025[1]. First Half 2025 Highlights Total revenues in the first half of 2025 were RMB158.3 million (US$22.1 million), compared with RMB233.8 million in the same period of 2024. 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 an impact on sales. Repeat purchase rate[2] in the twelve months ended June 30, 2025 was 71.0%. Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, "In the first half of 2025, we continued to advance our strategic transformation toward becoming a trusted advocate for organic living. By building an integrated portfolio that combines organic health products, beauty offerings, and immersive wellness experiences, we are deepening customer engagement and reinforcing our focus on high‑margin, high‑retention categories. We are expanding user acquisition through both online and offline channels to better connect with consumers and deliver greater value to our members." "During the first half of 2025, we continued to optimize our cost structure while ensuring efficient capital allocation. We remain committed to maintaining financial discipline and driving improved profitability while supporting long-term, sustainable growth," said Ms. Nan Song, Senior Financial Director of Yunji. First Half 2025 Unaudited Financial Results Total revenues were RMB158.3 million (US$22.1 million), compared with RMB233.8 million in the same period of 2024. 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 an impact on sales. Revenues from sales of merchandise were RMB131.7 million (US$18.4 million), compared with RMB185.0 million in the same period of 2024. Revenues from the marketplace business were RMB24.5 million (US$3.4 million), compared with RMB45.2 million in the same period of 2024. Other revenues were RMB2.1 million (US$0.3 million), compared with RMB3.6 million in the same period of 2024. Total cost of revenues decreased by 31.2% to RMB83.5 million (US$11.7 million), or 52.7% of total revenues, from RMB121.3 million, or 51.9% of total revenues, in the same period of 2024. Revenues and cost of revenues are recognized on a gross basis. Total cost of revenues, which mainly comprises the costs related to the sales of merchandise, decreased accordingly in the first half of 2025. Total operating expenses increased by 20.3% to RMB179.4 million (US$25.0 million) from RMB149.1 million in the same period of 2024. Fulfillment expenses decreased by 51.7% to RMB20.6 million (US$2.9 million), or 13.0% of total revenues, from RMB42.6 million, or 18.2% of total revenues, in the same period of 2024. The decrease was primarily 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 increased by 5.5% to RMB50.1 million (US$7.0 million), or 31.6% of total revenues, from RMB47.5 million, or 20.3% of total revenues, in the same period of 2024. The increase was primarily due to (i) the increase in member management fees, as a result of our expanded initiatives to grow the membership base, and (ii) the increase in personnel costs as a result of adjusting staffing structure to support market expansion initiatives, partially offset by a reduction in advertising expenses. Technology and content expenses decreased by 40.0% to RMB15.3 million (US$2.1 million), or 9.7% of total revenues, from RMB25.5 million, or 10.9% of total revenues, in the same period of 2024. The decrease was primarily due to the reduction in personnel costs as a result of staffing structure refinements. General and administrative expenses increased by 178.6% to RMB93.4 million (US$13.0 million), or 59.0% of total revenues, from RMB33.5 million, or 14.3% of total revenues, in the same period of 2024. The increase was primarily due to an increase in an allowance for credit losses[4] , partially offset by (i) the reduction in professional service expenses, as a result of our cost-saving efforts, and (ii) the reduction in personnel costs as a result of staffing structure refinements. Loss from operations was RMB100.4 million (US$14.0 million), compared with RMB32.4 million in the same period of 2024. Financial income, net was RMB3.9 million (US$0.5 million), compared with financial income, net of RMB25.6 million in the same period of 2024, primarily due to a decrease in the fair value changes of equity securities investments. Net loss was RMB100.7 million (US$14.1 million), compared with RMB8.0 million in the same period of 2024. Adjusted net loss (non-GAAP)[3] was RMB100.5 million (US$14.0 million), compared with RMB6.7 million in the same period of 2024. Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.05, compared with RMB0.00 in the same period of 2024. 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 Thursday, August 21, 2025, 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: 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: 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: [email protected] Phone: +1 (646) 224-6957 ICR, LLC Robin Yang Email: [email protected] Phone: +1 (646) 224-6957 View original content:https://www.prnewswire.com/news-releases/yunji-announces-first-half-2025-unaudited-financial-results-302535584.html SOURCE Yunji Inc.

Total Revenue: RMB97.1 million, down from RMB149.1 million a year ago. Revenue from Sales and Merchandise: RMB75.5 million. Revenue from Marketplace Business: RMB19.4 million. Gross Margin: 48.3%. Fulfillment Expense: RMB16.4 million, down from RMB24.8 million a year ago. Sales and Marketing Expenses: RMB30.2 million, up from RMB28.5 million a year ago. Technology and Content Expenses: RMB8.5 million, down from RMB12 million a year ago. General and Administrative Expenses: RMB71.1 million, up from RMB44.5 million a year ago. Total Operating Expense: RMB126.2 million, up from RMB109.8 million a year ago. Loss from Operation: RMB77.7 million, compared to RMB39.5 million a year ago. Net Loss: RMB85 million, compared to RMB65.9 million a year ago. Adjusted Net Loss: RMB84.5 million, compared to RMB65 million a year ago. Basic and Diluted Net Loss per Share: RMB0.04, compared to RMB0.03 a year ago. Cash and Cash Equivalents: RMB242.8 million as of December 31, 2024. Warning! GuruFocus has detected 3 Warning Signs with YJ. Release Date: April 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yunji Inc (NASDAQ:YJ) achieved an improved overall gross margin of 49.4% in 2024, indicating strong profitability. The user repurchase rate remained robust at 71.9%, reflecting high customer loyalty and satisfaction. The company's private label organic health products, such as probiotic bolus and slimming coffee, have gained significant consumer trust and generated substantial sales. Yunji Inc (NASDAQ:YJ) successfully launched the SUYE Pro-Ascen firming series, generating over RMB20 million in sales, demonstrating strong demand for their skincare solutions. The Jianxin Tea Therapy Program showed promising results during its trial phase, with a 91% return rate among participants, indicating strong user engagement and loyalty. Total revenue decreased to RMB97.1 million from RMB149.1 million a year ago, indicating a decline in sales performance. The company experienced an increase in general and administrative expenses to RMB71.1 million, primarily due to severance payments and impairment charges. Net loss widened to RMB85 million compared to RMB65.9 million a year ago, reflecting financial challenges. Operating expenses increased to RMB126.2 million from RMB109.8 million in the same period of 2023, impacting profitability. Despite strategic cost-saving measures, near-term expenses such as severance costs partially offset the benefits, affecting the bottom line. Q: Can you provide more details about the Jianxin Tea Therapy Program and its significance? A: The Jianxin Tea Therapy Program, launching in May, offers a unique wellness experience combining tea tasting, traditional Chinese studies, meditation, and stretching. It uses award-winning organic black tea from Wuyi Mountain, certified by multiple countries. The program is an 80-minute ritual divided into stretching, tea tasting, and sharing sessions, promoting self-healing and cultural appreciation. It aims to enhance personal wellness, strengthen community ties, and boost sales of organic health products. Q: How did Yunji's financial performance fare in the first quarter of 2024? A: Yunji reported total revenue of RMB97.1 million, down from RMB149.1 million the previous year. Despite a decrease in sales, the gross margin remained strong at 48.3% due to customer loyalty and effective product curation. Operating expenses increased to RMB126.2 million, resulting in a net loss of RMB85 million. The company is focused on optimizing costs and improving profitability. Q: What strategic changes did Yunji implement in 2024 to enhance operational efficiency? A: Yunji undertook a complete operational realignment, enhancing organizational structure, improving efficiency, and optimizing business layout. This included consolidating the health and finance businesses, refining staffing structures, and implementing cost reductions in fulfillment and technology. These changes aim to build a more efficient operational framework for future growth. Q: How is Yunji's private label brand SUYE performing, and what are its future plans? A: SUYE has seen significant success, with the Pro-Ascen firming series generating over RMB20 million in sales in 2024. The brand is expanding its product line in 2025 with new offerings like the SUYE Pro-Ascen firming lotion. SUYE aims to become a world-class leader in skincare by offering premium quality products at accessible prices and driving growth through innovation. Q: What is Yunji's strategic focus for 2025 and beyond? A: Yunji is committed to becoming a global leader in organic living, focusing on high-value organic health foods and advanced skincare products. The strategy involves shifting towards high-margin, high-repurchase products to enhance profitability and achieve breakeven. Yunji is also evolving into a service experience platform, leveraging opportunities in the silver economy and building health-focused communities through initiatives like the tea therapy wellness courses. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.