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Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Yunji's second half 2025 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer, and Ms. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based solely on the company's current expectations and current market operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors of Yunji and its industry. These forward-looking statements can be identified by terminology such as will, expect, anticipate, continue, or other similar expressions.

For a detailed discussion of these risks and uncertainties, please refer to the company's related documents filed with the U.S. SEC. Any forward-looking statements that the company makes on this call are based on assumptions as of today, and are expressly qualified in the entirety by cautionary statements, risk factors, and details of its filing with the SEC. The company does not undertake any obligation to update these statements except as required under applicable law. With that, I will now turn it over to Mr. Shanglue Xiao, Chairman and CEO of Yunji. Please go ahead, sir.

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Hello, everyone, and welcome to Yunji's earnings call. Thank you for your continued interest and support.

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Yunji has remained committed to its strategic positioning of becoming a global leader in organic healthy living while making steady progress in the organic and healthy living market. In the second half of 2025, we continued to refine our premium product strategy, further strengthen customer loyalty, and actively explore and expand our sales channels. Now let me walk you through the company's financial performance and strategic execution. In the second half of 2025, the company achieved total revenue of around CNY 159 million, excluding the impact of the revenue recognized from long-aged incentive payables to inactive members. Merchandise sales revenue was CNY 128 million, up 0.16% compared to the second half of 2024.

Meanwhile, the company's net loss significantly narrowed from CNY 115 million in the same period of 2024 to CNY 33 million, representing a 70% reduction. This was driven by the combined impact of our product strategy, operational efficiency improvements, and disciplined financial management. In terms of user operations, the company maintained a high repurchase rate of 69.7%, which not only reflects the users' high recognition of Yunji's products and services, but also serves as the core foundation for the company's steady development. These results reflect the growing effectiveness of and our disciplined product selection and operational execution, with the quality and efficiency of the company's development continuing to improve.

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In the second half of 2025, we firmly continued to cultivate our core business segments and achieve the phased progress.

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First, we continued to advance our health strategy, further integrating organic food within health sector, and building a distinctive portfolio of the food & medicine homology products. By closely aligning with China's national health strategy and precisely addressing consumers health focused needs. Our organic foods and health products have continued to earn the trust of consumers. In 2025, five of the company's organic food and health products each generated sales of over CNY 10 million, including the Yangcheng Lake hairy crabs, the probiotic bolus, Life Coffee, Yingjia organic milk, and the Baiyueshan freeze-dried sea buckthorn powder.

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As consumer awareness of, and the demand for health and wellness continue to grow, we further expanded out our portfolio of food medicine homology products. One example is in the poly

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One example is in the Polygonatum tea, which we launched in the fourth quarter of 2025. With its natural and health-focused advantages, the Polygonatum tea quickly became one of our most popular products. Supported by premium ingredients and refined processing techniques, the Jiuhua Zun Polygonatum tea achieved rapid sales growth, making it a new highlight within our healthy living business. As of the end of December 2025, sales of this product had exceeded CNY 80 million. In the future, diversified health consumption needs.

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We developed and tailored value for money strategy for SUYE, closely along with today's more rational consumer spending trends, and this has helped the brand steadily strengthen its market position. To meet consumers' core demands for quality products at attractive prices, we have introduced a range of flagship SUYE products and product bundles that have been well recognized in the market over the years. In 2025, sales of SUYE's polypeptide series increased by 20% year-over-year, while sales of the rice cleansing mousse increased by 32% year-over-year. Sales of the Pro-Xylane firming series also increased by 26% from CNY 20.7 million in 2024 to CNY 26.2 million in 2025. SUYE's strong performance confirms the forward-thinking nature of our value for money strategy and lays a solid foundation for further market expansion.

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At the same time, we created and differentiated competitive advantages through the experience and show services, gradually transforming from a product sales platform into a product plus experience platform, further enhancing user engagement and loyalty. We have created a comprehensive supply chain traceability experience, allowing users to participate in the verification of product quality throughout the process. Reinforcing trust from the source through organic standards and building deep trust in brand. For example, in October 2025, we organized a Baiyueshan freeze-dried sea buckthorn powder traceability tour, where we organized the members to visit the Qinghai sea buckthorn production area, allowing members to directly witness the entire process from organic cultivation to scientific processing of a wild sea buckthorn. This transparent traceability model has continually strengthened members' trust in our products. Participation in these traceability programs has grown steadily, attracting an increased number of members.

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In addition, we continue to enhance our tea therapy experience services, laying a solid foundation for broader consumer recognition of the food and medicine homology products, and supporting the expansion of our offerings in this category. Today, our experience services span the full product journey from front-end supply chain traceability that validates product quality to back-end interactive services such as the tea therapy. The end-to-end experience design not only enhances user participation and brand trust, but also builds emotional connections between users and the platform. We believe this will serve as a core competitive strength as we continue our transition toward a product plus experience platform.

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As we continue to strengthen our core business, we remain keenly aware that growth is in a constant priority for any company. In the second half of 2025, while consolidating our existing user base, we actively explore diversified customer acquisition channels, seeking to balance growth with efficiency and support the company's sustainable development.

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We efficiently activated existing users through a series of targeted operational initiatives. For example, in one campaign, we sent repurchase invitations to over 50,000 dormant users, and 44.87% of those users subsequently placed order on the platform. These targeted initiatives delivered strong activation and conversion results, fully unlocking the commercial value of and our existing user base. In the first half of 2026, we expanded the existing user activation strategy focusing on launching the Super Wednesday campaign. Through our dedicated entry point in our APP, we are featuring a curated selection of the products, and the campaign has already driven a 25% increase in daily active users compared with normal days. In addition, we put greater emphasis on expanding our offline channels. In 2025, we entered nine new cities through our local delivery model and added more than 4,000 new community leaders.

These community leaders helped us attract a large number of high-loyalty, high-value quality users, accumulating valuable user assets for the company's long-term development.

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As we look back on the second half of 2025, we made steady and solid progress. Looking ahead to the first half of 2026, our priorities are clear. In the year ahead, Yunji will remain committed to its strategic positioning as a global leader in organic living. With the products and experiences serving as our dual growth engines and with efficiency and growth as our core priorities, we will continue to contribute to the healthier and more organic lifestyles for families in China.

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This concludes my prepared remarks for today. With that, I will hand it over to Ms. Nan Song, our Senior Financial Director, to go through the financial results.

Thank you, ShanglNan Song. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in yuan terms and all comparisons and percentage changes are on a year-over-year basis unless otherwise noted. Throughout 2025, we operate in a challenging and uncertain market environment. Nevertheless, supported by our resilient financial position, we continue to advance our strategic priorities to offer greater premium products targeted to our users, while remaining disciplined in cost management and making timely adjustments to adapt to dynamic market conditions. Now let's take a closer look at our second half 2025 financials. Total revenues were CNY 158.7 million, compared to CNY 183.8 million a year ago. Revenues from sales of merchandise were CNY 136.4 million.

This figure includes the impact from the revenue recognition of long-term incentive sales to inactive members. Including this impact, our merchandise sales grew by 0.16% compared to the same period of 2024, reflecting the healthy growth of our core business and demonstrating the effectiveness of our strategic focus on organic health and products under private labels. Revenues from our marketplace business were CNY 22.1 million. The change in total revenues was primarily driven by our deliberate decision to scale back the marketplace business while refining our product offering across all categories and optimizing our selection of suppliers and merchants. These strategic moves dynamically position our marketplace for sustainable growth.

On the cost side, total cost of revenues increased by 3% to CNY 92.7 million, primarily due to the high merchandise sales, which are recognized on our gross basis. Our gross margin remained resilient during the period. This was supported by strong customers' loyalty to our private label products, together with our effective product curation strategy, which focused on selecting and promoting premium, high-retaining categories across our integrated portfolio. Now let's take a look at our operating expenses in the second half of 2025. Fulfillment expenses decreased to CNY 13.3 million from CNY 33.6 million a year ago. The decrease was primarily due to lower personnel costs, driven by a more optimized allocation of staffing resources. Sales and marketing expenses were CNY 42.6 million, compared to CNY 49.5 million a year ago.

The change is primarily due to our shift of promotional efforts from online to offline channel and provide normal initiatives reflecting our agile marketing approach that dynamically allocates resources based on market conditions and the customers' engagement effectiveness. Technology and content expenses were CNY 13 million, compared to CNY 20.1 million a year ago. This was mainly due to the reduction in personnel costs as a result of staffing structure limit refinement. General and administrative expenses decreased to CNY 33.5 million from CNY 96.9 million a year ago. The decrease was mainly driven by lower impairment charge on long-lived assets other than goodwill, a low allowance for credit losses, and reduced personnel costs resulting from a reduction in headcount. Our expenses structure optimization demonstrated the effectiveness of our refined management approach. Well, we strategically invested in sales and marketing for offline channel development, a key component of our customers.

According to strategy, we achieved significant reduction across other expenses categories. As a result, total operating expenses in the second half of 2025 decreased to CNY 112.4 million from CNY 200.1 million in the prior year period. Our 44% reduction correspondingly, loss from operations narrowed significantly to CNY 43 million from CNY 103.9 million a year ago. This disciplined expense management reflects the continuous improvement in operating efficiency and our progress towards profitability. Net loss was CNY 32.6 million compared with CNY 115.1 million a year ago, while adjusted net loss was CNY 32.5 million compared with CNY 114 million in the prior year period.

The continued narrowing of losses reflects the strength of our strategic focus on organic health and our effort of offering better experience to our users rather than simply operating as an e-commerce transaction platform. Basic and diluted net loss per share attributable to ordinary shareholders were both narrowed to CNY 0.02 from CNY 0.06 in the same period of 2024. Turning to liquidity, as of December 31st, 2025, we had a total of CNY 216.1 million in cash and cash equivalents. The adjusted cash and the short-term investment on our balance sheet compared to CNY 242.8 million as of December 31st, 2024. Our liquid assets remained sufficient to cover our payable obligations.

At the same time, we continue to focus on optimizing working capital and managing our efforts efficiently to support our operations. To summarize, in 2025, despite slow overall market growth, cautious consumer sentiment and increasingly selective spending behavior, we continued to deliver steady improvement in our professional performance. This reflects the resilience of our business as well as the effectiveness of our disciplined product selection and operational execution. Our solid financial position continued to support our long-term strategic priorities, while our continued focus on resource integration and efficient asset utilization has played an important role in driving this improvement. Looking forward, we'll remain focused on progress toward breakeven and further strengthen our overall financial position while preserving the flexibility to navigate a dynamic market environment to support sustainable long-term growth. This concludes our prepared remarks for today. Thank you.

Thank you. That brings us to the end of today's call. Thank you for attending. You may now disconnect.

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to the Yunji's First Half 2025 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; and Mr. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on the company's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors of Yunji and its industry. These forward-looking statements can be identified by terminologies such as will, expect, anticipate, continue or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to the company's related documents filed with the U.S. SEC. Any forward-looking statements that the company makes on this call are based on assumptions as of today and are expressly qualified in the entirety by cautionary statements, risk factors and other details of its filing with the SEC. The company does not undertake any obligation to update these statements, except as required under applicable law. With that, I will now turn it over to Mr. Shanglue Xiao, Chairman and CEO of Yunji. Please go ahead, sir.

[Interpreted] Hello, everyone and welcome to Yunji's First Half 2025 Earnings Call. Thank you for your continued interest and support. Over the past 6 months, we have remained firmly anchored to our organic health strategy. While overall market conditions and a weakened consumer confidence have led to a slight decline in our total revenue, we believe that staying committed to organic health is the right strategy and represents an important opportunity for Yunji's future development. And we have centered our strategy on organic health positioning [ Youjiang ] Organic Milk as our flagship product to shape our brand image in this space. The product achieved an RMB 5 million in sales at launch, helping establish Yunji's health-focused brand awareness among consumers. Building on this success, we will gradually expand the concept from this foundation. Additionally, [ Youjiang ] milk will serve as an important tool for Yunji's expansion, helping us better penetrate the retail market developed through community leaders. Over the past 6 months, our other major products have also performed exceptionally well. [indiscernible] slimming coffee achieved sales of over RMB 10 million. Probiotic bolus reached nearly RMB 7 million, while freeze-dried sea buckthorn powder and [indiscernible] each generated more than RMB 5 million in sales. This success comes from our organic health strategy and our scientific weight management product selection, both aligned closely with the national health agenda outlined in Healthy China 2030, a government initiative that sets long-term goals to improve public health and health care by 2030. This marks our approach sustainable in the long term and holds tremendous development potential. Moving forward, we will continue to expand our brand influence, fully integrated organic health concept and continually optimize our product mix. Our beauty brand, SUYE, offers high-value products that align closely with the consumer preferences in today's market. Its approach of combining major products with high-impact promotions has an achieved positive market feedback. The SUYE PRO-XLANE FIRMING ESSENCE LOTION generated over RMB 4 million in sales at launch and more than [ 32 ] of the buyers being returning dormant users. The entire SUYE PRO-XLANE FIRMING Series, including creams, lotion and essences generated sales exceeding RMB 10 million. In terms of the channels and brand development, we are actually expanding public domain channels, upgrading our Tmall infrastructure, establishing partnership with top influencers for live streaming sales and enhancing WeChat channels content. Currently, our WeChat channel transaction volume ranks higher than 92% of our peers. As we expand our public domain sales, we will continue monitoring market expenses and constantly improving cost efficiency. Our Jianxin Tea Therapy business is currently in the incubation phase. Thanks to the strong growth potential and the customer loyalty of the tea therapy program, we successfully reached our goal of building a 100% tea therapy team in the first half of the year where the frequent users maintained a solid 50% participation rate. More notably, participants in the tea therapy program have gradually expanded from existing members to [indiscernible] high net worth individuals. At present, our channel members booking through the program account for nearly 15% of often all participants, creating significant opportunities for further business growth. Meanwhile, the tea therapy program will help Yunji further establish our organic health image and provide quality traffic for our organic health products. In the first half of 2025, over 90% of the tea therapy users purchased our main products, effectively supporting sales of our other health products. The rapid growth of internet retail is posing new challenges for our community retail group leaders. Under this trend, community group leaders are more inclined to embrace private domain e-commerce and connect with the store suppliers. Therefore, in the future, we will focus on expanding our community group leader channels, placing organic foods in community group leaders' stores. This will not only empower community group leaders but also allow more people to conveniently enjoy our organic products, ultimately achieving mutual benefits and win-win results. With that, I will hand over to Ms. Nan Song, our Senior Financial Director, to go through the financial results.

Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms and all comparisons and percentage changes are on a year-over-year basis unless otherwise noted. During the first half of 2025, market uncertainties still posted challenges to our operations, even though our financial position allowed us to continue advancing our strategic initiatives. We continue to assess the profitability of both new and existing business lines and make timely adjustments to adapt to shifting market conditions, ensuring we're meeting our leveraged financial foundation while driving ongoing improvements. Now let's take a close look at our financials. Total revenue were RMB 158.3 million compared to RMB 233.8 million a year ago. Revenues from sales of merchandise were RMB 131.7 million and revenues from our marketplace business were RMB 24.5 million. The changes were primarily due to softer consumer confidence and our ongoing strategy to refine product selection across all categories and optimization our supply and merchant bases, which affected our sales. Despite these challenges, our gross margin remained relative solid at 47.3%. This was due to sustained customer loyalty towards our promised levels and our effective product curation trait that emphasis high margin. High [indiscernible] within our integrated product portfolio. Now let's take a look at our operating expenses. Fulfillment expenses decreased to RMB 20.6 million from RMB 42.6 million a year ago. This was primarily driving by lower warehousing and logistics costs from reduced merchandise sales with [indiscernible] personnel expenses for staffing structure [indiscernible] sales and marketing expenses were RMB 50.1 million compared to RMB 47.5 million a year ago. This was primarily due to high member management fees from growing the membership base and increased personnel cost to support expansion into markets, partially offset by lower advertising expenses. Technology and content expenses were RMB 15. 3 million compared to RMB 25.5 million a year ago. The decrease was mainly due to a reduction in personnel costs resulting from staffing structure optimization. General and administrative expenses were RMB 93.4 million compared to RMB 33.5 million a year ago. The increase was mainly due to a high allowance for credit losses, partly offset by lower professional service expenses and personnel costs. Excluding the onetime loss, G&A expenses decreased by 35.6%, reflecting the result of our expenses optimization effect. Total operating expenses in the first half of 2025 were RMB 179.4 million compared to RMB 149.1 million in the same period of 2024. Loss from operations was RMB 100.4 million compared to loss of operating of RMB 32.4 million a year ago. Net loss was RMB 100.7 million compared with net loss of RMB 8 million a year ago, while adjusted net loss was RMB 100.5 million compared with adjusted net loss of RMB 6.7 million a year ago. Basic and diluted net loss per share attributed to ordinary shareholders were both RMB 0.05 compared with basic and diluted net income per share of -- in the same period of 2024. Turning to recorded as of [ January ] 30, 2025, we had a total of [ RMB 217.1 million ] in cash and cash equivalent expected cash and short-term investment on our balance sheet compared to [ RMB 242.8 million ] as of December 31, 2024. Our liquid assets provide adequate coverage for our payable obligation. In addition, we are [indiscernible] to making the most of our working capital and [indiscernible] managing our assets to best support our operations. To sum up, during the first half of 2025, we continue 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. Our continued focus on [indiscernible] integration together with our commitment to efficient asset utilization play a key role in achieving this improvement. Looking ahead, we will concentrate on continuously improve our gross margin, aiming to achieve breakeven and strengthening our overall financial position with a strategic focus, where we are prepared to manage future [indiscernible] and capture growth opportunities in a evolving market environment. This concludes our prepared remarks for today. Thank you.

That brings us to the end of today's call. Thank you for attending. You may now disconnect.

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's Fourth Quarter 2024 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; along with Mr. Yeqing Cui, Senior Financial Director. As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on the company's current expectations and current market operating conditions and relate to events that involve known or unknown risks and uncertainties or other factors of Yunji and its industry. These forward-looking statements can be identified by the terminologies such as will, expect, anticipate, continue and other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to the company's related documents filed with U.S. SEC. Any forward-looking statements that the company makes on this call are based on assumptions as of today and are expressly qualified in the entirety by the cautionary statements. Risk factors and details of the filings with the SEC. The company does not undertake any obligation to update these statements, except as required by applicable law. With that, I would now like to turn the call over to Mr. Shanglue Xiao. Chairman and Chief Executive Officer of Yunji. Please go ahead, sir.

Hello, everyone. Welcome to Yunji's Fourth Quarter 2024 Earnings Call. Looking back on to our operations over the past year, while focusing on the future, we continue to firmly position organic health as the key strategic objectives for our future development. In 2024, our overall gross margin improved to 49.4% while our user repurchase rate maintained a strong 71.9%. Behind these numbers lies the trust our consumers have place in us, they wrote for healthy living. But more important than numbers is our complete operational realignment. Over the past year, we have enhanced our organizational structure, improved operational efficiency and optimized our business layout. These changes will serve as the starting point for us to move forward with greater agility in 2025. This March, we completed the consolidation of our health business and business. This significant move enable us to better provide a trusted healthy living solutions for our users, strengthening our chain through true traceability, authentic experiences and general sharing, bringing organic house to millions of households. Under our commitment to our organic health strategy, our private label organic health products have gradually earned our user trust. For example, our probiotic achieved sales of nearly RMB 5 million in the fourth quarter of 2024 and over RMB 6 million in the first quarter of 2025. Additionally, our new life coffee launched at the end of March this year in high consumer recognition, generating sales of over RMB 5 million in just 1.5 months after its launch. We will continue to strengthen our private label brand SUYE. Through our efforts in 2024 and the first quarter of this year, we have completed a strategic upgrade from SUYE's messaging to its visual identity, upholding the brand mission of bringing advanced skincare technology into your daily routine. SUYE is dedicated to offering premium quality products at accessible prices, aspiring to become world class leader in skincare and the proud representative of China's innovation in beauty. At SUYE, we are building complete product lines around our flagship innovation to deliver exceptional value and drive growth. In 2024, we launched our SUYE Pro firming series, a premium yet affordable line that generated over RMB 20 million in total sales attachment to the strong demand for high-value skin care solutions. we are expanding this series in 2025 5 with the launch of SUYE Pro solution, a highly competitive flagship product. This new addition will further enhance the fast growing series, solidifying its position as a go-to choice for customers, taking advancement in skincare with our premium price tags. We are thrilled to introduce our new business initiatives for 2025, the therapy program, a unique wellness experience designed to deliver exceptional value well promoting holistic health is meticulously [indiscernible] program, combined tea tasting, traditional Chinese studies, meditation and stress lessons, offering participants a deeply enriching wellness journey. During its trial place, the program achieved remarkable success with 91% over its first 150 participating enthusiasts, retaining for frequent sessions. Some users even attending morning key courses for 100 consecutive days, highlighting the program's ability to build a strong user loyalty and engagement. This April, we plan to recruit 1,000 tea enthusiast to join the program. On March 20, the tea therapy program will launch. And by June, we aim to train and onboard 100 skilled tea therapies. By combining high margin purchase with an immersive and engaging experience. These initiatives strengthen the appeal of our organic health offerings, while fostering the customer loyalty and satisfaction. This serves as a pivotal step in our from a traditional transaction platform to a dynamic experience ecosystem. In 2025, Yunji remains committed to its vision as the global leader in organic living, focusing on delivering high-value organic health foods and great advanced skincare products. By leveraging significant cost reductions achieved last year, we will continue optimizing our product line up to create a standout products that offer exceptional value for money. Our strategy centers on shifting towards high margin, high repurchase rate products to enhance profitability and then achieve breakeven. Beyond product sales, Yunji is evolving into a service experience platform, embracing the promising opportunities of the silver economy. Our innovative tea therapy wellness causes will serve as the cornerstone for building health-focused communities. This program unites product sales experiences and social engagement into a competitive ecosystem, a tree of life with every branch nurtures growth and connection. In the future, we will continue to stimulate product innovation, enhance core competence and create greater social value for Chinese families. With that, I will hand it over to Mr. Cui, our Senior Financial Director to go through the financial results.

Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms, and all comparisons and the percentage change on a year-over-year basis, unless otherwise noted. During the first quarter of 2024, we maintained our focus on optimizing our cost structure, while adapting to evolving market dynamics. We took the steps to refine our staffing structure and cost reductions in areas such as fulfillment and technology. However, these long-term strategic cost saving measures were partially offset by increase in near-term expense, including several costs which affect our bottom line. These change -- these actions represented critical progress towards building a more efficient operational framework for the future. Now let's take a close look at our financials. Total revenue was RMB 97.1 million compared to RMB 149.2 million a year ago. Revenues from sales of merchandise were 75.5 million, and the revenues from our marketplace business were 19.4 million. These changes were primarily driven by ongoing refinements to our product range across all categories. This, coupled with the optimization of our supplier and the merchant network result in a short-term impact on sales. Despite these changes, our gross margin remained relatively strong at 48.3 percentage, mainly due to continued customer loyalty towards our private labels and our effective product creation strategy. Now let's take a look at our operating expense. Fulfillment expense were $16.4 million compared to $28.8 million a year ago. The decrease was mainly due to reduced staff costs as a result of starting structural requirements, reduce the warehousing and logistics expense due to lower multisales and lower service fees charged by third-party payment settlement platforms. Sales and market expense were 30.2 million compared to 38.5 million. The increase was primarily due to an increase in business promotion expense. Technology and content expense were 8.5 million compared to 12 million a year ago. This was largely due to the reduction in personnel costs as a result of structural requirements and reduced the server cost. General and administrative expense were 71.1 million compared to 44.5 million a year ago. This was mainly due to severance payments from our staff restructuring and impairment charges on long-lived assets. Total operating expense in the first quarter increased to 126.2 million from 109.8 million in the same period of 2020, loss from operation was 77.7 million compared to 39.5 million a year ago. Net loss was 85 million compared with 65.9 million a year ago, while adjusted net loss was 84.5 million compared with 65 million a year ago. Basic and diluted net loss per share attributable to ordinary shareholders were 0.04 compared to 0.03 in the same period of 2023. Turning to liquidity. As of December 31, 2024, we had a total of 242.8 million in cash and cash restricted cash and short-term investments on our balance sheet. We are dedicated to making the most of our working capital and smartly managing our assets to better support our operations. In summary, as we enter 2025, we will maintain financial client while investing strategically to drive sustainable growth and improve profitability. The restructuring undertaken in 2024 has provided us with a more streamlined operation foundation. We will continue to be prudent with our capital allocation, focusing investment on categories that demonstrate potential for sustainable growth and improve profitability. We believe this disciplined approach to cost management, coupled with our effective product creation statutory will enable us to navigate the current market conditions and position us for improved performance in the future. This concludes our prepared remarks for today. Operator, we are now ready to take questions.

[Operator Instructions] And the first question will come from Megan Wang, Investor.

[Foreign Language]

Thank you for your question. Let me share more about our therapy product. And this projection is going to be launched in May, and then it aims to -- and our users to enjoy a space and where people can cast their mind on their body and so and in healthier lifestyle. And what make this unique is our production plus the virtualized service model, which creates a complete experience, not just the fee but a journey towards wellness.

[Foreign Language] for us and the Chinese people. For we carefully selected a world-winning organic tea Mountain. It is certified organic by multiple countries and across from the traditional production area of Mountain. The tea has a beautiful glossy black appearance and grows into a smooth, sweet infusion that embodies quality. But the real magic lies in the tea therapy ritual, which is an 80-minute experience divided into three parts. 20 minutes of traditional stretching, 40 minutes of tea testing and meditation tea and 20 minutes of sharing with fellow participants. This isn't just about drinking tea, it is about self-healing through classical culture and joy in daily moments. The program even integrates a professionally designed curriculum based on Chinese classic studies to help participants achieve self-awareness and inner harmony. So these ritual participants can improve blood circulation and gain insights into themselves, all while boosting physical strength, refreshing their minds and nourishing their hearts. The name itself reflects this philosophy. It means achieving innate knowledge of the good. In essence, it is about removing negativity and embracing positivity to lead a more fulfilling life. . Finally, this project isn't just about personal wellness, it also strengthened our community and drive sales of our organic health products. It is a holistic approach that can people to health, culture and happiness.

As there are no further questions, this will conclude our question-and-answer session as well as our conference call for today. Thank you for attending today's presentation. You may now disconnect.

Good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's Third Quarter 2024 Earnings Conference Call. With us today are Ms. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Yeqing Cui, Senior Financial Director; and Ms. Kaye Liu, Investor Relations Director of the company. As a reminder, this call is being recorded. Now, I would like to hand the conference over to our first speaker today, Ms. Kaye Liu, IRD of Yunji. Please go ahead, ma'am.

Hello, everyone. Welcome to our third quarter 2024 earnings call. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and current market operating conditions and related to events that involve known or unknown risks, uncertainties and other factors of the Yunji and its industry. These forward-looking statements can be identified by terminologies such as will, expects, anticipates, continue or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to our latest document filed with the US SEC. Any forward-looking statements that we make on this call are based on assumptions as of today and are expressly qualified entirely by cautionary statements, risk factors and details of the company's filings with SEC. Yunji does not undertake any obligation to update these statements, expect as required under applicable law. With that, I will now turn over to Shanglue Xiao, Chairman and CEO of Yunji.

[Foreign Language] [Interpreted] Hello, everyone, and welcome to Yunji's third quarter 2024 earnings call. [Foreign Language] [Interpreted] So, let me start with a significant milestone in our company's growth. On November 8, we broke ground on our new headquarters, the Yunji Innovation Center. This [15 new] (ph) campus strategically located in the heart of the economic and technology development zone. Represents more than just a new office space, it is designed to be an integrated facility that brings together our marketing, training, R&D and operational teams under one roof. The center will serve as an incubator for our expanding health and beauty brands, while embodying our corporate culture and vision for the future. We secured this property at an attractive valuation in the second quarter this year, which aligns with our strategy of strategic asset diversification to strengthen our market position and optimize returns in today's dynamic environment. [Foreign Language] [Interpreted] In line with the global wellness trend, we are reinforcing our decision to health and wellness as a key pillar of our 10-year strategy. Our vision is to democratize access to healthy living, particularly in the organic food space. While organic products traditionally come with premium price tag, we've leveraged our procurement expertise to make these products more affordable without compromising on quality. Our team has traveled nationwide to discover and connect with top-notch health [practices] (ph) to supply chain, acting as eyes for our consumers by ensuring true traceability, authentic experience and genuine assurance. Additionally, we've established a robust quality control process through our proprietary Yunji health certification system, which includes random inspections of certified products even after they receive certification. These initiatives have garnered positive feedback from our users. For example, our [Autumn Moon pears] (ph) have become an annual favorite for many parents who eagerly return each October to make their family purchases. [Foreign Language] [Interpreted] We've also made significant progress in our offline expansion. In July, we launched our first wellness store, featuring traditional Chinese medicine practices. This initiative has helped us tap into the growth demographic for customers aged 41 to 55 through word-of-mouth referrals in our standardized offline system. We've successfully replicated this business model with our second location opening in October. [Foreign Language] [Interpreted] Our private label brand, SUYE, has celebrated the 14th successful year in the beauty arena. In November, our accumulated sales on the platform have exceeded RMB100 million for the year. We are particularly excited about our expansion in the premium anti-aging segment, where we align ourselves with top global brands and consistently launch outstanding products within our age recovery series. The upcoming release of specialized eye care product marks another significant advancement in our high-end eye care lineup. [Foreign Language] [Interpreted] On the technology front, digitalization is vital for accounting fast-moving consumer goods industry. Building a modern marketing infrastructure requires effective big data strategy. We are pushing forward with the development of an innovative digital platform powered by AI tools that support the integration and sharing of public resources on trading platforms. Our AI applications focus on improving customer service, generating content, sharing materials and delivering educational training, which helps lower cost while enhancing operational efficiency and service reliability. [Foreign Language] [Interpreted] So, looking ahead, we will continue to drive innovation, enhance our core competence and try to create greater social value for Chinese families. With that, I will hand it over to Mr. Cui, our Senior Financial Director, to go through the financial results.

Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms and all comparisons and percentage change are on a year-over-year basis unless otherwise noted. During the third quarter of 2024, we faced the market dynamics that impacted our operations. Nevertheless, our financial position enabled us to support our strategic initiatives. We continuously evaluated the profitability of our -- of both new and existing business lines, making informed adjustment in response to evolving market conditions. This strategy enabled us to uphold a solid financial foundation amidst a challenging business environment. During the quarter, we observed a notable improvement in our comparables, underscoring our dedication to effective cash management. Additionally, we successfully narrowed our operating and net losses, reflecting our commitment to fast and sustainable growth. At the same time, we refined our product offerings and optimized our supply network to better meet customer demand. Looking ahead, we will continue to carefully seek growth opportunities while prioritizing our financial stability. Now, let's take a close look at our financials. Total revenue was RMB86.6 million compared to RMB145.1 million a year ago. Revenue from sales of merchandise were RMB70 million, and revenues from our marketplace business were RMB14.8 million. Changes were mainly due to softer consumer confidence and ongoing refinements to our product range across all categories. Furthermore, the optimization of our supplier and merchant network also had a short-term effect on sales. Despite these changes, our gross margin remained relatively strong at 54.1%, mainly due to continued customer loyalty towards our product labels and our effective product curation strategy. Now, let's take a look at our operating expense. Fulfillment expense was RMB17.2 million compared to RMB25.6 million a year ago. The decrease was mainly due to lower warehousing and logistics costs resulting from decreased merchandise sales as well as reduced personnel costs from staffing optimization. Sales and marketing expense decreased to RMB19.3 million from RMB29.6 million a year ago. This was primarily a result of a decline in member management fees. Technology and content expense were RMB11.6 million compared to RMB13.9 million a year ago. This was largely due to lower personnel costs from staffing optimizations. General and administrative expenses were RMB25.8 million compared to RMB28.1 million a year ago. This was mainly due to a reduction in professional service expenses. Total operational expense in the third quarter decreased to RMB73.9 million from RMB97.2 million in the same period of 2023. Loss from operations was RMB26.2 million compared to RMB30.3 million a year ago. Net loss was RMB30 million compared to RMB34.8 million a year ago, while adjusted net loss was RMB29.5 million compared to RMB34 million a year ago. Basic and diluted net loss per share attributable to ordinary shareholders was both RMB0.02 compared to RMB0.02 in the same period of 2023. Turning to liquidity. As of September 30, 2024, we had a total of RMB268.4 million in cash and cash equivalents, restricted cash and short-term investments on our balance sheet. Our liquid assets are sufficient to cover our payable obligations, and we do not hold any long-term bank loans or debt on our balance sheet. In addition, we are dedicated to making the most of our working capital and smartly managing our assets to better support our operations. Looking forward, we are dedicated to improving our operational efficiencies and adjusting our strategies to effectively navigate the changing market landscape. We are confident that our [continuous] (ph) enhancement of inventory management and cost optimization leave us well-positioned for further growth by continuously innovating and refining our product offering. We believe that we can boost our momentum and create long-term shareholder value. This concludes our prepared remarks for today. Operator, we are now ready to take questions.

Thank you. [Operator Instructions] And our first question today will come from Ethan Yu of First Trust. Please go ahead.

[Foreign Language] Let me translate it myself. Thank you for taking my question. My question is about expanding our offline activities at this point of time. What is the main difference of offline stores and online e-commerce business? And how would these two businesses be combined in the future? Could you share more color on this? Thank you.

[Foreign Language] [Interpreted] Thank you for your question. Firstly, regarding market demand and target customers, offline wellness stores are an extension of Yunji's existing customer base. Over the past nine years and next year is 10 years, since Yunji's establishment, some of our earliest customers, such as young mothers, have now transitioned into the key demographics for offline wellness services, which is the 40 to 55 age group. By continuously addressing user needs, we aim to align with the development of the aging economy, broadening Yunji's customer base and truly provide services for the entire family. [Foreign Language] [Interpreted] The offline wellness business differs significantly from online marketing. We focus on offline communities within the 500-meter radius, combining ground promotion with online campaigns. This approach allows us to receive user feedback more directly and promptly during service process. [Foreign Language] [Interpreted] In the future, after establishing loyalty and trust on offline wellness users, we plan to integrate online sales and services. This is especially true for the promotion of our own brands and organic food products. The synergy between our people network and lab network will deliver exciting opportunities for our curated and health-focused business lines. [Foreign Language] [Interpreted] So, thank you for your question.

There are no further questions at this time. This will conclude the question-and-answer session, and I'd like to turn the conference back over to management for any closing remarks.

Thank you for joining us today. Please do not hesitate to contact us if you have any further questions, and we're looking forward to talking with you next quarter. Bye.

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.