Release Date: November 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Yunji Inc (YJ, Financial) has broken ground on a new headquarters, the Yunji Innovation Center, which will integrate marketing, training, R&D, and operational teams.
- The company is focusing on health and wellness as a key pillar of its 10-year strategy, making organic products more affordable.
- Yunji Inc (YJ) has successfully launched offline wellness stores, expanding its customer base and tapping into the 41 to 55 age demographic.
- The company's private-label brand SUYE has achieved significant sales milestones and is expanding in the anti-aging segment.
- Yunji Inc (YJ) is advancing its digital platform with AI tools to improve customer service and operational efficiency.
Negative Points
- Total revenue for the third quarter decreased significantly to RMB86.6 million from RMB145.1 million a year ago.
- Revenue from sales of merchandise and marketplace business both saw declines due to softer consumer confidence and product range refinements.
- Operating expenses, although reduced, still resulted in a loss from operations of RMB26.2 million.
- Net loss for the quarter was RMB30 million, indicating ongoing financial challenges.
- The optimization of the supplier and merchant network had a short-term negative effect on sales.
Q & A Highlights
Q: What is the main difference between Yunji's offline stores and online e-commerce business, and how will they be integrated in the future?
A: Shanglue Xiao, CEO, explained that offline wellness stores are an extension of Yunji's existing customer base, targeting the 40 to 55 age group. Offline stores focus on community engagement within a 500-meter radius, allowing for direct user feedback. In the future, Yunji plans to integrate online sales and services with offline wellness users, particularly for promoting their own brands and organic food products.
Q: How does Yunji plan to address the evolving market conditions and maintain financial stability?
A: Yeqing Cui, Senior Financial Director, stated that Yunji continuously evaluates the profitability of its business lines and makes informed adjustments to uphold a solid financial foundation. The company focuses on effective cash management, narrowing operating and net losses, and optimizing its supply network to meet customer demand while prioritizing financial stability.
Q: Can you elaborate on Yunji's strategy for its health and wellness initiatives?
A: Shanglue Xiao, CEO, highlighted Yunji's commitment to democratizing access to healthy living, particularly in the organic food space. The company leverages its procurement expertise to make organic products more affordable and has established a robust quality control process through a proprietary health certification system. These initiatives have received positive feedback from users.
Q: What are the financial highlights for Yunji in the third quarter of 2024?
A: Yeqing Cui, Senior Financial Director, reported that total revenue was RMB86.6 million, with a gross margin of 54.1%. Operating expenses decreased to RMB73.9 million, and the net loss was RMB30 million. Yunji had RMB268.4 million in cash and cash equivalents, with no long-term bank loans or debt.
Q: How is Yunji leveraging technology to enhance its operations?
A: Shanglue Xiao, CEO, mentioned that Yunji is developing an innovative digital platform powered by AI tools to support integration and sharing of public resources on trading platforms. The AI applications focus on improving customer service, generating content, and enhancing operational efficiency, which helps lower costs and improve service reliability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
