Yunji (YJ) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 declined to CNY 106 million, mainly due to softer consumer confidence and product and supplier optimization, with a repeat purchase rate of 73.5%.

• Focused on supporting users through life stages, expanding into the silver economy, and targeting mature adult demographics.

• Launched first offline wellness store in July, integrating online and offline services and emphasizing traditional Chinese medicine.

• Emphasized curated product selection, quality assurance, and product traceability, especially in food and health categories.

• Continued innovation in anti-aging beauty products and marketing through AI, short video content, and livestreaming.

Financial highlights

• Total revenue was CNY 106 million, down from CNY 167.1 million year-over-year.

• Gross margin was 46.6%.

• Net loss narrowed to CNY 11.9 million from CNY 41.5 million a year ago; adjusted net loss was CNY 9.7 million.

• Basic and diluted net loss per share were both CNY 0.01, compared to CNY 0.02 in the prior year.

• Total operating expenses decreased to CNY 73.3 million from CNY 110.8 million year-over-year.

Outlook and guidance

• Plans to prudently pursue growth opportunities while maintaining financial stability and adjusting business lines in response to market changes.

• Committed to enhancing operational efficiencies and adapting to market changes.

• Confident in regaining momentum and driving long-term shareholder value.