Yunji Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

PR Newswire

HANGZHOU, China, April 21, 2025

HANGZHOU, China, April 21, 2025 /PRNewswire/ -- Yunji Inc. ("Yunji" or the "Company") $(YJ)$, a leading membership-based social e-commerce platform, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024([1]) .

Fourth Quarter 2024 Highlights

   -- Total revenues in the fourth quarter of 2024 were RMB97.1 million 
      (US$13.3 million), compared with RMB149.1 million in the same period of 
      2023. The change was primarily due to soft consumer confidence and the 
      Company's continued strategy to refine its product selection across all 
      categories and optimize its selection of suppliers and merchants, which 
      had a near-term impact on sales. 
 
   -- Repeat purchase rate[2] in the twelve months ended December 31, 2024 was 
      71.9%. 

Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, "As we navigate the current market landscape, we are making progress in repositioning Yunji as the leading platform for organic health products. We have focused our operations on high-margin, high-repeat purchase categories, particularly organic health foods and nutritional products. In 2025, we aim to transform Yunji into an experiential health and wellness destination through our expanding health-focused ecosystem."

"In the fourth quarter, we optimized our cost structure by refining our staff structure and significantly reducing fulfillment and technology expenses year-over-year. As we enter 2025, we will maintain financial discipline while investing strategically to drive sustainable growth and improve profitability." said Mr. Yeqing Cui, Senior Financial Director of Yunji.

Fourth Quarter 2024 Unaudited Financial Results

Total revenues were RMB97.1 million (US$13.3 million), compared with RMB149.1 million in the same period of 2023. This change was primarily due to soft consumer confidence and the Company's continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, which had a near-term impact on sales.

   -- Revenues from sales of merchandise were RMB75.5 million (US$10.3 million), 
      compared with RMB112.3 million in the same period of 2023. 
 
   -- Revenues from the marketplace business were RMB19.4 million (US$2.7 
      million), compared with RMB34.3 million in the same period of 2023. 
 
   -- Other revenues were RMB2.2 million (US$0.3 million), compared with RMB2.5 
      million in the same period of 2023. 

Total cost of revenues decreased by 36.9% to RMB50.2 million (US$6.9 million), or 51.7% of total revenues, from RMB79.6 million, or 53.4% of total revenues, in the same period of 2023. 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 cost of revenues, which primarily comprises the costs related to the sales of merchandise, decreased accordingly in the fourth quarter of 2024.

Total operating expenses increased by 14.9% to RMB126.2 million (US$17.3 million) from RMB109.8 million in the same period of 2023.

   -- Fulfillment expenses decreased by 33.9% to RMB16.4 million (US$2.3 
      million), or 16.9% of total revenues, from RMB24.8 million, or 16.6% of 
      total revenues, in the same period of 2023. The decrease was primarily 
      due to (i) reduced personnel costs as a result of staffing structure 
      refinements, (ii) reduced warehousing and logistics expenses due to lower 
      merchandise sales, and (iii) decreased service fees charged by 
      third-party payment settlement platforms. 
 
   -- Sales and marketing expenses increased by 6.0% to RMB30.2 million (US$4.1 
      million), or 31.1% of total revenues, from RMB28.5 million, or 19.1% of 
      total revenues, in the same period of 2023. The increase was primarily 
      due to an increase in business promotion expenses. 
 
   -- Technology and content expenses decreased by 29.2% to RMB8.5 million 
      (US$1.2 million), or 8.8% of total revenues, from RMB12.0 million, or 
      8.1% of total revenues, in the same period of 2023. The decrease was 
      primarily due to (i) the reduction in personnel costs as a result of 
      staffing structure refinements, and (ii) reduced server costs. 
 
   -- General and administrative expenses increased by 59.8% to RMB71.1 million 
      (US$9.7 million), or 73.2% of total revenues, from RMB44.5 million, or 
      29.8% of total revenues, in the same period of 2023. The increase was 
      primarily due to (i) an increase in severance pay as a result of staffing 
      structure refinements, and (ii) an impairment of long-lived assets other 
      than goodwill, partially offset by a decrease in an allowance for credit 
      losses. 

Loss from operations was RMB77.7 million (US$10.6 million), compared with RMB39.5 million in the same period of 2023.

Financial loss, net was RMB2.6 million (US$0.4 million), compared with financial loss, net of RMB23.4 million in the same period of 2023, primarily due to a decrease in the fair value changes of equity securities investments.

Net loss was RMB85.0 million (US$11.7 million), compared with RMB65.9 million in the same period of 2023.

Adjusted net loss (non-GAAP)([3]) was RMB84.5 million (US$11.6 million), compared with RMB65.0 million in the same period of 2023.

Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.04 (US$0.01), compared with RMB0.03 in the same period of 2023.

Fiscal Year 2024 Unaudited Financial Results

Total revenues were RMB417.7 million (US$57.2 million), compared with RMB640.2 million in the full year of 2023. The decrease was primarily due to the same factors that led to the quarterly decrease.

   -- Revenues from sales of merchandise were RMB330.5 million (US$45.3 
      million), compared with RMB500.7 million in the full year of 2023. 
 
   -- Revenues from the marketplace business were RMB79.5 million (US$10.9 
      million), compared with RMB130.2 million in the full year of 2023. 
 
   -- Other revenues were RMB7.7 million (US$1.0 million), compared with RMB9.3 
      million in the full year of 2023. 

Total cost of revenues decreased by 36.5% to RMB211.3 million (US$28.9 million) from RMB332.8 million in the full year of 2023. This decrease was primarily attributable to the same factors that led to the quarterly decrease.

Total operating expenses were RMB349.2 million (US$47.8 million), compared with RMB403.0 million in the full year of 2023.

   -- Fulfillment expenses decreased by 29.2% to RMB76.1 million (US$10.4 
      million), or 18.2% of total revenues, from RMB107.5 million, or 16.8% of 
      total revenues, in the full year of 2023. The decrease was primarily due 
      to the same factors that led to the quarterly decrease. 
 
   -- Sales and marketing expenses decreased by 19.8% to RMB97.0 million 
      (US$13.3 million), or 23.2% of total revenues, from RMB121.0 million, or 
      18.9% of total revenues, in the full year of 2023. The decrease was 
      mainly due to the reduction in member management fees. 
 
   -- Technology and content expenses decreased by 14.8% to RMB45.6 million 
      (US$6.3 million), or 10.9% of total revenues, from RMB53.5 million, or 
      8.4% of total revenues, in the full year of 2023. The decrease was 
      primarily due to the same factors that led to the quarterly decrease. 
 
   -- General and administrative expenses increased by 7.9% to RMB130.5 million 
      (US$17.9 million), or 31.2% of total revenues, from RMB121.0 million, or 
      18.9% of total revenues, in the full year of 2023. The increase was 
      primarily due to the same factors that led to the quarterly decrease. 

Loss from operations was RMB136.3 million (US$18.7 million), compared with RMB80.6 million in the full year of 2023.

Financial income, net was RMB17.3 million (US$2.4 million), compared with financial loss, net of RMB60.2 million in the full year of 2023, primarily due to an increase in the fair value changes of equity securities investments.

Net loss was RMB123.1 million (US$16.9 million), compared with RMB165.1 million in the full year of 2023.

Adjusted net loss([3]) was RMB120.7 million (US$16.5 million), compared with RMB166.0 million in the full year of 2023.

Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.06 (US$0.01), compared with RMB0.08 in the full year of 2023.

Use of Non-GAAP Financial Measures

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

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

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