Yunji Announces Second Quarter 2024 Unaudited Financial Results

Core Viewpoint - Yunji Inc. reported a significant decline in total revenues for Q2 2024, primarily due to soft consumer confidence and strategic adjustments in product selection and supplier optimization, while also focusing on enhancing its digital presence and offline initiatives to cater to the mature adult demographic [2][3][4]. Financial Performance - Total revenues for Q2 2024 were RMB106.0 million (US$14.6 million), down from RMB167.1 million in Q2 2023, representing a decrease of approximately 36.5$11.4 million), compared to RMB131.2 million in the same period of 2023, a decline of about 36.7% [4]. - Marketplace business revenues decreased to RMB21.1 million (US$2.9 million) from RMB34.3 million, a drop of approximately 38.4$0.3 million) from RMB1.6 million [4]. Cost and Expenses - Total cost of revenues decreased by 30.0% to RMB56.6 million (US$7.8 million), accounting for 53.4$10.1 million) from RMB110.8 million in the same period of 2023 [5]. - Fulfillment expenses decreased by 30.9% to RMB20.7 million (US$2.8 million), while sales and marketing expenses dropped by 35.0$3.0 million) [6]. Profitability - Loss from operations was RMB23.1 million (US$3.2 million), compared to RMB11.8 million in Q2 2023 [8]. - Financial income, net was RMB10.9 million (US$1.5 million), a recovery from a financial loss of RMB12.7 million in the same period of 2023 [8]. - Net loss narrowed to RMB11.9 million (US$1.6 million) from RMB41.5 million in Q2 2023, indicating improved financial performance [8]. - Adjusted net loss (non-GAAP) was RMB9.7 million (US$1.3 million), compared to RMB39.8 million in the same period of 2023 [8]. Strategic Initiatives - The company is enhancing its focus on short videos and livestreaming while integrating offline initiatives to broaden its customer base and increase repeat purchases [3]. - Yunji is diversifying its product mix to better serve the mature adult demographic, reflecting its commitment to adaptability and sustainable growth [3]. - The company plans to construct a new headquarters in Hangzhou, with an expected total investment of approximately RMB600.0 million, funded through cash on hand and bank financing [30].