Financial Data and Key Metrics Changes - Total revenues decreased to RMB167 million from RMB284 million year-over-year, with merchandise sales at RMB131 million and marketplace revenues at RMB34 million [15] - Gross margin improved to 51.6% compared to 40.6% a year ago, attributed to customer loyalty to private labels and effective product duration strategy [15] - Net loss increased to RMB42 million from RMB25 million year-over-year, with adjusted net loss at RMB40 million compared to RMB17 million a year ago [17] Business Line Data and Key Metrics Changes - The private-label meat products gained popularity, leading to notable levels of repeat purchases [6] - SUYE, the private label beauty brand, celebrated its 13th anniversary and launched new products, indicating growth in the beauty segment [8] - The healthcare brand, Qingziyang, reported sales exceeding RMB200 million, with a new product selling out within 31 minutes of launch [9] Market Data and Key Metrics Changes - The macro-environment remains challenging, with consumer sentiment and purchasing power needing additional momentum for recovery [13] - The company noted a shift in consumer preferences towards healthcare and nutritional products, which has positively impacted financial performance [13] Company Strategy and Development Direction - The company plans to enhance its supply chain to better address seasonal consumer demand and optimize marketing campaigns [5] - A focus on private-label products and a commitment to operational efficiency are central to the company's strategy [14] - The company aims to leverage AI technology for marketing and customer engagement, including digital human live-streaming initiatives [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of offline consumption and the company's adaptability to consumer trends [21] - The company is exploring new facilities for offline sales and emphasizes the flexibility provided by its private labels [22] Other Important Information - The Vice President of Finance announced resignation effective August 25, 2023, with responsibilities transitioning to the Senior Financial Director [19] Q&A Session Summary Question: Impact of Chinese government policies on offline transactions - Management supports national policies aimed at stimulating offline consumption and has adjusted strategies to align with consumer trends [21] - The company has hosted offline events to enhance consumer experience and product authenticity [21][22]
Yunji(YJ) - 2023 Q2 - Earnings Call Transcript