Yunji, Inc. Q1 FY2024 earnings call

• The first quarter is traditionally an off-peak season for e-commerce, but Yunji refined operations and maintained a solid growth margin. - Unveiled initiatives like providing a holistic healthcare solution, extending into offline communities to establish wellness spaces. - Private label beauty brands SUYE and P&S rolled out new products tailored for mature skin. - Actively extended marketing partnerships across various external channels, using short videos and live streaming. - Streamlined healthcare manufacturing with cutting-edge technology and natural ingredients, innovated vertical community services with AI applications. - Evolved training system to cultivate professional health nutritionists. - Integrated apparel with short videos and live streaming, developed a video channel business model, and piloted an incubation program for video channel leaders.

Total revenues for the first quarter of 2024 were RMB 128 million. Revenues from sales of merchandise were RMB 102 million, accounting for approximately 79.7% of total revenues, and revenue from the marketplace business was RMB 24 million, making up about 18.75% of total revenues. The gross margin remained relatively solid at 49.4%. Operations expenses decreased from RMB 85 million in the same period of 2023 to RMB 76 million in the first quarter of 2024. Net income was RMB 4 million compared to a net loss of RMB 23 million in the same period last year, while adjusted net income was RMB 3 million versus an adjusted net loss of RMB 27 million a year ago.

• Focus on further enhancing efficiency, strengthening the company's resilience and adaptability. - Positioned to effectively address future challenges and seize emerging opportunities in the evolving economic landscape.

Forward-looking statements are based on current expectations and market conditions, subject to known and unknown risks, uncertainties, and other factors in Yunji’s industry. Detailed discussion of risks can be found in the company's latest document filed with the U.S. SEC.

Q: The management just mentioned our progress in short video and live streaming. Could you share more details about how we differ from other platforms in this area?

A: Thank you for your question. Firstly, we will select every commodity of an oil category and ensure they are cost-effective. We do not resort to selling low-priced, low-quality clearance items to draw traffic. Secondly, we are not only content creators but also developers of numerous commodities. Our team engages from the inception of the product project, actively participating in the traceability of the origin, production and selection of packaging materials. This hands-on approach creates a deeper understanding of the commodities and a more tangible grasp of the entire commodity chain compared to other content producers. At the most critical human level, Yunji's short video strategy in comprising both content production and distribution is rooted in an ordinary people-centric approach, facilitating individual entrepreneurship and rendering our content more accessible. Also, all these have differentiated us from other competitors.