Yunji Inc. Q2 FY2024 earnings call

• Yunji has been operating for nine years, aiming to be a long-term partner for users supporting family health.
• Plan to expand into offline communities, opened first offline store in July focusing on traditional Chinese medicine and wellness, targeting customers aged 41 to 55.
• Focus on organic grain and health products with curated selection, ensuring quality, reasonable prices, and value for users.
• Beauty business: SUYE celebrated 14th anniversary, focusing on anti-aging solutions with a comprehensive product line.
• Marketing innovation: Combining technology and AI with short video content creation, nurturing talent for original content.

Total revenues for the second quarter of 2024 were RMB106 million, compared to RMB167.1 million in the same period last year. Revenues from sales of merchandise were RMB83 million, and revenues from the marketplace business were RMB21.1 million. The gross margin remained relatively strong at 46.6%.

• Committed to improving operational efficiencies and adapting strategy to navigate market landscape.
• Ongoing improvements in inventory management and cost optimization.
• Confident in regaining momentum and driving long-term value for shareholders.

• Forward-looking statements based on current expectations and market conditions, involving known and unknown risks, uncertainties from the industry.
• Any forward-looking statements qualified by cautionary statements, risk factors, and SEC filings.

Q: Could you share more color from product traceability experience and how insights will be applied to product selection and operation at Yunji?

A: Thank you for the question. Shanglue Xiao mentioned traveling across the country almost every week for product traceability, emphasizing the need to personally explore to introduce authentic, cost-effective, and healthy products. Insights will be used to gain consumer trust, host offline events, and encourage product penetration among consumers to drive platform purchases.