Yunji, Inc. Q3 FY2024 earnings call

• On November 8, broke ground on the Yunji Innovation Center, an integrated facility for marketing, training, R&D, and operational teams. • Reinforced health and wellness as a key pillar of the 10-year strategy, leveraging procurement expertise to make organic products more affordable while maintaining quality, and established a proprietary quality control system. • Launched first wellness store in July and second in October, tapping into the 41-55 age demographic via word-of-mouth. • Private label brand SUYE celebrated 14th year, with accumulated sales exceeding RMB100 million in 2024, expanding in premium anti-aging segment. • Pushing forward with development of an AI-powered digital platform to enhance customer service, content generation, and operational efficiency.

Total revenue for the third quarter of 2024 was RMB86.6 million, compared to RMB145.1 million in the same period last year. Revenue from sales of merchandise was RMB70 million, and revenues from the marketplace business were RMB14.8 million. The gross margin remained relatively strong at 54.1% due to continued customer loyalty towards product labels and effective product curation strategy.

• Will continue to improve operational efficiencies and adjust strategies to navigate changing market landscape. • Confident that continuous enhancement of inventory management and cost optimization will position the company well for further growth through innovation and product refinement. • Aims to boost momentum and create long-term shareholder value.

Q: What is the main difference of offline stores and online e-commerce business? And how would these two businesses be combined in the future?

A: Offline wellness stores are an extension of Yunji's existing customer base, targeting the 40-55 age group. Offline business differs from online in focusing on offline communities within 500-meter radius, combining ground promotion with online campaigns. In future, after building loyalty on offline users, plan to integrate online sales and services, especially for own brands and organic food products, leveraging synergy between people and lab networks.