Yunji Inc. Q2 FY2025 earnings call

• Remained firmly anchored to organic health strategy. Centered on organic health positioning, with Youjiang Organic Milk as flagship product to shape brand image. - Other major products performed well, like slimming coffee, probiotic bolus, etc. - SUYE brand offers high-value products with positive market feedback, expanding public domain channels, upgrading Tmall infrastructure, partnering with top influencers for live streaming sales, and enhancing WeChat channels. - Jianxin Tea Therapy business in incubation, with progress in team building and user participation, and potential for business growth.

In the first half of 2025, total revenue was RMB 158.3 million, down from RMB 233.8 million in the same period last year. Revenues from sales of merchandise were RMB 131.7 million and from marketplace business were RMB 24.5 million. Youjiang Organic Milk achieved RMB 5 million in sales at launch. Slimming coffee had sales of over RMB 10 million. Probiotic bolus reached nearly RMB 7 million. Freeze-dried sea buckthorn powder and others generated more than RMB 5 million each. SUYE's PRO-XLANE FIRMING ESSENCE LOTION had over RMB 4 million in sales at launch, and the entire SUYE PRO-XLANE FIRMING Series generated sales exceeding RMB 10 million. Jianxin Tea Therapy business is in incubation, with a 100% tea therapy team built and frequent users having a 50% participation rate, and channel members booking through the program accounting for nearly 15% of all participants.

• Continue to expand brand influence, fully integrate organic health concept and optimize product mix. - Concentrate on continuously improving gross margin, aiming to achieve breakeven and strengthen overall financial position, prepared to manage future uncertainties and capture growth opportunities in evolving market environment.

• Market uncertainties and weakened consumer confidence led to slight decline in total revenue. - Rapid growth of internet retail poses new challenges for community retail group leaders.