#China #Hangzhou #financial results #E-Commerce #Yunji Inc.

Yunji Inc. Announces Financial Results for Second Half and Fiscal Year 2025

Yunji Inc., a prominent membership-based social e-commerce platform based in Hangzhou, China, has released its unaudited financial results for the second half of the fiscal year ending December 31, 2025. In light of its strategic transformation towards organic healthy living, the company reported total revenues of RMB 158.7 million (approximately USD 22.7 million) for the latter half of 2025, a decrease compared to RMB 183.8 million during the same period in 2024. This contraction in revenue primarily stems from Yunji's ongoing efforts to refine its product offerings across various categories, re-evaluating its supplier and merchant relationships, and consciously scaling back its marketplace operations.

Strategic Transformation and Resilience

Mr. Shanglue Xiao, Chairman and CEO of Yunji, emphasized the company’s focus on improving its offerings, referencing the impressive repeat purchase rate of 69.7% for the twelve months leading up to December 31, 2025. This high rate signals strong customer loyalty and the effectiveness of their curated product strategy. The CEO remarked, "We are committed to becoming a leader in the organic health space, aligning with China's health strategies while creating a trustworthy ecosystem that enhances consumer confidence through supply chain traceability and wellness services."

Financial Highlights

Moreover, the financial report highlights a notable improvement in the company's path towards profitability, with a net loss of RMB 32.6 million, significantly reduced from a loss of RMB 115.1 million in the same time frame of 2024. This progress is attributed to disciplined cost management and an emphasis on operational efficiency, as pointed out by Yunji’s Senior Financial Director, Ms. Nan Song.

Second Half 2025 Financial Results:

• - Revenue Distribution:

- Merchandise sales contributed RMB 136.4 million, down from RMB 145.5 million in H2 2024.
- Marketplace revenues were reported at RMB 22.1 million, a drop from RMB 34.3 million in the previous year.
- Other revenues also fell to RMB 0.2 million from RMB 4.0 million.

• - Cost Dynamics: Total costs of revenue saw a marginal increase of 3% to RMB 92.7 million, which constituted 58.4% of total revenue. This was primarily due to escalated merchandise sales. Operating expenses, however, experienced a large decrease of 43.8% to RMB 112.4 million, enabling further shifts toward profitability.
• - Operating Losses: The loss from operations was brought down to RMB 43 million from RMB 103.9 million during the prior year, showcasing a concerted effort to improve fiscal health.
• - Basic and diluted net loss per share for ordinary shareholders were reported at RMB 0.02, a decrease from RMB 0.06 in the same period last year.

Full Year 2025 Overview

For the entire fiscal year of 2025, total revenues dropped to RMB 317 million from RMB 417.7 million in 2024, affected by similar strategic shifts. Key figures include:

• - Merchandise sales amounted to RMB 268.1 million, while revenue from the marketplace business was noted at only RMB 46.6 million.
• - Operating losses for the full year reached RMB 143.4 million, illustrating ongoing challenges despite cost-cutting efforts that decreased total operating costs by a notable amount.

Moving Forward

As Yunji steps into 2026, the focus remains on expanding its health-oriented private labels and enhancing profitability through strategic customer acquisition channels. The company's commitment to evolving from a traditional e-commerce framework to a private label-led model represents both a challenge and an opportunity for future growth. With ongoing enhancements in product curation and a stable liquidity position, Yunji aims to generate substantial value for its members and sustain its competitive edge in China’s e-commerce market.

For investors and interested parties, Yunji will host a conference call to discuss these results in detail, reinforcing its commitment to transparency and continuous improvement.