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Yunji Inc. Announces Financial Results for Q4 and Fiscal Year 2024

Yunji Inc. (NASDAQ: YJ), a notable player in the realm of membership-based social e-commerce, has recently disclosed its financial outcomes for the fourth quarter and the entirety of fiscal year 2024, reflecting a significant shift in strategy as the company positions itself within the health product segment.

Q4 2024 Financial Overview

In the fourth quarter of 2024, Yunji recorded total revenues of RMB 97.1 million (approximately US$ 13.3 million), a considerable decline compared to RMB 149.1 million from the same period in 2023. This decline can be attributed to diminished consumer confidence and the company's ongoing efforts to streamline its product offerings and supplier relationships, which had an immediate effect on sales.

The repeat purchase rate for the twelve months leading up to December 31, 2024, was noted at 71.9%, indicating a steady base of returning customers despite the revenue drop.

Comments from Leadership

Mr. Shanglue Xiao, the Chairman and Chief Executive Officer, commented on the company's current navigational strategies, stating, "We're making concerted efforts to reposition Yunji as the principal platform for organic health products. Our operational focus is shifting towards high-margin categories, specifically organic health foods and nutritional products. Our goal for 2025 is to transform Yunji into a premier health and wellness destination through an expanding ecosystem centered around health."

Mr. Yeqing Cui, the Senior Financial Director, further elaborated on the company’s restructuring, noting that there has been a strategic optimization of the cost structure, which has led to a marked reduction in fulfillment and technology expenses year-over-year. He emphasized, “Moving into 2025, we will uphold financial discipline while strategically investing to drive sustainable growth and enhance profitability.”

Detailed Financial Breakdown for Q4 2024

• - Merchandise Sales Revenue: RMB 75.5 million (US$ 10.3 million), a decline from RMB 112.3 million in Q4 2023.
• - Marketplace Revenue: RMB 19.4 million (US$ 2.7 million), down from RMB 34.3 million in the previous year.
• - Other Revenues: RMB 2.2 million (US$ 0.3 million), slightly decreased from RMB 2.5 million in Q4 2023.

Cost Analysis

Total cost of revenues saw a decrease of 36.9%, settling at RMB 50.2 million (US$ 6.9 million), which constituted 51.7% of total revenues. This reduction correlates directly with the dip in merchandise sales. Furthermore, operating expenses rose by 14.9% to RMB 126.2 million (US$ 17.3 million) compared to RMB 109.8 million in the same quarter of 2023.

Fulfillment expenses dropped by 33.9% to RMB 16.4 million (US$ 2.3 million), largely due to lower merchandise sales and a trimmed workforce. However, sales and marketing expenses climbed 6.0% to RMB 30.2 million (US$ 4.1 million), reflecting an uptick in promotional expenses.

Loss Figures

The loss from operations peaked at RMB 77.7 million (US$ 10.6 million), a stark contrast to RMB 39.5 million in the preceding year. The company also faced a net loss of RMB 85.0 million (US$ 11.7 million), surpassing the RMB 65.9 million net loss recorded in 2023.

Overview of Fiscal Year 2024

For the entire fiscal year 2024, Yunji's total revenues amounted to RMB 417.7 million (US$ 57.2 million), exhibiting a stark drop from RMB 640.2 million in 2023. Merchandising revenues stood at RMB 330.5 million (US$ 45.3 million) while the marketplace division generated RMB 79.5 million (US$ 10.9 million).

Yunji's total operating expenses for 2024 totaled RMB 349.2 million (US$ 47.8 million), a decline from RMB 403.0 million in the previous year. Despite a decrease in fulfillment and sales expenses, general and administrative expenses rose by 7.9% to RMB 130.5 million (US$ 17.9 million).

Conclusion and Forward-Thinking Statements

Looking into the future, Yunji Inc. envisions a recovery path bolstered by a reshaped product portfolio focusing on health and wellness. With leadership determined to cultivate a unique shopping experience, the e-commerce platform aims to maintain its client base while navigating through these challenging economic landscapes.

For more information on Yunji Inc.'s earnings call and financial details, interested parties are encouraged to visit Yunji Investor Relations.