#China #Hangzhou #financial results #Yunji Inc. #social e-commerce

Yunji's Financial Results for First Half of 2026

Yunji Inc., a notable player in the realm of membership-based social e-commerce platforms, has unveiled its financial performance for the first six months of 2026. Despite facing a challenging consumer landscape in China, the company remains steadfast in its commitment to enhancing its business model and providing quality products to its members.

Key Highlights

Yunji's revenues for the first half of 2026 stood at RMB 96.3 million (approximately US$14.2 million), reflecting a significant decrease when compared to RMB 158.3 million during the same period in the previous year. The decline can primarily be attributed to decreased consumer spending and the company’s ongoing initiatives focused on refining its platform capabilities, enhancing the quality of private label products, and optimizing supplier selection.

One of the noteworthy aspects of Yunji’s performance was its repeat purchase rate, which reached an impressive 69.15% over the twelve months concluding on June 30, 2026. According to Mr. Shanglue Xiao, the Company’s Chairman and CEO, this metric reaffirms the strength of their relationships with members and highlights their strategic decision to discontinue partnerships with certain third-party merchants that did not align with upgraded quality standards.

Financial Insights

Yunji's commitment to sustainability and improved operational efficiency was evident as it successfully narrowed its net loss to RMB 72.4 million from RMB 100.7 million year-on-year. As of June 30, 2026, Yunji maintained a robust liquidity position with RMB 242.1 million across cash, cash equivalents, and short-term investments.

In more detail, revenues from merchandise sales accounted for RMB 82.5 million (US$12.2 million), compared to RMB 131.7 million from the previous year. Marketplace revenues also saw a drop, sitting at RMB 13.7 million (US$2.0 million), less than half of what was recorded in 2025.

The cost of revenues decreased by 31.9% to RMB 56.8 million (US$8.4 million), primarily due to reduced sales, resulting in a changed landscape for supplier incentive payables. Operating expenses were also meticulously trimmed, with total costs declining by 38.8% to RMB 109.7 million (US$16.2 million) compared to the previous year.

Strategic Outlook

In the face of the prevailing market conditions, Yunji has dialed back on unnecessary expenses and placed emphasis on enhancing user experience, maintaining operational agility, and solidifying its service aspects by focusing on product quality. Despite the year’s revenue challenges, the company exhibits a clear confidence in its strategic direction going forward.

Ms. Nan Song, Senior Financial Director, articulated that their strategic vision remains uninterrupted despite the temporary downturns in revenue: "We aim to further enhance our operating margin and drive sustainability towards long-term profitability."

Overall, while the first half of 2026 posed challenges for Yunji, the company’s proactive steps to improve operational efficiency and focus on quality could enable it to emerge stronger in the future. Investors and stakeholders eagerly await the forthcoming conference call scheduled for August 20, 2026, where further insights into their operational plans and financial performance are expected to be discussed.

As Yunji navigates through this transitional phase, its commitment to establishing a lasting impact on the social e-commerce landscape illustrates a resilience that may well pave the way for future growth opportunities.