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

Yunji's Financial Results for the First Half of 2025

On August 21, 2025, Yunji Inc. (NASDAQ: YJ), a prominent membership-driven social e-commerce platform, released its unaudited financial results for the six months ending June 30, 2025. This report highlights the company's ongoing challenges and strategies as it navigates a competitive e-commerce landscape.

Financial Performance Highlights

The total revenue for Yunji in the first half of 2025 amounted to RMB 158.3 million (approximately US$ 22.1 million), a significant decrease from RMB 233.8 million in the same period of the previous year. This decline is largely attributed to a decrease in consumer confidence and the company's continuing initiatives to refine its product offerings and optimize supplier relationships, which directly impacted sales figures.

The company reported a repeat purchase rate of 71.0% for the twelve months ending June 30, 2025, solidifying its focus on customer loyalty amidst market challenges.

Yunji's Chairman and CEO, Mr. Shanglue Xiao, stated, "Our strategic transformation towards becoming a trusted advocate for organic living is ongoing. We are committed to creating a portfolio that includes organic health products and immersive wellness experiences, deepening our customer engagement while concentrating on high-margin categories."

Cost Management and Profitability Efforts

Despite the revenue decline, Yunji has been working on optimizing its cost structure and ensuring efficient capital allocation. Ms. Nan Song, the Senior Financial Director, emphasized the company's commitment to financial discipline and profitability even as it invests in long-term sustainable growth.

The report noted that:

• - Total merchandise sales generated RMB 131.7 million (US$ 18.4 million) compared to RMB 185.0 million in 2024.
• - Marketplace revenue decreased to RMB 24.5 million (US$ 3.4 million) from RMB 45.2 million.
• - Overall, the cost of revenues saw a reduction of 31.2%, indicating Yunji's efforts to control its operational expenses by managing costs related to sales and fulfillment.

Operating Expenses and Loss

Operating expenses for the first half of 2025 increased 20.3%, totaling RMB 179.4 million (US$ 25.0 million). Notably, fulfillment expenses decreased significantly, down 51.7% to RMB 20.6 million, attributed to streamlined warehousing and logistics as well as personnel expenditures. However, expenses on technology and content dropped as a part of structural refinements, while general and administrative expenses saw a staggering increase of 178.6% mainly due to rising allowances for credit losses.

The loss from operations was recorded at RMB 100.4 million (US$ 14.0 million), up from a loss of RMB 32.4 million in 2024. Furthermore, the net loss amounted to RMB 100.7 million (US$ 14.1 million), compared to RMB 8.0 million in the same period last year. This highlights the challenging conditions Yunji faces in the marketplace.

Non-GAAP Financial Measures

Yunji uses adjusted net loss as a non-GAAP measure to evaluate its operational performance. The adjusted net loss for the first half of 2025 was RMB 100.5 million (US$ 14.0 million), excluding share-based compensation expenses. This measure helps management assess operational performance beyond the impacts of certain costs, providing transparency to investors about the company's operations.

Looking Forward

As Yunji continues through fiscal year 2025, it remains focused on refining its strategies and fortifying its market position. The upcoming conference call on August 21, 2025, will allow stakeholders to gain more insights into the company’s future outlook and operational adjustments.

Overall, Yunji’s first half 2025 results reflect both significant challenges and a recalibration of its business approach as it strives to enhance customer engagement and build a sustainable, value-driven e-commerce environment.