Loading...
01/11 03:08
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals significant revenue decline, increased operating losses, and cash concerns, indicating poor financial health. Despite efforts in product development and market strategy, the declining consumer confidence and ineffective cost management have led to a deteriorating financial position. The lack of positive guidance and absence of a shareholder return plan further contribute to a negative outlook. With no market cap information, assuming a small-cap impact, the stock is likely to experience a strong negative reaction.
Total Revenue RMB 158.3 million compared to RMB 233.8 million a year ago, a decrease due to softer consumer confidence and ongoing strategy to refine product selection and optimize supply and merchant bases.
Revenues from Sales of Merchandise RMB 131.7 million, part of the total revenue decline.
Revenues from Marketplace Business RMB 24.5 million, part of the total revenue decline.
Gross Margin 47.3%, remained relatively solid due to sustained customer loyalty and effective product curation emphasizing high margin.
Fulfillment Expenses RMB 20.6 million, decreased from RMB 42.6 million a year ago, driven by lower warehousing and logistics costs and reduced personnel expenses.
Sales and Marketing Expenses RMB 50.1 million compared to RMB 47.5 million a year ago, increased due to higher member management fees and personnel costs for market expansion, partially offset by lower advertising expenses.
Technology and Content Expenses RMB 15.3 million compared to RMB 25.5 million a year ago, decreased due to reduced personnel costs from staffing structure optimization.
General and Administrative Expenses RMB 93.4 million compared to RMB 33.5 million a year ago, increased due to higher allowance for credit losses, partly offset by lower professional service expenses and personnel costs. Excluding one-time loss, G&A expenses decreased by 35.6%.
Total Operating Expenses RMB 179.4 million compared to RMB 149.1 million a year ago, reflecting increased G&A expenses.
Loss from Operations RMB 100.4 million compared to RMB 32.4 million a year ago, increased due to higher operating expenses.
Net Loss RMB 100.7 million compared to RMB 8 million a year ago, increased due to higher operating expenses.
Adjusted Net Loss RMB 100.5 million compared to RMB 6.7 million a year ago, increased due to higher operating expenses.
Basic and Diluted Net Loss per Share RMB 0.05 compared to net income per share in the same period of 2024.
Cash and Cash Equivalents RMB 217.1 million as of January 30, 2025, compared to RMB 242.8 million as of December 31, 2024, reflecting adequate coverage for payable obligations.
Youjiang Organic Milk: Achieved RMB 5 million in sales at launch, establishing Yunji's health-focused brand awareness.
Slimming Coffee: Generated over RMB 10 million in sales.
Probiotic Bolus: Reached nearly RMB 7 million in sales.
Freeze-dried Sea Buckthorn Powder: Generated more than RMB 5 million in sales.
SUYE PRO-XLANE Firming Essence Lotion: Achieved over RMB 4 million in sales at launch, with 32% of buyers being returning dormant users.
SUYE PRO-XLANE Firming Series: Including creams, lotion, and essences, generated sales exceeding RMB 10 million.
Expansion of Public Domain Channels: Upgraded Tmall infrastructure, partnered with top influencers for live streaming sales, and enhanced WeChat channel content. WeChat channel transaction volume ranks higher than 92% of peers.
Community Group Leader Channels: Focused on placing organic foods in community group leaders' stores to empower leaders and expand reach.
Cost Optimization: Fulfillment expenses decreased due to lower warehousing and logistics costs. Technology and content expenses reduced due to staffing structure optimization.
Gross Margin: Maintained at 47.3% due to customer loyalty and high-margin product curation.
Organic Health Strategy: Centered on organic health positioning, aligning with the Healthy China 2030 initiative for long-term sustainability.
Tea Therapy Business: Incubation phase with 50% participation rate and 90% of users purchasing main products, supporting organic health image and product sales.
Market Conditions and Consumer Confidence: The company experienced a decline in total revenue due to weakened consumer confidence and overall market conditions, which pose challenges to its operations and financial performance.
Revenue Decline: Total revenue decreased significantly from RMB 233.8 million to RMB 158.3 million year-over-year, primarily due to softer consumer confidence and strategic adjustments in product selection and supply chain optimization.
Operating Loss: The company reported a net loss of RMB 100.7 million compared to RMB 8 million a year ago, indicating a significant deterioration in financial performance.
Increased General and Administrative Expenses: General and administrative expenses rose sharply to RMB 93.4 million from RMB 33.5 million a year ago, driven by a high allowance for credit losses, which could strain financial resources.
Supply Chain and Merchant Base Optimization: Ongoing efforts to refine product selection and optimize supply and merchant bases have impacted sales, potentially disrupting operations and customer satisfaction.
Community Retail Challenges: The rapid growth of internet retail is creating challenges for community retail group leaders, who are shifting towards private domain e-commerce, potentially affecting the company's community-based sales strategy.
Cash and Liquidity Concerns: Cash and cash equivalents decreased from RMB 242.8 million to RMB 217.1 million, which may limit the company's ability to manage obligations and invest in growth opportunities.
Future product expansion: Yunji plans to expand its organic health product line, building on the success of its flagship product, Youjiang Organic Milk, and other health-focused products.
Market penetration strategy: The company aims to enhance its presence in the retail market through community group leaders and public domain channels, including Tmall and WeChat.
Tea therapy program growth: Yunji's Jianxin Tea Therapy business is in the incubation phase, with plans to leverage its strong customer loyalty and expand its user base, including high-net-worth individuals.
Focus on gross margin improvement: The company is committed to improving its gross margin, aiming to achieve breakeven and strengthen its financial position.
Channel and brand development: Yunji is upgrading its Tmall infrastructure, partnering with top influencers for live streaming sales, and enhancing WeChat channel content to expand public domain sales.
Operational efficiency: Yunji will continue optimizing its cost structure and managing assets efficiently to support long-term sustainable growth.
The selected topic was not discussed during the call.
The earnings call reveals significant revenue decline, increased operating losses, and cash concerns, indicating poor financial health. Despite efforts in product development and market strategy, the declining consumer confidence and ineffective cost management have led to a deteriorating financial position. The lack of positive guidance and absence of a shareholder return plan further contribute to a negative outlook. With no market cap information, assuming a small-cap impact, the stock is likely to experience a strong negative reaction.
The earnings call summary indicates a decline in revenue, gross margin, and increased net loss, suggesting financial struggles. The Q&A section highlights a new product with potential, but lacks concrete sales projections. The absence of a share repurchase program and increased operational costs further contribute to a negative outlook. Despite potential in new product offerings, the overall financial health appears weak, leading to a likely negative stock price movement.
The earnings call reveals declining revenues, increased losses, and rising expenses, indicating financial struggles. Despite a focus on high-margin products and breakeven goals, the lack of a share repurchase program or dividend hikes, coupled with competitive and regulatory pressures, further dampens sentiment. The Q&A highlights new product launches but lacks concrete sales projections, adding uncertainty. The negative financial performance outweighs optimistic product developments, suggesting a likely negative stock price movement in the short term.
Yunji's earnings call presents mixed signals: a significant revenue decline and ongoing losses despite cost-cutting measures and strong gross margins. The lack of shareholder return initiatives and unclear management responses in the Q&A section add to the uncertainty. While there is optimism in offline expansion and product development, the absence of a clear strategy to integrate online and offline services and the economic challenges faced suggest a negative sentiment. The market is likely to react negatively over the next two weeks, especially given the revenue drop and lack of guidance.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
