Yunji Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

, /PRNewswire/ -- Yunji Inc. ("Yunji" or the "Company") (NASDAQ: YJ), a leading membership-based social e-commerce platform, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024[1]. Fourth Quarter 2024 Highlights Total revenues in the fourth quarter of 2024 were RMB97.1 million (US$13.3 million), compared with RMB149.1 million in the same period of 2023. The change was primarily due to soft consumer confidence and the Company's continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, which had a near-term impact on sales. Repeat purchase rate[2] in the twelve months ended December 31, 2024 was 71.9%. Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, "As we navigate the current market landscape, we are making progress in repositioning Yunji as the leading platform for organic health products. We have focused our operations on high-margin, high-repeat purchase categories, particularly organic health foods and nutritional products. In 2025, we aim to transform Yunji into an experiential health and wellness destination through our expanding health-focused ecosystem." "In the fourth quarter, we optimized our cost structure by refining our staff structure and significantly reducing fulfillment and technology expenses year-over-year. As we enter 2025, we will maintain financial discipline while investing strategically to drive sustainable growth and improve profitability." said Mr. Yeqing Cui, Senior Financial Director of Yunji. Fourth Quarter 2024 Unaudited Financial Results Total revenues were RMB97.1 million (US$13.3 million), compared with RMB149.1 million in the same period of 2023. This change was primarily due to soft consumer confidence and the Company's continued strategy to refine its product selection across all categories and optimize its selection of suppliers and merchants, which had a near-term impact on sales. Revenues from sales of merchandise were RMB75.5 million (US$10.3 million), compared with RMB112.3 million in the same period of 2023. Revenues from the marketplace business were RMB19.4 million (US$2.7 million), compared with RMB34.3 million in the same period of 2023. Other revenues were RMB2.2 million (US$0.3 million), compared with RMB2.5 million in the same period of 2023. Total cost of revenues decreased by 36.9% to RMB50.2 million (US$6.9 million), or 51.7% of total revenues, from RMB79.6 million, or 53.4% of total revenues, in the same period of 2023. The decrease was primarily attributable to the change in merchandise sales, for which revenues and cost of revenues are recognized on a gross basis. Total cost of revenues, which primarily comprises the costs related to the sales of merchandise, decreased accordingly in the fourth quarter of 2024. Total operating expenses increased by 14.9% to RMB126.2 million (US$17.3 million) from RMB109.8 million in the same period of 2023. Fulfillment expenses decreased by 33.9% to RMB16.4 million (US$2.3 million), or 16.9% of total revenues, from RMB24.8 million, or 16.6% of total revenues, in the same period of 2023. The decrease was primarily due to (i) reduced personnel costs as a result of staffing structure refinements, (ii) reduced warehousing and logistics expenses due to lower merchandise sales, and (iii) decreased service fees charged by third-party payment settlement platforms. Sales and marketing expenses increased by 6.0% to RMB30.2 million (US$4.1 million), or 31.1% of total revenues, from RMB28.5 million, or 19.1% of total revenues, in the same period of 2023. The increase was primarily due to an increase in business promotion expenses. Technology and content expenses decreased by 29.2% to RMB8.5 million (US$1.2 million), or 8.8% of total revenues, from RMB12.0 million, or 8.1% of total revenues, in the same period of 2023. The decrease was primarily due to (i) the reduction in personnel costs as a result of staffing structure refinements, and (ii) reduced server costs. General and administrative expenses increased by 59.8% to RMB71.1 million (US$9.7 million), or 73.2% of total revenues, from RMB44.5 million, or 29.8% of total revenues, in the same period of 2023. The increase was primarily due to (i) an increase in severance pay as a result of staffing structure refinements, and (ii) an impairment of long-lived assets other than goodwill, partially offset by a decrease in an allowance for credit losses. Loss from operations was RMB77.7 million (US$10.6 million), compared with RMB39.5 million in the same period of 2023. Financial loss, net was RMB2.6 million (US$0.4 million), compared with financial loss, net of RMB23.4 million in the same period of 2023, primarily due to a decrease in the fair value changes of equity securities investments. Net loss was RMB85.0 million (US$11.7 million), compared with RMB65.9 million in the same period of 2023. Adjusted net loss (non-GAAP)[3] was RMB84.5 million (US$11.6 million), compared with RMB65.0 million in the same period of 2023. Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.04 (US$0.01), compared with RMB0.03 in the same period of 2023. Fiscal Year 2024 Unaudited Financial Results Total revenues were RMB417.7 million (US$57.2 million), compared with RMB640.2 million in the full year of 2023. The decrease was primarily due to the same factors that led to the quarterly decrease. Revenues from sales of merchandise were RMB330.5 million (US$45.3 million), compared with RMB500.7 million in the full year of 2023. Revenues from the marketplace business were RMB79.5 million (US$10.9 million), compared with RMB130.2 million in the full year of 2023. Other revenues were RMB7.7 million (US$1.0 million), compared with RMB9.3 million in the full year of 2023. Total cost of revenues decreased by 36.5% to RMB211.3 million (US$28.9 million) from RMB332.8 million in the full year of 2023. This decrease was primarily attributable to the same factors that led to the quarterly decrease. Total operating expenses were RMB349.2 million (US$47.8 million), compared with RMB403.0 million in the full year of 2023. Fulfillment expenses decreased by 29.2% to RMB76.1 million (US$10.4 million), or 18.2% of total revenues, from RMB107.5 million, or 16.8% of total revenues, in the full year of 2023. The decrease was primarily due to the same factors that led to the quarterly decrease. Sales and marketing expenses decreased by 19.8% to RMB97.0 million (US$13.3 million), or 23.2% of total revenues, from RMB121.0 million, or 18.9% of total revenues, in the full year of 2023. The decrease was mainly due to the reduction in member management fees. Technology and content expenses decreased by 14.8% to RMB45.6 million (US$6.3 million), or 10.9% of total revenues, from RMB53.5 million, or 8.4% of total revenues, in the full year of 2023. The decrease was primarily due to the same factors that led to the quarterly decrease. General and administrative expenses increased by 7.9% to RMB130.5 million (US$17.9 million), or 31.2% of total revenues, from RMB121.0 million, or 18.9% of total revenues, in the full year of 2023. The increase was primarily due to the same factors that led to the quarterly decrease. Loss from operations was RMB136.3 million (US$18.7 million), compared with RMB80.6 million in the full year of 2023. Financial income, net was RMB17.3 million (US$2.4 million), compared with financial loss, net of RMB60.2 million in the full year of 2023, primarily due to an increase in the fair value changes of equity securities investments. Net loss was RMB123.1 million (US$16.9 million), compared with RMB165.1 million in the full year of 2023. Adjusted net loss[3] was RMB120.7 million (US$16.5 million), compared with RMB166.0 million in the full year of 2023. Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.06 (US$0.01), compared with RMB0.08 in the full year of 2023. Use of Non-GAAP Financial Measures In evaluating the business, the Company considers and uses adjusted net loss as a supplemental measure to review and assess operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net loss as net loss excluding share-based compensation. The Company presents adjusted net loss because it is used by management to evaluate operating performance and formulate business plans. Adjusted net loss enables management to assess operating performance without considering the impact of share-based compensation recorded under ASC 718, "Compensation-Stock Compensation." The Company also believes that the use of this non-GAAP measure facilitates investors' assessment of operating performance. This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net loss is that it does not reflect all items of income and expense that affect the Company's operations. Share-based compensation has been and may continue to be incurred in Yunji's business and is not reflected in the presentation of adjusted net loss. Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Yunji encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. For more information on the non-GAAP financial measures, please see the table captioned "Reconciliation of Non-GAAP Measures to the Most Directly Comparable Financial Measures" set forth at the end of this press release. Conference Call The Company will host a conference call on Monday, April 21, 2025 at 7:30 A.M. Eastern Time or 7:30 P.M. Beijing/Hong Kong Time to discuss its earnings. Listeners may access the call by dialing the following numbers: International: 1-412-902-4272 United States Toll Free: 1-888-346-8982 Mainland China Toll Free: 4001-201203 Hong Kong Toll Free: 800-905945 Conference ID: Yunji Inc. A telephone replay of the call will be available after the conclusion of the conference call for one week. Dial-in numbers for the replay are as follows: United States Toll Free 1-877-344-7529 International 1-412-317-0088 Replay Access Code 1068073 Safe Harbor Statements This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "confident," "potential," "continue" or other similar expressions. Among other things, the quotations from management in this announcement, as well as Yunji's strategic and operational plans, contain forward-looking statements. Yunji may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Yunji's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yunji's growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in China's e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of China's e-commerce market; PRC governmental policies and regulations relating to Yunji's industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Yunji's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Yunji undertakes no obligation to update any forward-looking statement, except as required under applicable law. About Yunji Inc. Yunji Inc. is a leading social e-commerce platform in China that has pioneered a unique, membership-based model to leverage the power of social interactions. The Company's e-commerce platform offers high-quality products at attractive prices across a wide variety of categories catering to the day-to-day needs of Chinese consumers. In addition, the Company uses advanced technologies including big data and artificial intelligence to optimize user experience and incentivize members to promote the platform as well as share products with their social contacts. Through deliberate product curation, centralized merchandise sourcing, and efficient supply chain management, Yunji has established itself as a trustworthy e-commerce platform with high-quality products and exclusive membership benefits, including discounted prices. For more information, please visit https://investor.yunjiglobal.com/ Investor Relations Contact Yunji Inc.Investor RelationsEmail: [email protected]Phone: +1 (646) 224-6957 ICR, LLCRobin YangEmail: [email protected]Phone: +1 (646) 224-6957 YUNJI INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data, unless otherwise noted) As of December 31, 2023 December 31, 2024 RMB RMB US$ ASSETS Current Assets Cash and cash equivalents 517,542 219,365 30,053 Restricted cash 27,169 23,467 3,215 Short-term investments 7,195 - - Accounts receivable, net 64,312 56,233 7,704 Advance to suppliers 14,058 9,810 1,344 Inventories, net 42,716 29,448 4,034 Amounts due from related parties 1,361 662 91 Prepaid expenses and other current assets[4] 134,247 177,187 24,275 Total current assets 808,600 516,172 70,716 Non-current assets Property and equipment, net 175,451 205,450 28,147 Land use rights, net[5] - 174,437 23,898 Long-term investments 364,159 364,534 49,941 Operating lease right-of-use assets, net 16,507 13,809 1,892 Other non-current assets[6] 189,067 78,050 10,692 Total non-current assets 745,184 836,280 114,570 Total assets 1,553,784 1,352,452 185,286 YUNJI INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except for share and per share data, unless otherwise noted) As of December 31, 2023 December 31, 2024 RMB RMB US$ LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable 96,782 54,678 7,491 Deferred revenue 9,412 8,596 1,178 Incentive payables to members[7] 124,889 66,039 9,047 Member management fees payable 4,373 1,263 173 Other payable and accrued liabilities 109,200 126,177 17,286 Amounts due to related parties 3,535 1,645 225 Operating lease liabilities - current 3,376 3,845 527 Total current liabilities 351,567 262,243 35,927 Non-current liabilities Operating lease liabilities 11,122 7,808 1,070 Other non-current liabilities - 4,355 597 Total non-current liabilities 11,122 12,163 1,667 Total Liabilities 362,689 274,406 37,594 YUNJI INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except for share and per share data, unless otherwise noted) As of December 31, 2023 December 31, 2024 RMB RMB US$ Shareholders' equity Ordinary shares 70 70 10 Less: Treasury stock (116,108) (113,334) (15,527) Additional paid-in capital 7,328,680 7,328,336 1,003,978 Statutory reserve 16,254 16,726 2,291 Accumulated other comprehensive income 85,291 93,145 12,761 Accumulated deficit (6,123,971) (6,247,557) (855,911) Total Yunji Inc. shareholders' equity 1,190,216 1,077,386 147,602 Non-controlling interests 879 660 90 Total shareholders' equity 1,191,095 1,078,046 147,692 Total liabilities and shareholders' equity 1,553,784 1,352,452 185,286 YUNJI INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (All amounts in thousands, except for share and per share data, unless otherwise noted) For the Three Months Ended For the Year Ended December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024 RMB RMB US$ RMB RMB US$ Revenues: Sales of merchandise, net 112,330 75,499 10,343 500,651 330,535 45,283 Marketplace revenue 34,259 19,451 2,665 130,188 79,466 10,887 Other revenues 2,558 2,173 298 9,370 7,650 1,048 Total revenues 149,147 97,123 13,306 640,209 417,651 57,218 Operating cost and expenses: Cost of revenues (79,613) (50,240) (6,883) (332,774) (211,311) (28,949) Fulfilment (24,845) (16,372) (2,243) (107,472) (76,126) (10,429) Sales and marketing (28,478) (30,173) (4,134) (121,039) (96,965) (13,284) Technology and content (12,033) (8,492) (1,163) (53,490) (45,627) (6,251) General and administrative (44,477) (71,146) (9,747) (120,951) (130,462) (17,873) Total operating cost and expenses (189,446) (176,423) (24,170) (735,726) (560,491) (76,786) Other operating income 780 1,650 226 14,898 6,544 896 Loss from operations (39,519) (77,650) (10,638) (80,619) (136,296) (18,672) Financial (loss)/ income, net (23,427) (2,578) (353) (60,226) 17,333 2,375 Foreign exchange income/(loss), net 723 (2,608) (357) (6,743) 2,127 291 Other non-operating income/(loss), net 31 158 22 (2,405) 785 108 Loss before income tax expense, and equity in loss of affiliates, net of tax (62,192) (82,678) (11,326) (149,993) (116,051) (15,898) Income tax expense (1,328) (368) (50) (7,851) (2,009) (275) Equity in loss of affiliates, net of tax (2,331) (1,998) (274) (7,276) (5,061) (693) Net loss (65,851) (85,044) (11,650) (165,120) (123,121) (16,866) Less: net income/(loss) attributable to non-controlling interests shareholders 11 9 1 9 (11) (2) Net loss attributable to YUNJI INC. (65,862) (85,053) (11,651) (165,129) (123,110) (16,864) YUNJI INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED) (All amounts in thousands, except for share and per share data, unless otherwise noted) For the Three Months Ended For the Year Ended December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024 RMB RMB US$ RMB RMB US$ Net loss attributable to ordinary shareholders (65,862) (85,053) (11,651) (165,120) (123,110) (16,864) Net loss (65,851) (85,044) (11,650) (165,120) (123,121) (16,866) Other comprehensive income Foreign currency translation adjustment (10,302) 12,023 1,647 22,178 7,854 1,076 Total comprehensive loss (76,153) (73,021) (10,003) (142,942) (115,267) (15,790) Less: total comprehensive income/(loss) attributable to non-controlling interests shareholders 11 9 1 9 (11) (2) Total comprehensive loss attributable to YUNJI INC. (76,164) (73,030) (10,004) (142,951) (115,256) (15,788) Net loss attributable to ordinary shareholders (65,862) (85,053) (11,651) (165,129) (123,110) (16,864) Weighted average number of ordinary shares used in computing net loss per share, basic and diluted 1,966,998,532 1,968,797,989 1,968,797,989 1,971,108,505 1,967,498,669 1,967,498,669 Net loss per share attributable to ordinary shareholders Basic (0.03) (0.04) (0.01) (0.08) (0.06) (0.01) Diluted (0.03) (0.04) (0.01) (0.08) (0.06) (0.01) YUNJI INC. NOTES TO UNAUDITED FINANCIAL INFORMATION (All amounts in thousands, except for share and per share data, unless otherwise noted) For the Three Months Ended For the Year Ended December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024 RMB RMB US$ RMB RMB US$ Share-based compensation expenses included in: Technology and content 401 349 48 1,554 1,450 198 General and administrative 377 164 22 503 774 106 Fulfillment 46 35 5 (2,525) 92 13 Sales and marketing 57 35 5 (417) 114 16 Total 881 583 80 (885) 2,430 333 YUNJI INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE FINANCIAL MEASURES (All amounts in thousands, except for share and per share data, unless otherwise noted) For the Three Months Ended For the Year Ended December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024 RMB RMB US$ RMB RMB US$ Reconciliation of Net Loss to Adjusted Net Loss: Net loss (65,851) (85,044) (11,650) (165,120) (123,121) (16,866) Add: Share-based compensation 881 583 80 (885) 2,430 333 Adjusted net loss (64,970) (84,461) (11,570) (166,005) (120,691) (16,533) [1]. This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2993 to US$1.00, the exchange rate in effect as of December 31, 2024 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.[2]. "Repeat purchase rate" in a given period is calculated as the number of transacting members who purchased not less than twice divided by the total number of transacting members during such period. "Transacting member" in a given period refers to a member who successfully promotes Yunji's products to generate at least one order or places at least one order on Yunji's platform, regardless of whether any product in such order is ultimately sold or delivered or whether any product in such order is returned. "Repeat purchase rate" only considers orders placed through the Company's app. Repeat purchases made through the Company's mini-programs are excluded from the calculation.[3]. Adjusted net loss is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expense. See "Reconciliation of Non-GAAP Measures to the Most Directly Comparable Financial Measures" set forth at the end of this press release.[4]. As of December 31, 2024, Short-term loan receivables of amount RMB149,570 were included in the prepaid expenses and other current assets balance, which represent the principal and interest to be collected on loans provided by the Group to third-party companies.[5]. In June 2024, the Company won the bid for a parcel of land located in Xiaoshan District, Hangzhou, China, covering approximately 10 thousand square meters (the "Hangzhou Land Parcel") and entered into an agreement with the local government to acquire the land use right of the Hangzhou Land Parcel for an aggregate consideration of approximately RMB171.5 million. In July 2024, the Company obtained the certificate of the land use right and carried the land use right at cost less accumulated amortization and impairment losses, if any. The Company intends to construct a new office building on the Hangzhou Land Parcel to use it as its new headquarters and also lease offices to external parties. The total amount for the land acquisition and office building construction is expected to be approximately RMB600.0 million. The Company intends to fund the land acquisition and building construction through cash on hand and bank financing.[6]. Impairment of long-lived assets other than goodwill recognized for the years ended December 31, 2023 and 2024 was nil and RMB26.1 million, respectively, which was recorded in general and administrative expenses.[7]. As of December 31, 2024, the decrease in incentive payables was primarily due to derecognition of long-aged payables to inactive members. SOURCE Yunji Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Yunji Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results

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