HANGZHOU, China, June 2, 2023
/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 first quarter
ended March 31,
2023[1].
First Quarter 2023 Highlights
- Total revenues in the first quarter of 2023 were
RMB178.7 million (US$26.0 million), compared with RMB342.6 million in the same period of 2022. The
change was primarily due to 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. Also, consumer confidence and spending power require
further momentum before witnessing a full recovery.
- Repeat purchase rate[2] in the twelve months
ended March 31, 2023 was 80.2%.
Mr. Shanglue Xiao, Chairman and Chief Executive Officer of
Yunji, said, "The first quarter marked a transitional phase as
China reopened, following a
challenging year in which we faced numerous obstacles. We
took proactive measures to address these challenges through a
series of strategic upgrades and realignments. Notably, we recorded
a repeat repurchase rate of 80% during the quarter, which
demonstrated the loyalty of our users and the strength and
popularity of our wide range of featured products. Looking ahead,
we will continue to operate flexibly while nimbly adapting and
responding to emerging trends as the consumer market recovers. At
the same time, we remain committed to developing innovative private
label products to reward our devoted users who have accompanied us
on this journey."
"Our continued efforts to optimize cost structures and enhance
efficiency have delivered significant results. We have successfully
generated RMB1.0 million
(US$0.1million) operating income and
narrowed our net losses by 37.8% in the first quarter of 2023.
Moving forward, we will continue to operate prudently and
efficiently, laying a solid foundation for our future development,"
said Mr. Peng Zhang, Yunji's Vice
President of Finance.
First Quarter 2023 Unaudited Financial Results
Total revenues were RMB178.7
million (US$26.0 million),
compared with RMB342.6 million in the
same period of 2022. This change was primarily due to 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 RMB143.0 million (US$20.8
million), compared with RMB290.5
million in the same period of 2022.
- Revenues from the marketplace business were RMB32.9 million (US$4.8
million), compared with RMB47.4
million in the same period of 2022.
- Other revenues were RMB2.8
million (US$0.4 million),
compared with RMB4.7 million in the
same period of 2022.
Total cost of revenues decreased by 51.1% to
RMB93.5 million (US$13.6 million), or 52.3% of total revenues,
from RMB191.3 million, or 55.8% of
total revenues, in the same period of 2022. The decrease was mainly
attributable to the change in merchandise sales, for which revenues
are recognized on a gross basis. Total cost of revenues was mainly
comprised of the costs related to the sales of merchandise in the
first quarter of 2023.
Total operating expenses decreased by 45.0% to
RMB85.3 million (US$12.4 million) from RMB154.9 million in the same period of 2022.
- Fulfillment expenses decreased by 44.6% to RMB27.1 million (US$3.9
million), or 15.2% of total revenues, from RMB48.9 million, or 14.3% of total revenues, in
the same period of 2022. The decrease was primarily due to (i)
reduced warehousing and logistics expenses due to lower merchandise
sales, (ii) reduced personnel costs as a result of staffing
structure refinements, and (iii) a decrease in share-based
compensation expenses.
- Sales and marketing expenses decreased by 41.6% to
RMB29.6 million (US$4.3 million), or 16.6% of total revenues, from
RMB50.7 million, or 14.8% of total
revenues, in the same period of 2022. The decrease was mainly due
to (i) the reduction in personnel costs as a result of staffing
structure refinements, (ii) a decrease in member management fees,
and (iii) reduced business promotion expenses.
- Technology and content expenses decreased by 44.7% to
RMB13.4 million (US$1.9 million), or 7.5% of total revenues, from
RMB24.1 million, or 7.0% of total
revenues, in the same period of 2022. The decrease was mainly due
to (i) the reduction in personnel costs as a result of staffing
structure refinements, and (ii) reduced cloud server costs.
- General and administrative expenses decreased by 51.4%
to RMB15.2 million (US$2.2 million), or 8.5% of total revenues, from
RMB31.2 million, or 9.1% of total
revenues, in the same period of 2022, primarily due to (i) reduced
personnel costs as a result of staffing structure refinements, (ii)
lower professional service fees, and (iii) a decrease in
share-based compensation expenses.
Income from operations was RMB1.0 million (US$0.1
million), compared with RMB2.4
million in the same period of 2022.
Financial loss, net was RMB22.2
million (US$3.2 million),
compared with RMB35.3 million in the
same period of 2022, primarily due to a continuous decline in the
fair value changes of equity securities investments.
Net loss was RMB22.9
million (US$3.3 million),
compared with RMB36.9 million in the
same period of 2022.
Adjusted net loss (non-GAAP)[3] was
RMB27.2 million (US$4.0 million), compared with RMB30.6 million in the same period of 2022.
Basic and diluted net loss per share attributable to
ordinary shareholders were both RMB0.01, compared with RMB0.02 in the same period of 2022.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses
adjusted net income/(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 income/(loss) as net income/(loss) excluding
share-based compensation.
The Company presents adjusted net income/(loss) because it is
used by management to evaluate operating performance and formulate
business plans. Adjusted net income/(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 income/(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 income/(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 Friday, June 2, 2023, 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
|
3419777
|
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
Relations
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957
ICR, LLC
Robin
Yang
Email: Yunji.IR@icrinc.com
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,
2022
|
|
March
31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
414,634
|
|
321,101
|
|
46,756
|
Restricted cash
|
|
42,109
|
|
34,940
|
|
5,088
|
Short-term
investments
|
|
212,003
|
|
211,695
|
|
30,825
|
Accounts receivable,
net (Allowance for
credit losses of
RMB16,762 and
RMB17,106,
respectively)
|
|
94,111
|
|
93,379
|
|
13,597
|
Advance to
suppliers
|
|
32,738
|
|
26,594
|
|
3,871
|
Inventories,
net
|
|
54,651
|
|
41,425
|
|
6,032
|
Amounts due from
related parties
|
|
202
|
|
1,907
|
|
278
|
Prepaid expenses and
other current assets[4]
(Allowance for credit
losses of
RMB14,510 and RMB9,427, respectively)
|
|
362,065
|
|
326,768
|
|
47,581
|
|
|
|
|
|
|
|
Total current assets
|
|
1,212,513
|
|
1,057,809
|
|
154,028
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property and equipment, net
|
|
168,928
|
|
169,878
|
|
24,736
|
Long-term
investments
|
|
414,325
|
|
411,663
|
|
59,943
|
Deferred tax
assets
|
|
-
|
|
-
|
|
-
|
Operating lease
right-of-use assets, net
|
|
231
|
|
221
|
|
32
|
Other non-current
assets (Allowance for
credit losses of
RMB2,091 and
RMB1,945,
respectively)
|
|
96,414
|
|
97,545
|
|
14,204
|
|
|
|
|
|
|
|
Total non-current assets
|
|
679,898
|
|
679,307
|
|
98,915
|
|
|
|
|
|
|
|
Total
assets
|
|
1,892,411
|
|
1,737,116
|
|
252,943
|
|
|
|
|
|
|
|
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,
2022
|
|
March
31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
138,903
|
|
94,794
|
|
13,803
|
Deferred
revenue
|
|
21,748
|
|
15,800
|
|
2,301
|
Incentive payables to
members[5]
|
|
207,331
|
|
188,917
|
|
27,508
|
Member management fees
payable
|
|
11,087
|
|
12,448
|
|
1,813
|
Other payable and
accrued liabilities
|
|
145,527
|
|
118,211
|
|
17,213
|
Amounts due to related
parties
|
|
10,608
|
|
10,461
|
|
1,523
|
Operating lease
liabilities - current
|
|
1,162
|
|
669
|
|
97
|
|
|
|
|
|
|
|
Total current liabilities
|
|
536,366
|
|
441,300
|
|
64,258
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
145
|
|
58
|
|
8
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
145
|
|
58
|
|
8
|
|
|
|
|
|
|
|
Total Liabilities
|
|
536,511
|
|
441,358
|
|
64,266
|
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,
2022
|
|
March
31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
70
|
|
70
|
|
10
|
Less: Treasury
stock
|
|
(98,709)
|
|
(116,309)
|
|
(16,936)
|
Additional paid-in
capital
|
|
7,333,144
|
|
7,325,460
|
|
1,066,670
|
Statutory
reserve
|
|
16,078
|
|
16,078
|
|
2,341
|
Accumulated other comprehensive
income
|
|
63,113
|
|
51,186
|
|
7,453
|
Accumulated deficit
|
|
(5,958,666)
|
|
(5,981,598)
|
|
(870,988)
|
Total Yunji
Inc. shareholders' equity
|
|
1,355,030
|
|
1,294,887
|
|
188,550
|
Non-controlling
interests
|
|
870
|
|
871
|
|
127
|
Total shareholders'
equity
|
|
1,355,900
|
|
1,295,758
|
|
188,677
|
Total liabilities
and shareholders' equity
|
|
1,892,411
|
|
1,737,116
|
|
252,943
|
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
|
|
|
March
31,
2022
|
|
March
31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues:
|
|
|
|
|
|
|
Sales of merchandise,
net
|
|
290,455
|
|
142,958
|
|
20,816
|
Marketplace
revenue
|
|
47,426
|
|
32,957
|
|
4,799
|
Other
revenues
|
|
4,698
|
|
2,829
|
|
412
|
Total
revenues
|
|
342,579
|
|
178,744
|
|
26,027
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Cost of
revenues
|
|
(191,317)
|
|
(93,462)
|
|
(13,609)
|
Fulfilment
|
|
(48,914)
|
|
(27,118)
|
|
(3,949)
|
Sales and
marketing
|
|
(50,650)
|
|
(29,585)
|
|
(4,308)
|
Technology and
content
|
|
(24,140)
|
|
(13,352)
|
|
(1,944)
|
General and
administrative
|
|
(31,223)
|
|
(15,172)
|
|
(2,209)
|
Total operating cost
and expenses
|
|
(346,244)
|
|
(178,689)
|
|
(26,019)
|
Other operating
income
|
|
6,109
|
|
909
|
|
132
|
Income from
operations
|
|
2,444
|
|
964
|
|
140
|
Financial loss,
net
|
|
(35,270)
|
|
(22,192)
|
|
(3,231)
|
Foreign exchange
(loss)/income, net
|
|
(313)
|
|
2,363
|
|
344
|
Other non-operating
income, net
|
|
2,023
|
|
486
|
|
71
|
Loss before income
tax expense, and
equity in loss of
affiliates, net of tax
|
|
(31,116)
|
|
(18,379)
|
|
(2,676)
|
Income tax
expense
|
|
(5,324)
|
|
(3,079)
|
|
(448)
|
Equity in loss of
affiliates, net of tax
|
|
(455)
|
|
(1,475)
|
|
(215)
|
Net
loss
|
|
(36,895)
|
|
(22,933)
|
|
(3,339)
|
Less: net loss
attributable to non-
controlling interests
shareholders
|
|
(399)
|
|
-
|
|
-
|
Net loss
attributable to YUNJI INC.
|
|
(36,496)
|
|
(22,933)
|
|
(3,339)
|
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
|
|
|
March
31,
2022
|
|
March
31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net loss
attributable to ordinary
shareholders
|
|
(36,496)
|
|
(22,933)
|
|
(3,339)
|
Net
loss
|
|
(36,895)
|
|
(22,933)
|
|
(3,339)
|
Other comprehensive
loss
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(4,972)
|
|
(11,927)
|
|
(1,737)
|
Total comprehensive
loss
|
|
(41,867)
|
|
(34,860)
|
|
(5,076)
|
Less: total
comprehensive loss
attributable to
non-controlling
interests
shareholders
|
|
(399)
|
|
-
|
|
-
|
Total comprehensive
loss
attributable to
YUNJI INC.
|
|
(41,468)
|
|
(34,860)
|
|
(5,076)
|
Net loss
attributable to ordinary
shareholders
|
|
(36,496)
|
|
(22,933)
|
|
(3,339)
|
Weighted average number
of
ordinary shares used in
computing
net loss per share,
basic and diluted
|
|
2,147,541,470
|
|
1,983,680,743
|
|
1,983,680,743
|
Net loss per share
attributable to
ordinary
shareholders
|
|
|
|
|
|
|
Basic
|
|
(0.02)
|
|
(0.01)
|
|
-
|
Diluted
|
|
(0.02)
|
|
(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
|
|
|
March
31,
2022
|
|
March
31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
Share-based
compensation
expenses included
in:
|
|
|
|
|
|
|
Technology and
content
|
|
1,196
|
|
(139)
|
|
(20)
|
General and
administrative
|
|
4,778
|
|
(715)
|
|
(104)
|
Fulfillment
|
|
618
|
|
(2,820)
|
|
(411)
|
Sales and
marketing
|
|
(325)
|
|
(631)
|
|
(92)
|
Total
|
|
6,267
|
|
(4,305)
|
|
(627)
|
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
|
|
|
March
31,
2022
|
|
March
31,
2023
|
|
|
RMB
|
|
RMB
|
|
US$
|
Reconciliation of
Net Loss to Adjusted Net Loss:
|
|
|
|
|
|
|
Net loss
|
|
(36,895)
|
|
(22,933)
|
|
(3,339)
|
Add: Share-based compensation
|
|
6,267
|
|
(4,305)
|
|
(627)
|
Adjusted net
loss
|
|
(30,628)
|
|
(27,238)
|
|
(3,966)
|
[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 RMB6.8676 to US$1.00, the exchange
rate in effect as of March 31, 2023 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.
[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 March
31, 2023, Short-term loan receivables of amount RMB228,596 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]. As of March
31, 2023, the decrease in incentive payables was mainly due to
derecognition of long-aged payables to inactive members.
|
View original
content:https://www.prnewswire.com/news-releases/yunji-announces-first-quarter-2023-unaudited-financial-results-301841083.html
SOURCE Yunji Inc.