Yunji Inc. (YJ) Q4 2025 Earnings Call Transcript

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Yunji's second half 2025 earnings conference call. With us today are Mr. Shang Lu Xiao, Chairman and Chief Executive Officer, and Mr. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meeting of the Private Securities Inligation Reform Act of 1995 that are based solely on the company's current expectations and current market operating conditions and relate to events that involve known or unknown risks, uncertainties, and other factors of Yunji and its industry. These forward-looking statements can be identified by terminologies such as will, expect, anticipate, continue, or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to the company's related documents filed with the U.S. SEC. Any forward-looking statements that the company makes on this call are based on assumptions as of today and are expressly qualified in the entirety by cautionary statements, risk factors, and details of its filing with the SEC. The company does not undertake any obligation to update these statements except as required under applicable law. With that, I will now turn it over to Mr. Shang-Lu Xiao, Chairman and CEO of Yunji. Please go ahead, sir.

Hello everyone, and welcome to Yungji's Earnings Corps. Thank you for your continued interest and support. 稳固客链性基本盘,同时积极探索,稳步布局销售渠道拓展工作。 接下来,我来为大家介绍一下公司财务表现和战略咨询情况。 BNG has remained committed to its strategic positioning of becoming a global leader in organic healthy living while making steady progress in the organic and healthy living market. In the second half of 2025, we continued to refine our premium product strategy, further strengthen customer loyalty, and actively explore and expand our sales channels.

Now let me walk you through the company's financial performance and its strategic execution. 这背后是产品策略 运营提效和财务管控的多重发力 用户运营方面 公司依旧保持69.7%的高负购率 这一数据不仅体现了用户对云集产品和服务的高度认可 更成为公司稳健发展的核心基石 上述数据充分说明 我们坚持的高毛利产品策略和精细化用户运营策略 正逐步产生实质性的成果

公司发展的质量和效益也在持续的提升 In the second half of 2025 the company achieved total revenue of around 159 million RMB excluding the impact of the revenue recognized from long-age incentive payables to inactive members Merchandise sales revenue with 128 million RMB up 0.16% compared to the second half of 2024. Meanwhile, the company's net law significantly narrowed from 115 million RMB in the same period of 2024 to the 33 million RMB, representing a 70% reduction. This was driven by the combined impact of our product strategy, operational efficiency improvements, and the discipline of financial management. In terms of the user operations, The company maintains a high repurchase rate of 69.7%, which not only reflects the user's high recognition of UNG's products and services, but also serves as the core foundation for the company's study development. These results reflect the growing effectiveness of our displaying the product selection and operational execution with the quality and efficiency of the company's development continuing to improve. In the second half of 2025, we firmly continued to cultivate our core business segments and achieve the faced progress. First, we continue to advance our health strategy, further integrating organic food within the health sector and building a distinctive portfolio of the food and medicine homology products. By closely aligned with China's national health strategy and precisely addressing consumers' health-focused needs, our organic foods and health products have continued to earn the trust of consumers. In 2025, five of the company's organic food and health products each generated sales of over 10 million RMB including the Yung Chen Lake Hairy Crab, the Probiotic Bolus, Light Slimming Coffee, Yunjia Organic Milk, and Byung Shan Free Dried Sea Buckform Power. As consumer awareness of and the demand for health care, and wellness continue to grow, we further expanded our portfolio of food-managing homology products. One example is in the poly...

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Okay. So, one example is the polygonal tea, which we launched in the fourth quarter of 2025. With its natural and health-focused advantages, the polygonal tea quickly became one of our most popular products. Supported by premium ingredients and refined processing techniques the jiu hua zun polygonotenty achieve the rapid sales growth making it a new highlight within our healthy living business as often the end of december 2025 sales of this product had existed in 18 million rmb in the future we will continue to enrich the food and medicine homology product categories and further improve the health and wellness product metric to meet users' diversified health consumption needs. We developed a tailored value-for-money strategy for Su Yan, closely along with today's more rational consumer spending trends, and this has helped the brand steadily strengthen its market position to meet consumers' core demand for quality products at attractive prices. We have introduced a range of flagship Suye products and product bundles that have been well recognized in the market over the years. In 2025, sales of Suye's polypeptide series increased by 20% year-over-year, while sales of the direct cleaning moves increased by 32% year-over-year. Sales of the pros are laying firming series also increased by 26% from 20.7 million RMB in 2024 to 26.2 million RMB in 2025. So, yes, a strong performance confirms the forward-thinking nature of our value-for-money strategy and lays a solid foundation for further market expansion. At the same time, we created and differentiated competitive advantages through the experiential services. gradually transforming from a product sales platform into a product plus experience platform, further enhancing user engagement and loyalty. We have created a comprehensive supply chain traceability experience, allowing users to participate in the verification of their product quality throughout the process, reinforce health from the source through organic standards, and building deep trust in brand. For example, in October 2025, we organized a Baiwinshan-free dried sea buckthorn powder traceability tool where we organized members to visit the Qinghai sea buckthorn production area, allowing members to directly witness the entire process from organic cultivation to scientific processing of wild sea buckthorn. This transparent traceability model has continually transcends members' trust in our products. Participation in these traceability programs has grown steadily, attracting an increased number of members. In addition, we continue to enhance our tea therapy experience services, laying a solid foundation for broader consumer recognition of the food medicine homology products and supporting the expansion of our offerings in this category. Today, our experienced services span the food product journey from front-end supply chain traceability that validates product quality to better and interactive services, such as the T-Cherapy. The end-to-end experience design not only enhances user participation and brand trust, but also builds emotional connections between users and the platform. We believe this will serve as a core competitive strength as we continue our transition toward a product-plus experience platform. As we continue to strengthen our core business, we remain neatly aware that growth is a constant priority for any company. In the second half of 2025, while consolidating our existing user base, we actively explore diversified customer acquisition channels, seeking to balance growth with the efficiency and support the company's sustainable development.

2026 年上半年,我们将延续存量用户激活策略,重点推出超级星期三专属活动,在APP打造专属入口主推精选产品。目前该活动的日用户活跃度较平日提升 25%. In addition, we have added the growing speed of the road. In 2025, we have been using the Lodipay mode to expand a new city, and connect to the network manager. The new network manager of Lodipay is 9.0. The new network manager of Lodipay is 4.000 people. These network manager of Lodipay has helped us to build a range of high-quality, high-quality users, and to expand the market for the company's long-term development.

We have efficiently activated existing users through a series of targeted operational initiatives. For example, in one campaign, we sent repurchase invitations to over 50,000 dormant users and 44.87% of those users subsequently placed the order on the platform. These targeted initiatives delivered strong activation and conversion results, fully unlocking the commercial value of our existing user base. In the first half of 2026, we expanded the existing user activation strategy, focusing on launching the Super Wednesday campaign. Through our dedicated entry point in our APP, we are featuring a curated selection of products. And the campaign has already driven a 25% increase in daily active users compared with normal days. In addition, we put greater emphasis on expanding our offline channels. In 2025, we entered nine new cities through our local delivery model and added more than 4,000 new community leaders.

These community leaders helped us attract a large number of high-larity, high-value quality users, accumulating valuable user assets for the company's long-term development. 各位朋友们,回顾2025年下半年,我们步履坚实。展望2026年上半年,我们目标清晰。新的一年,云集将继续坚守全球有机生活引领者的战略定位,以产品和体验为双轮驱动,以效率和增长为核心导向。持续为中国家庭的有机健康生活贡献更多力量。 As we look back on the second half of 2025, we made steady and solid progress.

Looking ahead to the first half of 2026, our priorities are clear. In the year ahead, Wingy will remain committed to its strategic positioning as a global leader in organic living. With the products and appearances serving as our dual growth engines and with efficiency and growth as our core priorities, We will continue to contribute to the healthier and more organic lifestyles for families in China. This concludes my prepared remarks for today. With that, I will hand it over to Ms. Song Nan, our Senior Financial Director, to go through the financial results.

Note that all numbers stated in the following remarks are in armed terms, and all comparisons and percentages of Chinese are on our year-over-year basis, unless otherwise noted. Throughout 2025, we operate in a challenging and uncertain market environment, nevertheless supported by our resilient financial position. We continue to advise our strategic priorities over curated premiums to our users while remaining in cost management and making timely adjustments to adapt to dynamic market conditions. Now let's take a closer look at our second half 2025 financials. Total revenues were $158.7 million compared to $183.8 million a year ago. Revenues from sales of merchandise were $136.4 million. This figure includes the impact from the revenues recognition of non-agent incentives payables to inactive members. Including this impact, our measured sales grew by 0.16% compared to the same period of 2024, reflecting the health growth of our core business and demonstrating the effectiveness of our strategic focus on organic health and products and the provide labels. Revenues from our marketplace business were $22.1 million. The change in total revenue was premiered during our deliberate decision to scale back the marketplace business while refining our product offering across all categories and optimizing our selection of suppliers and merchants. And this change moves the demand to strengthen our market position for sustainable growth. On the cost side, total cost of revenues increased by 3% to RMB, $92.7 million, from there due to high merchandise sales, which are recognized on our growth basis, our growth margin reminds resilient during the period. This was supported by strong customers' loyalty to our provides label products. Together with our effective product curation strategy, which focus on selecting and promoting premium high retaining categories across our integrated portfolio. Now, let's take a look at our operating expenses in the second half of 2025. Fulfillment expenses decreased to $13.3 million from $33.6 million a year ago. The decrease was primarily due to lower personal costs, driving by a more optimized allocation of staffing resources. Sales and marketing expenses were 42.6 million compared to 49.5 million a year ago. The trend is primarily due to our future of promotional efforts from online to offline channel and provide normal initiatives reflecting our agile marketing approach that then make allocation resources based on market conditions and the customer engagement effectiveness. Technology and content expenses were $13 million compared to $28.1 million a year ago. This was mainly due to the reduction in personal costs as a result of staffing structure refinement. General and administrative expenses decreased to $33.5 million from $96.9 million a year The decrease was mainly driven by lower impairment charges on light-level assets other than good A loss for credit losses and reduced personal costs resulting from a reduction in handicrafts. Our extensive objective optimization demonstrates the infragment of our refined management approach. While we strategically invested in sales and marketing for offline channel development, a key component of our customers, Acquisitionly strictly, we achieved significant reduction across other expenses categories as the total operation expenses in the second half of 2025 decreased to $112.4 million from $200.1 million in the prior year period. A 44% reduction correspondingly loss from operations narrowed significantly to $43 million from $103.9 million a year This display expense management fluctuates continuous improvement in operating efficiency and our progress towards profitability. Net loss was $32.6 million compared with $115.1 million a year ago, while adjusted net loss was $32.5 million compared with $114 million in the prior year period. The continual number of left is deflected the stress of our strategic focus on organic health and our health effect of offering bad experience to our users rather than simple operating as an e-commerce transaction platform. Basic and diluted net loss per share are rapidly to ordinary shared hold. We bought net load to 0.02 from 0.06 in the same period of 2024. Turning to equitably as of December 31st, 2025, we had a total of $216.1 million in cash and cash equipment and short-term investment on our balance sheet compared to $242.8 million as of December 31st, 2024. Therefore, our liquid assets remain sufficient to cover our payable obligations. At the same time, we continue to focus on optimizing, waking capital, and managing our efforts is sufficient to support our operations. To summarize, in 2025, the best flow overlay made market growth, cautious, consumer sentiment, and increasingly selective spending behavior. We continue to deliver studies improvement in our professional performance, this is reflecting the resilience of our business as well as the effectiveness of our disciplined product selecting and operational execution. Our solid financial position continues to support our long-term strategic priorities while our continued focus on resource integration and efficient asset utilization has created an important role in driving this improvement. Looking forward, we will remain focused on break-wise toward break-even and future addressing our overall financial position while preserving the flexibility to navigate and navigate and market environment to support sustainable long-term growth. This concludes our repair remarks for today.

Thank you. That brings us to the end of today's call. Thank you for attending. You may now disconnect.