Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-38877 |
Entity Registrant Name | Yunji Inc. |
Entity Central Index Key | 0001759614 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 15/F, South Building |
Entity Address, Address Line Two | Hipark Phase 2 |
Entity Address, Address Line Three | Xiaoshan District |
Entity Address, City or Town | Hangzhou |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 310000 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | false |
Auditor Firm ID | 1424 |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | Shanghai, the People’s Republic of China |
ADR [Member] | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | American depositary shares, each American depositary share representing one hundred Class A ordinary shares |
Trading Symbol | YJ |
Security Exchange Name | NASDAQ |
Common Class A [Member] | |
Entity Addresses [Line Items] | |
Title of 12(b) Security | Class A ordinary shares |
No Trading Symbol Flag | true |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 1,016,418,532 |
Common Stock [Member] | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,966,378,532 |
Common Class B [Member] | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 949,960,000 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 15/F, South Building |
Entity Address, Address Line Two | Hipark Phase 2 |
Entity Address, Address Line Three | Xiaoshan District |
Entity Address, City or Town | Hangzhou |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 310000 |
City Area Code | 86 |
Local Phone Number | 86-571-8168 8920 |
Contact Personnel Name | Yeqing Cui |
Contact Personnel Email Address | cuiyq@yunjiglobal.com |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 72,894 | ¥ 517,542 | ¥ 414,634 |
Restricted cash | 3,827 | 27,169 | 42,109 |
Short-term investments | 1,013 | 7,195 | 212,003 |
Accounts receivable, net (Allowance for credit losses of RMB 16,762 and RMB 35,159, respectively) | 9,058 | 64,312 | 94,111 |
Advance to suppliers | 1,980 | 14,058 | 32,738 |
Inventories, net | 6,016 | 42,716 | 54,651 |
Prepaid expenses and other current assets (Allowance for credit losses of RMB 14,510 and RMB 13,017, respectively) | 18,908 | 134,247 | 362,065 |
Total current assets | 113,888 | 808,600 | 1,212,513 |
Non-current assets: | |||
Property, equipment and software, net | 24,712 | 175,451 | 168,928 |
Long-term Investments | 51,291 | 364,159 | 414,325 |
Deferred tax assets | |||
Operating lease right of use assets, net | 2,325 | 16,507 | 231 |
Other non-current assets (Allowance for credit losses of RMB 2,091 and RMB 22,213, respectively) | 26,630 | 189,067 | 96,414 |
Assets, Noncurrent | 104,958 | 745,184 | 679,898 |
Total assets | 218,846 | 1,553,784 | 1,892,411 |
Current liabilities (including amounts of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiary of RMB 399,285 and RMB 250,879 as of December 31, 2022 and 2023, respectively) | |||
Accounts payable | 13,631 | 96,782 | 138,903 |
Deferred revenue | 1,326 | 9,412 | 21,748 |
Incentive payables to members | 17,590 | 124,889 | 207,331 |
Member management fees payable | 616 | 4,373 | 11,087 |
Other payable and accrued liabilities | 15,381 | 109,200 | 145,527 |
Operating Lease, Liability, Current | 476 | 3,376 | 1,162 |
Total current liabilities | 49,518 | 351,567 | 536,366 |
Non-current liabilities | |||
Operating lease liabilities non-current | 1,566 | 11,122 | 145 |
Deferred tax liabilities | |||
Total non-current liabilities | 1,566 | 11,122 | 145 |
Liabilities | 51,084 | 362,689 | 536,511 |
Commitments and contingencies (Note 27) | |||
Shareholders’ equity | |||
Ordinary shares (US$0.000005 par value 20,000,000,000 shares authorized as of December 31, 2020 and 2021; 1,208,831,222 Class A ordinary shares and 949,960,000 Class B ordinary shares issued as of December 31, 2020 and 2021; 1,183,305,412 and 1,196,575,392 Class A ordinary shares and 949,960,000 and 949,960,000 Class B ordinary shares outstanding as of December 31, 2020 and 2021, respectively) | 10 | 70 | 70 |
Additional paid-in capital | 1,032,223 | 7,328,680 | 7,333,144 |
Statutory reserve | 2,289 | 16,254 | 16,078 |
Accumulated other comprehensive income/(loss) | 12,013 | 85,291 | 63,113 |
Less: Treasury stock (25,525,810 and 12,255,830 shares as of December 31, 2020 and 2021, respectively) | (16,353) | (116,108) | (98,709) |
Accumulated deficit | (862,543) | (6,123,971) | (5,958,666) |
Total Yunji Inc. shareholders' equity | 167,639 | 1,190,216 | 1,355,030 |
Non-controlling interests | 123 | 879 | 870 |
Total shareholders' equity | 167,762 | 1,191,095 | 1,355,900 |
Total liabilities and shareholders' equity | 218,846 | 1,553,784 | 1,892,411 |
Related Party [Member] | |||
Current assets: | |||
Amounts due from related parties | 192 | 1,361 | 202 |
Current liabilities (including amounts of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiary of RMB 399,285 and RMB 250,879 as of December 31, 2022 and 2023, respectively) | |||
Amounts due to related parties | $ 498 | ¥ 3,535 | ¥ 10,608 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares |
Allowance for credit losses, accounts receivable | ¥ | ¥ 35,159 | ¥ 16,762 |
Prepaid expenses and other current assets allowance for credit losses | ¥ | 13,017 | 14,510 |
Allowance for credit losses, other non current assets | ¥ | 22,213 | 2,091 |
Total current liabilities | ¥ 351,567 | ¥ 536,366 |
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 |
Treasury stock, shares | 192,412,690,000 | 140,393,870,000 |
Common Class A [Member] | ||
Common stock, shares issued | 1,208,831,222 | 1,208,831,222 |
Common stock, shares outstanding | 1,016,418,532 | 1,068,437,352 |
Common Class B [Member] | ||
Common stock, shares issued | 949,960,000 | 949,960,000 |
Common stock, shares outstanding | 949,960,000 | 949,960,000 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Total current liabilities | ¥ | ¥ 250,879 | ¥ 399,285 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Revenues: | ||||
Total revenues | $ 90,172 | ¥ 640,209 | ¥ 1,154,114 | ¥ 2,155,361 |
Operating cost and expenses: | ||||
Cost of revenues | (46,870) | (332,774) | (651,578) | (1,343,386) |
Fulfilment | (15,137) | (107,472) | (160,680) | (202,026) |
Sales and marketing | (17,048) | (121,039) | (214,783) | (296,049) |
Technology and content | (7,534) | (53,490) | (81,382) | (124,854) |
General and administrative | (17,036) | (120,951) | (145,857) | (226,110) |
Total operating cost and expenses | (103,625) | (735,726) | (1,254,280) | (2,192,425) |
Other operating income | 2,098 | 14,898 | 21,599 | 54,416 |
Income/(loss) from operations | (11,355) | (80,619) | (78,567) | 17,352 |
Financial income/(expense), net | (8,483) | (60,226) | (14,356) | 80,061 |
Foreign exchange loss, net | (950) | (6,743) | (15,697) | (1,300) |
Other non-operating income/(loss), net | (339) | (2,405) | 2,072 | 112,909 |
Income/(loss) before income tax expense, and equity in income of affiliates, net of tax | (21,127) | (149,993) | (106,548) | 209,022 |
Income tax expense | (1,106) | (7,851) | (24,791) | (60,501) |
Equity in loss of affiliates, net of tax | (1,025) | (7,276) | (7,051) | (16,237) |
Net income/(loss) | (23,258) | (165,120) | (138,390) | 132,284 |
net income/(loss) attributable to non- controlling interests shareholders | 1 | 9 | (217) | 318 |
Net income/(loss) attributable to YUNJI INC. | (23,259) | (165,129) | (138,173) | 131,966 |
Net income/(loss) | (23,258) | (165,120) | (138,390) | 132,284 |
Other comprehensive (loss)/income | ||||
Foreign currency translation adjustment | 3,124 | 22,178 | 78,777 | (25,116) |
Total comprehensive income/(loss) | (20,134) | (142,942) | (59,613) | 107,168 |
Less: total comprehensive income/(loss) attributable to non-controlling interests shareholders | 1 | 9 | (217) | 318 |
Total comprehensive income/(loss) attributable to YUNJI INC. | (20,135) | (142,951) | (59,396) | 106,850 |
Net income/(loss) attributable to ordinary shareholders | $ (23,259) | ¥ (165,129) | ¥ (138,173) | ¥ 131,966 |
Weighted average number of ordinary shares used in computing net income/(loss) per share | ||||
- Basic | 1,971,108,505 | 1,971,108,505 | 2,088,319,721 | 2,139,963,573 |
- Diluted | 1,971,108,505 | 1,971,108,505 | 2,088,319,721 | 2,147,205,590 |
Net income/(loss) per share attributable to ordinary shareholders | ||||
- Basic | (per share) | $ (0.01) | ¥ (0.08) | ¥ (0.07) | ¥ 0.06 |
- Diluted | (per share) | $ (0.01) | ¥ (0.08) | ¥ (0.07) | ¥ 0.06 |
Sales of Merchandise [Member] | ||||
Revenues: | ||||
Total revenues | $ 70,515 | ¥ 500,651 | ¥ 965,796 | ¥ 1,798,882 |
Market Place Revenue [Member] | ||||
Revenues: | ||||
Total revenues | 18,337 | 130,188 | 170,561 | 321,844 |
Other Revenue [Member] | ||||
Revenues: | ||||
Total revenues | $ 1,320 | ¥ 9,370 | ¥ 17,757 | ¥ 34,635 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity ¥ in Thousands, $ in Thousands | Common Stock [Member] CNY (¥) shares | Treasury Stock, Common [Member] CNY (¥) shares | Additional Paid-in Capital [Member] CNY (¥) | Statutory Reserve [Member] CNY (¥) | AOCI Attributable to Parent [Member] CNY (¥) | Retained Earnings [Member] CNY (¥) | Parent [Member] CNY (¥) | Noncontrolling Interest [Member] CNY (¥) | USD ($) | CNY (¥) |
Balance at Dec. 31, 2020 | ¥ 70 | ¥ (85,202) | ¥ 7,327,148 | ¥ 12,624 | ¥ 9,452 | ¥ (5,952,085) | ¥ 1,312,007 | ¥ 2,861 | ¥ 1,314,868 | |
Balance, shares at Dec. 31, 2020 | shares | 2,158,791,222 | (25,525,810) | ||||||||
Net income (loss) | 131,966 | 131,966 | 318 | 132,284 | ||||||
Foreign currency translation adjustments | (25,116) | (25,116) | (25,116) | |||||||
Appropriation to statutory reserves | 1,395 | (1,395) | ||||||||
Repurchasing common stock (Note 21) | ¥ (220) | (220) | (220) | |||||||
Repurchasing common stock, shares | shares | (387,500) | |||||||||
Issuance of ordinary shares due to the exercise of share option (Note 23) | ¥ 2,124 | (1,644) | 480 | 480 | ||||||
Issuance of ordinary shares due to the exercise of share option, shares | shares | 748,730 | |||||||||
Issuance of restricted shares (Note 23) | ¥ 39,070 | (39,070) | ||||||||
Issuance of restricted shares, shares | shares | 12,908,750 | |||||||||
Capital injection from non-controlling interests | 208 | 208 | ||||||||
Acquisition of additional shares in subsidiaries from non-controlling interest shareholders | (1,198) | (1,198) | ||||||||
Share based compensation | 55,910 | 55,910 | 55,910 | |||||||
Disposal of a subsidiary | 2,869 | 2,869 | (1,309) | 1,560 | ||||||
Dividend to non-controlling interest shareholders | (261) | (261) | ||||||||
Balance at Dec. 31, 2021 | ¥ 70 | ¥ (44,228) | 7,342,344 | 14,019 | (15,664) | (5,818,645) | 1,477,896 | 619 | 1,478,515 | |
Balance, shares at Dec. 31, 2021 | shares | 2,158,791,222 | (12,255,830) | ||||||||
Net income (loss) | (138,173) | (138,173) | (217) | (138,390) | ||||||
Foreign currency translation adjustments | 78,777 | 78,777 | 78,777 | |||||||
Repurchasing common stock (Note 21) | ¥ (95,436) | (95,436) | (95,436) | |||||||
Repurchasing common stock, shares | shares | (139,237,930) | |||||||||
Issuance of ordinary shares due to the exercise of share option (Note 23) | ¥ 2,903 | (2,390) | 513 | 513 | ||||||
Issuance of ordinary shares due to the exercise of share option, shares | shares | 773,640 | |||||||||
Issuance of restricted shares (Note 23) | ¥ 38,052 | (38,052) | ||||||||
Issuance of restricted shares, shares | shares | 10,326,250 | |||||||||
Capital injection from non-controlling interests | 197 | 197 | ||||||||
Acquisition of additional shares in subsidiaries from non-controlling interest shareholders | 1,099 | 1,099 | (1,099) | |||||||
Share based compensation | 30,150 | 30,150 | 30,150 | |||||||
Appropriation to statutory reserves | 2,059 | (2,059) | ||||||||
Conversion of liabilities to NCI of subsidiaries to capital | 1,577 | 1,577 | ||||||||
Disposal of subsidiaries | (7) | 211 | 204 | (207) | (3) | |||||
Balance at Dec. 31, 2022 | ¥ 70 | ¥ (98,709) | 7,333,144 | 16,078 | 63,113 | (5,958,666) | 1,355,030 | 870 | 1,355,900 | |
Balance, shares at Dec. 31, 2022 | shares | 2,158,791,222 | (140,393,870) | ||||||||
Net income (loss) | (165,129) | (165,129) | 9 | $ (23,258) | (165,120) | |||||
Foreign currency translation adjustments | 22,178 | 22,178 | 3,124 | 22,178 | ||||||
Repurchasing common stock (Note 21) | ¥ (20,978) | (20,978) | (20,978) | |||||||
Repurchasing common stock, shares | shares | (53,606,770) | |||||||||
Issuance of restricted shares (Note 23) | ¥ 3,579 | (3,579) | ||||||||
Issuance of restricted shares, shares | shares | 1,587,950 | |||||||||
Share based compensation | (885) | (885) | (885) | |||||||
Appropriation to statutory reserves | 176 | (176) | ||||||||
Balance at Dec. 31, 2023 | ¥ 70 | ¥ (116,108) | ¥ 7,328,680 | ¥ 16,254 | ¥ 85,291 | ¥ (6,123,971) | ¥ 1,190,216 | ¥ 879 | $ 167,762 | ¥ 1,191,095 |
Balance, shares at Dec. 31, 2023 | shares | 2,158,791,222 | (192,412,690) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income/(loss) | $ (23,258) | ¥ (165,120) | ¥ (138,390) | ¥ 132,284 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 922 | 6,545 | 7,718 | 15,985 |
Shared-based compensation | (125) | (885) | 30,150 | 55,910 |
Loss/(gain) from disposal of property, equipment and software | (49) | (350) | (143) | 667 |
Equity in loss of affiliates | 1,025 | 7,276 | 7,051 | 16,237 |
Changes in fair value for equity securities | 11,398 | 80,923 | 35,198 | (59,690) |
Inventory write-downs | 1,306 | 9,270 | 4,792 | 25,696 |
Foreign exchange loss/(income) | 1,172 | 8,313 | (15,582) | 6,701 |
Amortization of right of use assets | 245 | 1,742 | 2,774 | 3,908 |
Change in estimate of refund payable to members | (1,282) | (2,617) | ||
(Gain)/loss on disposal of long-term investments and subsidiaries | 3 | 23 | 1,792 | (112,354) |
Reverse stock splits expense | 614 | 4,356 | ||
Allowance for credit losses | 5,225 | 37,098 | 21,233 | 24,045 |
Deferred income tax | 14,925 | 42,698 | ||
Changes in operating assets and liabilities: | ||||
Decrease/(increase) in accounts receivable | (5,544) | (39,363) | (20,886) | 39,516 |
Decrease in inventories | 375 | 2,665 | 25,057 | 25,036 |
Decrease in advance to suppliers | 2,631 | 18,683 | 26,699 | 39,005 |
Decrease in prepaid expenses and other current assets | 4,572 | 32,464 | 95,158 | 47,602 |
(Increase)/decrease in other non-current assets | 131 | 932 | (1,373) | (1,592) |
Decrease/(increase) in amounts due from related parties | (163) | (1,159) | 739 | 2,574 |
Decrease in accounts payable | (5,933) | (42,121) | (108,003) | (212,735) |
Decrease in incentive payables to members | (11,612) | (82,442) | (58,281) | (46,558) |
Decrease in member management fees payable | (946) | (6,714) | (4,483) | (30,271) |
Increase/(decrease) in deferred revenue | (1,737) | (12,335) | (84,004) | 54,884 |
Decrease in amount due to related parties | (996) | (7,073) | (5,022) | (7,359) |
Decrease in other payable and accrued liabilities | (5,772) | (40,989) | (52,659) | (85,563) |
Net cash used in operating activities | (26,516) | (188,261) | (216,822) | (25,991) |
Cash flows from investing activities: | ||||
Purchase of property, equipment and software | (1,747) | (12,407) | (92,256) | (86,983) |
Proceeds from disposal of property, equipment and software | 90 | 640 | 976 | 2,383 |
Cash paid for short term investments | (1,008) | (7,159) | (465,242) | (377,756) |
Cash received from maturity of short-term investments | 30,194 | 214,374 | 651,402 | 126,598 |
Cash paid for factorings services | (73,322) | (194,070) | ||
Cash received from factorings services | 7,140 | 50,694 | 102,409 | 169,000 |
Cash paid for loans provided to third parties | (1,000) | (159,200) | ||
Cash received from repayment of loans provided to third parties | 11,752 | 83,439 | 25,790 | 65,023 |
Cash received from disposal of long-term investments | 490 | 3,481 | 2,009 | 135,864 |
Impact to cash resulting from deconsolidation of subsidiaries | 245 | 1,743 | 1,545 | 4,123 |
Cash paid for long-term investments | (5,742) | (40,770) | (60,000) | (198,777) |
Cash dividends received from long-term investments | 254 | |||
Net cash (used in)/generated from investing activities | 41,414 | 294,035 | 92,565 | (513,795) |
Cash flows from financing activities: | ||||
Net proceeds from exercise of share options | 684 | 1,008 | ||
Cash paid for repurchase of common stocks | (2,954) | (20,978) | (95,436) | (220) |
Cash paid for reverse stock splits expense | (614) | (4,356) | ||
Cash paid to non-controlling shareholders for acquisition of equity shares in subsidiaries | (1,198) | |||
Cash dividend paid to a non-controlling shareholder | (261) | |||
Capital injection from non-controlling shareholders | 197 | 208 | ||
Net cash used in financing activities | (3,568) | (25,334) | (94,555) | (463) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,060 | 7,528 | 45,823 | (19,763) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | 12,390 | 87,968 | (172,989) | (560,012) |
Cash, cash equivalents and restricted cash at beginning of the year | 64,331 | 456,743 | 629,732 | 1,189,744 |
Cash, cash equivalents and restricted cash at the end of the year | 76,721 | 544,711 | 456,743 | 629,732 |
Supplemental disclosure of cash flow information | ||||
Cash paid for income tax | 581 | 4,128 | 20,868 | 7,979 |
Supplemental schedule of non-cash investing and financing activities | ||||
Net settlement between factoring receivables and payables | ¥ 3,441 | 33,182 | ||
Cash and cash equivalents | 72,894 | 567,204 | ||
Restricted cash(Note 2.9) | 3,827 | 62,528 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 76,721 | ¥ 629,732 |
PRINCIPAL ACTIVITIES AND ORGANI
PRINCIPAL ACTIVITIES AND ORGANIZATION | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
PRINCIPAL ACTIVITIES AND ORGANIZATION | 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (a) Principal activities Yunji Inc. (“Yunji”, or “the Company”) was incorporated under the laws of the Cayman Islands in November 2017, as an exempted company with limited liability. The Company, through its subsidiaries, consolidated variable interest entities (“VIEs”) and VIE’s subsidiaries (collectively, the “Group”), offers a selection of high-quality products covering a broad range of categories at attractive prices through its e-commerce platform, Yunji App. Starting from first quarter of 2019, the Group started to operate Yunji App as a marketplace platform for third party merchants to sell their merchandise to Yunji App users. Starting from third quarter of 2020, the Group expanded to operate its business, including marketplace, on a diverse range of sales channels and on other platforms. The Group’s principal operation and geographic market is in the People’s Republic of China (“PRC”). (b) History of the Group and Basis of Presentation Prior to the incorporation of the Company and starting in May 2015, the Group’s business was carried out under subsidiaries (“Operating Entities”) of Yunji Sharing Technology Co., Ltd. (“Yunji Sharing”), previously known as Hangzhou Bolue Biology Technology Co., Ltd. (“Bolue”). Mr. Xiao Shanglue is the co-founder of Bolue (the “Co-Founder”). The Co-Founder, Mr. Wang Peng, and the other two institutional investors were initial ordinary shareholders of Yunji Sharing (the four parties were collectively named as the “Initial Ordinary Shareholders”). After Yunji Inc. was established in Cayman Island in November 2017, Yunji Holdings Limited (“Yunji Holding”) was incorporated in Hong Kong as a wholly owned subsidiary of the Company, and Hangzhou Yunchuang Sharing Network Technology Co., Ltd. (“Yunchuang Sharing” or “WFOE”) was established as a wholly owned subsidiary of Yunji Holding in the PRC. Thereafter, the new PRC subsidiaries and Zhejiang Yunji Preferred E-commerce Co., Ltd., (“Yunji Preferred”), which is a VIE to hold Internet Content Provider (“ICP”) license, were established. Consequently, a series of contractual agreements were entered into among Yunchuang Sharing, Yunji Sharing, Yunji Preferred and its existing shareholders, including loan agreement, exclusive service agreement, equity interest pledge agreement, exclusive option agreement, proxy agreement and power of attorney, spousal consent letters that irrevocably authorized the existing shareholders designated by Yunchuang to exercise the equity owner’s rights over Yunji Sharing and Yunji Preferred. In preparation of its initial public offering, the Group underwent a reorganization (the “Reorganization”) starting from December 2017. After the Reorganization, the prior shareholding interests at Yunji Sharing were mirrored to the shareholding interests of the Group. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED) (b) History of the Group and Basis of Presentation (continued) The Group’s consolidated financial statements include the financial statements of the Company, its subsidiaries, consolidated VIEs and VIE’s subsidiaries. As of December 31, 2023, the Company’s principal subsidiaries are as follows: SCHEDULE OF PRINCIPAL SUBSIDIARIES Subsidiaries Place of incorporation Date of incorporation or acquisition Percentage of direct or indirect Principal activities Yunji Holding Limited Hong Kong December 20, 2017 100 Investment holding Zhejiang Youji Supply Chain Management Co., Ltd. Hangzhou November 30, 2016 100 Procurement Zhejiang Jiyuan Network Technology Co., Ltd. Hangzhou August 14, 2018 100 Sales of merchandise Hangzhou Jichuang Network Technology Co., Ltd. Hangzhou May 23, 2016 100 Investment holding Yunji Hongkong Limited Hong Kong August 25, 2015 100 Sales of merchandise Hangzhou Yunchuang Sharing Network Technology Co., Ltd. Hangzhou June 13, 2018 100 Investment holding Desking technology (HK) Co., Limited Hong Kong July 26, 2016 100 Investment holding and Financing solution Jironghuishang Commercial Factoring (Tianjin) Co., Ltd. Tianjin October 16, 2018 100 Financing solution Zhejiang Yunxuan Supply Chain Management Co., Ltd. Hangzhou August 9, 2018 100 Procurement Yunji Sharing Technology Co., Ltd. (“Yunji Sharing”) Hangzhou March 5, 2018 100 Investment holding Starting from the fourth quarter of 2023, Yunji Sharing, which was originally a VIE, was acquired by the Company and became a subsidiary of the Company. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED) (b) History of the Group and Basis of Presentation (continued) As of December 31, 2023, the Company’s principal consolidated VIEs and VIE’s subsidiaries are as follows: SCHEDULE OF VARIABLE INTEREST ENTITIES Place of incorporation Date of incorporation or acquisition Percentage of direct or indirect Principal activities VIEs and VIE subsidiaries Zhejiang Yunji Preferred E-Commerce Co., Ltd. Hangzhou June 13, 2018 100 Investment holding Zhejiang Jishang Preferred E-Commerce Co., Ltd. Hangzhou April 22, 2016 100 Procurement Zhejiang Jixiang E-commerce Co., Ltd. (“Jixiang”) Hangzhou August 14, 2018 100 E-Commerce Ningbo Meishan Bonded Port Area Jichuang Taihong Venture Capital Partnership (LP) (“Jichuang Taihong”) Ningbo January 15, 2019 99.75 Investment holding Hangzhou Jiweixiang Food Co., Ltd. Hangzhou May 8, 2020 100 Distribution sales Starting from the third quarter of 2020, Jichuang Taihong, which was originally a subsidiary of the Company, became a subsidiary of the Company’s consolidated VIEs as a result of equity transactions within the Group. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED) (c) Consolidated variable interest entities In order to comply with the PRC laws and regulations which prohibit or restrict foreign investments into companies involved in restricted businesses, the Group operates its Apps and other restricted businesses in the PRC through certain PRC domestic companies, whose equity interests are held by certain management members of the Company or onshore nominees of the Company (“Nominee Shareholders”). The Company obtained operational control over these PRC domestic companies by entering into a series of contractual arrangements with these PRC domestic companies and their respective Nominee Shareholders. These contractual agreements cannot be unilaterally terminated by the Nominee Shareholders or the PRC domestic companies. Management concluded that these PRC domestic companies are VIEs. As a result of these contractual arrangements, the Company’s wholly-owned subsidiaries have the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performances and are entitled to substantially all of the economic benefits from the VIEs and are obligated to absorb all of the VIEs’ expected losses. Therefore, the Company has determined that it is the ultimate primary beneficiary of the VIEs for accounting purposes in accordance with ASC 810, Consolidations under U.S. GAAP, and has consolidated the VIEs’ results of operations, assets and liabilities in the Group’s consolidated financial statements for all the periods presented. The principal terms of the agreements entered into amongst the VIEs, their respective shareholders and the WFOE are further described below. Loan Agreements Pursuant to the relevant loan agreements, the WFOE has granted interest-free loans to the relevant Nominee Shareholders of the relevant VIEs with the sole purpose of providing funds necessary for the capital injection to the relevant VIEs. Only the WFOE can require the Nominee Shareholders to settle the loan amount with the equity interests of relevant VIEs, subject to any applicable PRC laws, rules and regulations. The relevant Nominee Shareholder has agreed that any proceeds from sale of the Nominee Shareholder’s equity interest in the relevant VIE should be used to repay the loan amount to the WFOE. The term of the loan agreements is ten years and can be extended with the written consent of both parties before expiration. Exclusive Option Agreements Pursuant to the exclusive option agreement, the Nominee Shareholders of the VIEs have granted the WFOE the exclusive and irrevocable right to purchase or to designate one or more person(s) at its discretion to purchase part or all of the equity interests in the VIEs (the “Target Equity”) from the Nominee Shareholders at any time, and the VIEs have granted the WFOE the exclusive and irrevocable right to purchase or to designate one or more person(s) at its discretion to purchase part or all of the assets of the VIEs (the “Target Assets”) at any time. The total transfer price for the Target Equity and/or the Target Assets shall be equal to the loan provided by the WFOE to the Nominee Shareholders under the Loan Agreements. The VIEs and their Nominee Shareholders have agreed that without prior written consent of the WFOE, the Nominee Shareholders shall not sell, transfer, pledge or dispose of their equity interests, and the VIEs shall not sell, transfer, pledge or dispose of their assets, including but not limit to significant assets, significant revenue and significant business. In addition, the VIEs covenant that they shall not declare any dividend or change capitalization structure of the VIEs or enter into any loan or investment agreements. Proxy Agreement and Power of Attorney Pursuant to the Proxy Agreement and Power of Attorney, each of the Nominee Shareholders appointed the WFOE as their attorney-in-fact to exercise all shareholder rights under PRC law and the relevant articles of association, including but not limited to, calling and attending shareholders meetings, voting on their behalf on all matters requiring shareholder approval, including but not limited to the appointment and removal of directors, as well as the sale, transfer and disposal of all or part of the equity interests owned by such shareholders. The powers of attorney will remain effective for a given Nominee Shareholders until such shareholder ceases to be a shareholder of the relevant VIE or otherwise instructed by the WFOE. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED) (c) Consolidated variable interest entities (continued) Exclusive Service Agreement Pursuant to the exclusive service agreement, the WFOE has agreed to provide to the VIEs services, including, but not limited to, development, maintenance and update of technology, design, installation, daily management, maintenance and updating of the network system, hardware design, and marketing. The VIEs shall pay to the WFOE service fees determined by the WFOE in its sole discretion. The agreement has a term of 10 Equity Interest Pledge Agreements Pursuant to the relevant equity interest pledge agreements, the Nominee Shareholders of the VIEs have pledged 100 Spousal Consent Letters Pursuant to the Spousal Consent Letters, each Nominee Shareholder (except for Mr. Wenwei Shu, the shareholder of Hangzhou Chuanchou, who has no spouse yet), who is a natural person, and his or her spouse unconditionally and irrevocably agreed that the equity interests in the VIEs held by such Nominee Shareholder will be disposed of pursuant to the equity interest pledge agreements, the exclusive option agreements, the loan agreement and the proxy agreement and power of attorney. Each of their spouses agreed not to assert any rights over the equity interests in the VIEs held by their respective spouses. In addition, in the event that any spouse obtains any equity interests in any VIE held by his or her spouse for any reason, he or she agreed to be bound by the contractual arrangements. (d) Risks in relations to the VIE structure The following table set forth the assets, liabilities, results of operations and changes in cash, cash equivalents and restricted cash of the consolidated VIEs and their subsidiaries taken as a whole, which were included in the Group’s consolidated financial statements with intercompany transactions eliminated (It should be noted that the VIEs were not established until 2018 as the Reorganization occurred. The following disclosures present the operations and financial positions of the businesses that currently constitute the VIE entities as of and for the respective periods.): YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED) (d) Risks in relations to the VIE structure (continued) SCHEDULE OF RISKS IN RELATION IN BALANCE SHEET As of December 31, 2022 2023 RMB RMB Cash and cash equivalents 114,265 20,176 Restricted cash 42,109 27,169 Accounts receivable, net 23,683 60,608 Advance to suppliers 5,434 1,774 Inventories, net 2,635 2,491 Amounts due from the Group companies (1) 719,655 530,998 Amounts due from related parties 46 407 Prepaid expense and other current assets 81,307 58,441 Property, equipment and software, net 4,546 2,430 Long-term investments 214,450 206,152 Other non-current assets 6,417 5,485 Total assets 1,214,547 916,131 Accounts payable 71,007 48,198 Deferred revenue 16,398 6,836 Incentive payables to members 207,331 124,889 Members management fee payable 4,997 3,066 Other payable and accrued liabilities 91,469 65,587 Amounts due to the Group companies (2) 900,852 727,459 Amounts due to related parties 8,083 2,303 Total liabilities (3) 1,300,137 978,338 (1) Amounts due from the Group companies primarily consisted of inter-company receivables for the sales of goods and the rendering of services made by the VIEs and their subsidiaries on behalf of other Group companies. (2) Amounts due to the Group companies primarily consisted of inter-company payables for the purchase of goods and services made by other Group companies on behalf of the VIEs and their subsidiaries. (3) Amounts of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiary is RMB 399,285 250,879 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED) (d) Risks in relations to the VIE structure (continued) SCHEDULE OF RISKS IN RELATION IN FINANCIAL STATEMENTS Year Ended December 31, 2021 2022 2023 RMB RMB RMB Revenues: Third-party revenues 513,299 349,259 316,382 Intra-Group revenues 501,168 229,562 91,657 Total revenues 1,014,467 578,821 408,039 Operating cost and expenses: Third-party operating cost and expenses (906,559 ) (478,245 ) (272,602 ) Intra-Group operating cost and expenses (118,456 ) (178,573 ) (142,717 ) Total operating cost and expenses (1,025,015 ) (656,818 ) (415,319 ) Net income/(loss) 164,950 (75,329 ) (7,276 ) Net cash provided by transactions with external parties 539,673 651,432 215,227 Net cash used in transactions with intra-Group entities (497,190 ) (698,690 ) (453,916 ) Net cash generated by/(used in) operating activities 42,483 (47,258 ) (238,689 ) Net cash provided by transactions with external parties 8,102 5,216 9,028 Net cash (used in)/generated by transactions with intra-Group entities (180,000 ) 60,000 118,831 Net cash (used in)/generated by investing activities (171,898 ) 65,216 127,859 Net cash (used in)/provided by transactions with external parties (1,198 ) 197 - Net cash provided by transactions with intra-Group entities - 4,250 1,500 Net cash (used in)/generated by financing activities (1,198 ) 4,447 1,500 Effect of exchange rate changes on cash, cash equivalents (383 ) 1,127 301 Net (decrease)/increase in cash, cash equivalents and restricted cash (130,996 ) 23,532 (109,029 ) Cash, cash equivalents and restricted cash at beginning of year 263,838 132,842 156,374 Cash, cash equivalents and restricted cash at end of year 132,842 156,374 47,345 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 1. PRINCIPAL ACTIVITIES AND ORGANIZATION (CONTINUED) (d) Risks in relations to the VIE structure (continued) Under the contractual arrangements with the consolidated VIEs, the Company has the power to direct activities of the consolidated VIEs and VIEs’ subsidiaries through the Group’s relevant PRC subsidiaries, and can have assets transferred freely out of the consolidated VIEs and VIEs’ subsidiaries without restrictions. Therefore, the Company considers that there is no restriction requiring that any asset of the consolidated VIEs and VIEs’ subsidiaries can only be used to settle obligations of the respective VIEs and VIEs’ subsidiaries except for paid-in capital of VIEs and VIEs’ subsidiaries amounting to RMB 33,797 nil The chairman of the board of directors and the chief executive officer along with other nominees of the Company own the majority of the voting shares of the VIEs. The enforceability, and therefore the benefits, of the contractual agreements between the Company and the VIEs depend on these individuals enforcing the contracts. There is a risk that the benefits of ownership between the Company and the VIE may not be aligned in the future. Given the significance and importance of the VIEs, there would be a significant negative impact to the Company if these contracts were not enforced. The Group’s operations depend on the VIEs to honour their contractual agreements with the Group and the Company’s ability to control the VIEs also depends on the authorization by the shareholders of the VIEs to exercise voting rights on all matters requiring shareholder approval in the VIEs. The Company believes that the agreements on authorization to exercise shareholder’s voting power are legally enforceable and the possibility that it will no longer be able to control and consolidate the VIEs as a result of the aforementioned risks and uncertainties is remote. In addition, if the current structure of any of the contractual arrangements were found to be in violation of any existing PRC laws, or if the regulations or the interpretation of existing regulations change or are interpreted differently in the future, the Company may be subject to penalties, which may include but not be limited to, the cancellation or revocation of the Company’s business and operating licenses, being required to restructure the Company’s operations or terminate the Company’s operating activities. The imposition of any of these or other penalties may result in a material and adverse effect on the Company’s ability to conduct its operations. In such case, the Company may not be able to operate or control the VIEs and VIEs’ subsidiaries, which may result in deconsolidation of the VIEs and VIEs’ subsidiaries. The Group’s operations and businesses rely on the operations and businesses of its VIEs, which hold certain recognized and unrecognized revenue-producing assets. The recognized revenue-producing assets mainly include electronic equipment recorded in property, equipment and software. Unrecognized revenue-producing assets mainly consist of licenses and intellectual property. Licenses include operations licenses, such as licenses for online data processing and transaction processing business and internet content-related services. Intellectual property developed by the Group mainly consists of patents, copyrights, trademarks, and domain names. The Group’s operations and businesses may be adversely impacted if the Group loses the ability to use and benefit from assets held by these VIEs. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
PRINCIPAL ACCOUNTING POLICIES
PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
PRINCIPAL ACCOUNTING POLICIES | 2. PRINCIPAL ACCOUNTING POLICIES 2.1 Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below. 2.2 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. 2.3 Non-controlling interests For the Company’s consolidated subsidiaries, VIEs and VIEs’ subsidiaries, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non-controlling interests are classified as a separate line item in the equity section of the Group’s Consolidated Balance Sheets and have been separately disclosed in the Group’s Consolidated Statements of Comprehensive Income/(Loss) to distinguish the interests from that of the Company. 2.4 Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to valuation allowance of deferred tax assets, share-based compensation, allowances for credit losses, valuation and recognition of refund payable to members, the estimated useful lives of assets, long-term investments and reserve for excess and obsolete inventories. Estimates are based on historical experiences and on various assumptions that the Group believes are reasonable under current circumstances. Actual results could differ from those estimates. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.5 Foreign currencies The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Group’s holding entities incorporated in Cayman Islands and Hong Kong, China (“HK”) is the United States dollars (“US$”). The Group’s PRC subsidiaries, consolidated VIEs and VIEs’ subsidiaries and the other HK subsidiary determined their functional currency to be RMB. The determination of the respective functional currency is based on the criteria of ASC 830, Foreign Currency Matters and is based primarily on the currency the entity conducts its business in. Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates quoted by authoritative banks prevailing on the transaction dates. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded in the Consolidated Statements of Comprehensive Income/(Loss). Total exchange loss were RMB 1,300 15,697 6,743 The financial statements of the Group are translated from the functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gain and loss are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive (loss)/income as a component of shareholders’ equity. Total foreign currency translation adjustments to the Group’s other comprehensive (loss)/income were a loss of RMB 25,116 78,777 22,178 2.6 Convenience translation Translations of the Consolidated Balance Sheets, the Consolidated Statements of Comprehensive Income/(Loss) and the Consolidated Statements of Cash Flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB 7.0999 2.7 Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.7 Fair value measurements (continued) Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group mainly consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, amounts due from related parties, other receivables, equity securities with readily determinable fair values included in long-term investments, accounts payable, amounts due to related parties, accruals and other liabilities. As of December 31, 2022 and 2023, except for short-term investments and equity securities with readily determinable fair values included in long-term investments, the carrying values of cash and cash equivalents, restricted cash, trade receivables, amounts due from related parties, other receivables, trade payables, amounts due to related parties, accruals and other liabilities are approximated to their fair values due to the short-term maturity of these instruments. The Group reports short-term investments at fair value and discloses the fair value of these investments based on level 2 measurement, reports equity securities with readily determinable fair values included in long-term investments at fair value based on level 1 measurement, and for those investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, plus or minus subsequent adjustments for observable price changes (referred to as the measurement alternative). Under this measurement alternative, changes in the carrying value of the investments will be recognized in Consolidated Statements of Comprehensive Income/(Loss), whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Group classifies the valuation techniques on investments that use similar identifiable transaction prices as Level 2 of fair value measurements (Note 9). 2.8 Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term, highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less. 2.9 Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the Consolidated Balance Sheets. The Group’s restricted cash mainly represents cash held in the Group’s own bank accounts, the use of which is restricted to collecting cash on behalf of the merchants for products sold on Yunji App and transferring these cash receipts to the merchants under the bank’s custody. 2.10 Short-term investments Short-term investments are comprised of i) time deposits placed with banks with original maturities longer than three months but less than one year, ii) wealth management products issued by PRC banks or other financial institutions, which contains fixed or variable interest with original maturities within one year, and iii) debt securities for trading. The time deposits and wealth management products are generally not permitted to be redeemed early or are subject to penalties for redemption prior to maturities. These investments are stated at fair value. Changes in the fair value are reflected in financial income/(expense), net in the Consolidation Statements of Comprehensive Income/(Loss). YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.11 Accounts receivable, net Accounts receivables, net mainly represent amounts due from customers, including the funds extended by the Group to qualified customers, including the merchants, through its factoring arrangements (the “factoring receivables”) and are recorded net of allowance for credit losses. As of December 31, 2022 and 2023, the balance of the factoring receivables was RMB 80,484 29,147 2.12 Allowance for credit losses Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. Upon adoption of the new standard on January 1, 2020, there was no material cumulative effect of the adoption. The Group’s accounts receivable, prepaid expenses and other current assets, amounts due from related parties and other non-current assets are within the scope of ASC Topic 326. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers, the related receivables and other receivables which include size, type of the services, the counterparty or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. The key factors considered when determining the above allowances for credit losses include probability of default, loss given default and the non-performing loan ratio of commercial banks by industry, adjusted for forward-looking macroeconomic conditions. The following table summarized the details of the Company’s allowance for credit losses: SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES 2021 2022 2023 Balance at beginning of year 13,089 12,504 33,363 Allowance for credit losses 24,045 21,233 37,098 Write-offs (24,630 ) (374 ) (72 ) Balance at end of year 12,504 33,363 70,389 2.13 Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs of RMB 25,696 4,792 9,270 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.14 Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation. Property, equipment and software are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follow: SCHEDULE OF ESTIMATED USEFUL LIVES Category Estimated useful lives Building 20 40 Leasehold improvement Shorter of the term of the lease or the estimated useful lives of the assets Electronic equipment 3 Furniture 3 Software 3 years Vehicles 3 Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and betterment that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. The Group recognized the gain or loss on the disposal of property, equipment and software in the Consolidated Statements of Comprehensive Income/(Loss). Construction in progress represents direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these assets commences when the assets are ready for their intended use. 2.15 Long-term investments The Group’s investments include equity method investments, equity securities with readily determinable fair values and equity securities accounted for under measurement alternative. Investments in entities in which the Company does not control, but can exercise significant influence, are accounted for using the equity method of accounting in accordance with ASC topic 323, Investments—Equity Method and Joint Ventures. Under the equity method, the Company initially records its investments at cost. The Company subsequently adjusts the carrying amount of the investments to recognize the Company’s proportionate share of each equity investee’s net income or loss into earnings as well as distributions received after the date of investment. Under the equity method, the Group’s share of the post-acquisition profits or losses of the equity investees are recorded in equity in income of affiliates, net of tax in the Consolidated Statements of Comprehensive Income/(Loss). The excess of the carrying amount of the investment over the underlying equity in net assets of the equity investee, if any, represents goodwill and intangible assets acquired. When the Group’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.15 Long-term investments (continued) Equity securities with readily determinable fair values are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded in financial income/(expense), net through the Consolidated Statements of Comprehensive Income/(Loss). For equity investments which the Company cannot exercise significant influence and does not have a readily determinable fair value, the Company has elected to apply the measurement alternative and recorded these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes, in accordance with ASC topic 321, Investments– Equity Securities. Under this measurement alternative, changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. 2.16 Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. 2.17 Revenue recognition The Group adopted ASC Topic 606, “Revenue from Contracts with Customers”, for all periods presented. Consistent with the criteria of Topic 606, the Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Group expects to receive in exchange for those goods or services. To achieve that core principle, the Group applies the five steps defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. The Group allocates the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Revenue is recorded net of value-added tax. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.17 Revenue recognition (continued) Revenue recognition policies for each type of revenue steam are as follows: Sales of merchandise The Group primarily sells merchandise through its Yunji App. The Group presents the revenue generated from its sales of merchandise on a gross basis as the Group has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. In making this determination, the Group also assesses whether it is primarily obligated in these transactions, is subject to inventory risk, has latitude in establishing prices, or has met several but not all of these indicators. The cash collected from the sales of merchandise is initially recorded in deferred revenue in the Consolidated Balance Sheets and subsequently recognized as revenue when the receipt of merchandise is confirmed by the customers, which is the point that the control of the merchandise is transferred to the customer. For products sold through independent distributors (the “distribution sales”), control is transferred upon acceptance, based on the contract terms. The revenue is recorded net of value-added tax, discounts, coupons, incentives and return allowances. Return allowances are estimated based on historical experiences and updated at the end of each reporting period. Marketplace In 2019, the Group launched its marketplace business model, under which the Group operates its e-commerce platform, Yunji App, as a marketplace for third party merchants to sell their merchandise to the Yunji App users. When the transactions are completed on Yunji App, the Group charges merchants commissions at their respective agreed percentage of the amount of merchandise sold by merchants. The Group acts as an agent in these transactions and does not control the underlying merchandise provided by merchants before they are transferred to users, as the Group is not responsible for fulfilling the promise to provide the merchandise to users and has no inventory risk. In addition, the Group has no discretion in establishing prices of the merchandise provided by merchants. Revenues are recognized on a net basis to the extent of the commissions the Group earns at the point of users’ acceptance of merchandise. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.17 Revenue recognition (continued) Remaining performance obligations The remaining performance obligations associated with the Group’s sale of merchandise represents the cash collected upfront from the customers for their purchase of merchandise on Yunji App, but the underlying merchandise has not yet been received by the customers, which is included in the presentation of deferred revenue (Note 12). As of December 31, 2022 and 2023, the remaining performance obligation for sales of merchandise were RMB 18,106 6,063 The remaining performance obligations associated with the Group’s marketplace revenue represents the portion of commissions included in the payment collected from the users for their purchase of merchandise on Yunji App on behalf of the merchants, but the underlying merchandise has not yet been received by the users, which is included in the presentation of deferred revenue (Note 12). As of December 31, 2022 and 2023, the remaining performance obligation for marketplace revenue was RMB 2,596 3,144 Other businesses The Group offers loans to qualified customers, including the merchants, and charges an interest based on the principal through factoring arrangements. The Group extends loans to merchants for their expected orders in addition to the loans to the same merchants who factored their accounts receivable generated from their transactions completed on Yunji App with recourse. The Group also extends loans to unrelated customers who factored their accounts receivable derived from their own business with recourse. The Group records factoring receivables, which is included in accounts receivable, when the cash is advanced to its customers (Note 2.11). The interests are recognized over the term of loans, normally one year or less. From cash flow perspective, when the Group has legal rights to net settle the factoring receivables from merchants with its payable to merchants, the Group settles such factoring receivables with the payables to the same merchant respectively, as per agreement between the two parties. The Group also provides technical services, advertising services and membership services to customers. The service revenues mainly represent the service fees from third parties that are recognized over the service period. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.18 Users incentive programs The Group provides incentives to those referring members by paying a cash refund upon a successful merchandise referral (“Referral Incentives”); and those members for their self-purchase (“Self-purchase Incentives”). These unpaid balances recorded in incentive payables to members are maintained collectively in the members’ Yunji App accounts and can be withdraw in cash upon the members’ requests. For years ended December 31, 2021, 2022 and 2023, the long-aged balances of incentive payables to members of nil 48,709 69,545 The Group grants certain units of Yunbi and other coupons (collectively referred to as coupons), from time to time, to its customers at its discretion in different situations. Yunbi are not redeemable for cash and can be used as a coupon for the customer’s future purchase on the Yunji App. The coupons granted are not concurrent with a revenue transaction, thus not accounted for when they are granted and are recognized as a reduction of revenue when they are applied in future sales. The Group at its own discretion issues coupons in various forms to users without any concurrent transactions in place or any substantive action needed from the recipient. These coupons can be used in purchase of goods in a broad range of merchants as an immediate discount of their next purchase, some of which can only be used when the purchase amount exceeds pre-defined threshold. The Group settles with the merchants in cash for the coupons used by the users. As the users are required to make purchases of the merchants’ merchandises to redeem the coupons, the Group recognizes the amounts of redeemed coupons as sales and marketing expenses when the purchases are made. 2.19 Cost of revenues Cost of revenues consists of purchase price of merchandise, inbound shipping charges, write-downs of inventory and member training costs. Inbound shipping charges to receive merchandise from suppliers are included in the inventories and recognized as cost of revenues upon sale of the merchandise to the customers. 2.20 Fulfilment Fulfilment expenses represent packaging material costs and those costs incurred in outbound shipping, operating and staffing the Group’s fulfilment and customer service centers, including costs attributable to buying, receiving, inspecting and warehousing inventories, picking, packaging and preparing customer orders for shipment, processing payment and related transaction costs and responding to inquiries from customers, depreciation expenses, payroll costs including share-based compensation expenses, and other daily expenses which are related to the purchasing functions. Fulfilment costs also contain third party payment transaction fees, such as bank card processing and debit card processing fees. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.21 Sales and marketing Sales and marketing expenses comprise primarily of member management fees, promotion expenses, marketplace coupons, payroll costs including share-based compensation expenses, depreciation expenses and other daily expenses which are related to the sales and marketing functions. The Group engages third party vendors to provide member management services, which are ultimately performed by service managers who enter into employment contract with the third party vendors. Certain of the Group’s members (customers) have been engaged by third party vendors to serve as service managers. The Group has concluded that the member management services provided by the service managers, including those who are also members, are for distinct services at fair value, and records the member management fees paid to the third party vendors as sales and marketing expenses. 2.22 Technology and content Technology and content expenses are expensed as incurred and primarily consist of payroll costs including share-based compensation expenses, rental expenses, costs associated with the computing, storage and telecommunications infrastructure for internal use that support the Group’s system and Yunji App services and other expenses which are related to the technology and content functions, which are responsible for technology research and development and content editing in the Group. The Group accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. Costs capitalized for developing such software application were not material for the periods presented. 2.23 General and administrative General and administrative expenses consist of payroll costs including share-based compensation expenses and other expenses which are related to the general corporate functions, including accounting, finance, tax, legal and human relations, costs associated with use by these functions of facilities and equipment, such as depreciation expenses, rental and other general corporate related expenses. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.24 Share-based compensation The Company grants restricted share units (“RSUs”) and share options of the Company to eligible employees and accounts for these share-based awards in accordance with ASC 718 Compensation — Stock Compensation. Employees’ share-based awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at grant date if no vesting conditions are required, or b) using a straight-line method over the requisite service period, which is the vesting period. For nonemployees’ share-based awards, the Group adopted ASU 2018-07 in 2019, according to ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, it clarifies that equity-classified nonemployee share-based payment awards are measured at the grant date. The definition of the term grant date is amended to generally state the date at which a grantor and a grantee reach a mutual understanding of the key terms and conditions of a share-based payment award. Nonemployees’ are measured at the grant date fair value of the awards and recognized as expenses using a straight-line method over the requisite service period, which is the vesting period. All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Before the Group’s initial public offering, the fair value of RSUs were assessed using the income approach/discounted cash flow method, with a discount for lack of marketability given that the shares underlying the awards were not publicly traded at the time of grant. This assessment required complex and subjective judgments regarding the Company’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operat |
CONCENTRATION AND RISKS
CONCENTRATION AND RISKS | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION AND RISKS | 3. CONCENTRATION AND RISKS 3.1 Concentration of credit risk Financial instruments that potentially subject the Group to the concentration of credit risks consist of cash and cash equivalents, restricted cash, and short-term investments. The maximum exposures of such assets to credit risk are their carrying amounts as of the balance sheet dates. As of December 31, 2021, 2022 and 2023, substantially all of the Company’s cash and cash equivalents, restricted cash and short-term investments were held in major financial institutions located in Mainland China and Hong Kong, which management considers to be of high credit quality based on their credit ratings. The Company believes that no significant credit risk exists as these financial institutions have high credit quality. 3.2 Concentration of customers and suppliers Substantially all revenue was derived from customers located in China. There are no suppliers from whom purchases individually represent greater than 10% of the total purchases of the Group in any of the periods presented. Customers contributed more than 10% of total revenues are as below: SUMMARY OF CUSTOMERS CONTRIBUTION Year ended December 31, 2021 2022 2023 RMB RMB RMB Customer A — 17 % 24 % 3.3 Foreign currency exchange rate risk Since June 2010, the RMB has fluctuated against the US$, at times significantly and unpredictably. The appreciation of the RMB against the US$ was approximately 2.3 9.24 1.70 |
SHORT-TERM INVESTMENT
SHORT-TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2023 | |
Short-term Investment | |
SHORT-TERM INVESTMENT | 4. SHORT-TERM INVESTMENT SCHEDULE OF SHORT TERM INVESTMENTS As of December 31, 2022 2023 RMB RMB Debt security for trading (1) - 7,195 Time deposits 142,357 - Wealth management products (2) 69,646 - Total short-term investment 212,003 7,195 (1) In October 2023, the Group acquired a debt security at a cash consideration of US$ 1 7.16 31 (2) The Group’s wealth management products mainly consisted of financial products issued by commercial banks in China with a variable interest rate indexed to the performance of underlying assets and a maturity date within one year when purchased or revolving terms. For the years ended December 31, 2021, 2022 and 2023, the weighted average return of the wealth management products were 5.2 2.04 3.91 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET SCHEDULE OF ACCOUNTS RECEIVABLE 2022 2023 As of December 31, 2022 2023 RMB RMB Receivables from the distribution sales 23,018 62,576 Factoring receivables 80,484 29,147 Receivables from merchants under marketplace business 4,590 6,613 Receivables from sales channels on other platforms 1,699 894 Receivables from other revenue 1,082 241 Less: allowance for credit losses (16,762 ) (35,159 ) Total accounts receivable, net 94,111 64,312 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET Prepaid expenses and other current assets consist of the following: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS 2022 2023 As of December 31, 2022 2023 RMB RMB Loan receivables (1) -Secured (1) 139,292 49,697 -Unsecured (1) 130,022 31,200 VAT-input deductible 25,708 25,328 Receivables from third-party payment settlement platform (2) 34,179 17,745 Deposits 13,917 5,489 Receivables from disposal of a subsidiary (3) 1,964 2,927 Others 31,493 14,878 Less: allowance for credit losses (14,510 ) (13,017 ) Total prepaid expenses and other current assets, net 362,065 134,247 (1) Loan receivables represent the principal and interest to be collected on loans provided by the Group to third-party companies. As of December 31, 2023, there were two unsecured loans provided to two companies. One loan with principal amount of RMB 31,200 8 10,000 60,000 4.35 50,000 As of December 31, 2023, the secured loan receivable balance with principal of US$ 15 106,241 7 49,579 8 56,662 118 As of December 31, 2022, the secured and unsecured loans include six loans to six third-party companies. Four out of these six loans with aggregated principal amount of US$ 20 139,292 78,000 50,000 , four-year term starting from December 2019, and with a lump sum interest rate of 20 % would be due for repayment within one year. The remaining loan was the one to a customer with total principal amount of RMB 1,000 . (2) Receivables from third-party payment settlement platform represent amount due from the third-party on-line payment service providers in relation to their processing of payments to the Group. (3) In the fourth quarter of 2020, the Group disposed of a subsidiary, Wuhan Yunteng Logistics Co., Ltd. (“Wuhan Yunteng”), to a third party for a total cash consideration of RMB 26,676 1 2,224 11,133 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | 7. INVENTORIES, NET SCHEDULE OF INVENTORY, NET 2022 2023 As of December 31, 2022 2023 RMB RMB Merchandise and packing materials 60,043 50,061 Less: inventory write-downs (5,392 ) (7,345 ) Total inventories, net 54,651 42,716 |
PROPERTY, EQUIPMENT AND SOFTWAR
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, EQUIPMENT AND SOFTWARE, NET | 8. PROPERTY, EQUIPMENT AND SOFTWARE, NET Property, equipment and software, net, consist of the following: SCHEDULE OF PROPERTY EQUIPMENT AND SOFTWARE 2022 2023 As of December 31, 2022 2023 RMB RMB Buildings (1) - 171,582 Leasehold improvement 32,340 29,681 Electronic equipment 16,471 15,489 Software 7,092 6,728 Furniture 3,728 5,687 Construction in progress (1) 163,696 1,418 Vehicles 690 631 Subtotal 224,017 231,216 Less: accumulated depreciation (2) (55,089 ) (55,765 ) Total property, equipment and software, net 168,928 175,451 (1) In June 2021, the Group entered into a purchase agreement with a third-party company to purchase an office building. The Group paid 50 % of the total amount with consideration of RMB 81,125 in 2021 and paid the remaining 50 % in amount of RMB 80,732 in 2022. In June 2022, the new office building has been delivered by the third-party company to the Group and all prepayment except for the value added tax of the office building were recorded as construction in progress upon delivery in 2022. In April 2023, the office building has been put into use with estimated useful life of 40 (2) Depreciation expenses were RMB 15,985 7,718 6,545 No YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Schedule Of Long-term Investments | |
LONG-TERM INVESTMENTS | 9. LONG-TERM INVESTMENTS The Group’s long-term investments consist of the following: SCHEDULE OF LONG-TERM INVESTMENTS 2022 2023 As of December 31, 2022 2023 RMB RMB Equity method investments (a) 72,111 105,528 Equity method investments 72,111 105,528 Equity securities accounted for under measurement alternative (b) 227,371 220,981 Equity securities accounted for under measurement alternative 227,371 220,981 Equity securities with readily determinable fair values (c) 114,843 37,650 Equity securities with readily determinable fair values 114,843 37,650 Total long-term investments 414,325 364,159 Major investments made by the Company during the years ended December 31, 2021, 2022 and 2023 are summarized as follows: (a) Equity method investments The Group’s equity method investments are investments in limited partnership funds as a limited partner and in limited liability companies. In 2022, total cash consideration of RMB 50,000 1 6,367 30,000 1.5 10,770 55,442 96,904 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 9. LONG-TERM INVESTMENTS (CONTINUED) (b) Equity securities accounted for under measurement alternative The investments accounted for under measurement alternative mainly represent the Group’s equity investment over which the Group is not able to exercise significant influence in the form of ordinary shares of the investee and investment in a limited partnership fund as a limited partner with so minor interest. i) Change from equity method investment to equity securities accounted for under measurement alternative The Group previously accounted for the investment in the investee A using equity method. In 2021, Yunji disposed of the investment in investee A with a gain of RMB 110.5 2.26 In November 2021, with a new series of external financing of the enlarged A Group, the Company remeasured its investment to fair market value and recorded the unrealized changes in fair value with a gain of RMB 79,541 In July 2022, with a new series of external financing of the investee B, the Company remeasured its investment to fair market value and recorded the unrealized changes in fair value with a gain of RMB 6,475 ii) Investment in the limited partnership fund The initial investment in the limited partnership fund was RMB 20,000 248 iii) Impairment of equity securities accounted for under measurement alternative As of December 31, 2022 and 2023, there were RMB 5,700 9,427 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 9. LONG-TERM INVESTMENTS (CONTINUED) (c) Equity securities with readily determinable fair values Investment in GXG, Tencent and Meituan In May 2019, the Group purchased 22,740,000 13 13 89,517 In February 2021, the Group purchased 106,600 55,000 77.3 65,065 As of December 31, 2022 and 2023, based on the market price, the Group re-measured the investments at a fair value of RMB 114,843 37,650 32,902 78,739 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Other Non-current Assets | |
OTHER NON-CURRENT ASSETS | 10. OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: SCHEDULE OF OTHER NON CURRENT ASSETS 2022 2023 As of December 31, 2022 2023 RMB RMB Long-term loan receivables (Note 6) - Unsecured - 60,000 - Secured - 56,662 Long-term receivables from disposal of a subsidiary (Note 6) 13,137 11,133 Prepayment of commercial properties (1) 78,000 78,000 Others 7,368 5,485 Less: allowance for doubtful accounts (2,091 ) (22,213 ) Total other non-current assets 96,414 189,067 (1) In 2020, the Group purchased commercial properties from a third party and paid the full amount in advance with consideration of US$ 11.25 78,000 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE | 11. ACCOUNTS PAYABLE SCHEDULE OF ACCOUNTS PAYABLE 2022 2023 As of December 31, 2022 2023 RMB RMB Merchandise purchase payables 87,489 61,004 Warehouse and logistic fees payables 1,311 3,074 Payable to merchants (1) 50,103 32,704 Total accounts payable 138,903 96,782 (1) Payable to merchants represents the unpaid balances to the merchants of cash collected by the Group on behalf of the merchants for products sold on Yunji App when the Group is viewed as the agent in the sales arrangement. |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Revenue | |
DEFERRED REVENUE | 12. DEFERRED REVENUE SCHEDULE OF DEFERRED REVENUE 2022 2023 As of December 31, 2022 2023 RMB RMB Deferred merchandise revenue 18,106 6,063 Deferred marketplace revenue 2,596 3,144 Deferred other revenue 1,046 205 Total deferred revenue 21,748 9,412 The revenue recognized in the years ended December 31, 2021, 2022 and 2023 that was included in deferred revenue as of the beginning of each respective period were RMB 50,951 105,752 21,748 |
INCENTIVE PAYABLES TO MEMBERS
INCENTIVE PAYABLES TO MEMBERS | 12 Months Ended |
Dec. 31, 2023 | |
Incentive Payables To Members | |
INCENTIVE PAYABLES TO MEMBERS | 13. INCENTIVE PAYABLES TO MEMBERS SCHEDULE OF INCENTIVE PAYABLES TO MEMBERS 2022 2023 As of December 31, 2022 2023 RMB RMB Incentive payables to members 207,331 124,889 Incentive payable to members represents unpaid balances of discounts granted to members for their self-purchase and referral incentives earned by the members for their referral efforts and is transferred to the members’ individual Yunji App accounts. These unpaid balances are maintained collectively in the members’ Yunji App accounts and can be withdraw as cash upon the members’ requests. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
MEMBER MANAGEMENT FEES PAYABLE
MEMBER MANAGEMENT FEES PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
Member Management Fees Payable | |
MEMBER MANAGEMENT FEES PAYABLE | 14. MEMBER MANAGEMENT FEES PAYABLE SCHEDULE OF MEMBERS MANAGEMENT FEES PAYABLE 2022 2023 As of December 31, 2022 2023 RMB RMB Member management fees payable 11,087 4,373 The Group engages third party vendors to provide management service in the member’s community, including organizing product launch events, collecting members or Yunji App users’ feedbacks, etc. Member management fees payable represents the Group’s unpaid balance of such service fees to the third party vendors. For the years ended December 31, 2021, 2022 and 2023, member management fees were RMB 174,798 101,984 57,373 |
OPERATING LEASE
OPERATING LEASE | 12 Months Ended |
Dec. 31, 2023 | |
Operating Lease | |
OPERATING LEASE | 15. OPERATING LEASE The Group has operating leases primarily for office and operation space. The Group’s operating lease arrangements have remaining terms of one year five years Operating lease costs were RMB 2,774 1,742 Supplemental cash flow information related to leases were as follows: SCHEDULE OF OPERATING LEASES SUPPLEMENTAL CASH FLOW INFORMATION RMB RMB Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities 4,184 5,332 Right-of-use assets obtained in exchange for operating lease liabilities - 18,106 Supplemental consolidated balance sheet information related to leases were as follows: SCHEDULE OF OPERATING LEASES SUPPLEMENTAL BALANCE SHEET INFORMATION 2022 2023 As of December 31, 2022 2023 RMB RMB Right-of-use assets 231 16,507 Operating lease liabilities - current 1,162 3,376 Operating lease liabilities - non-current 145 11,122 Total lease liabilities 1,307 14,498 Weighted average remaining lease term 1.18 4.50 Weighted average discount rate 4.75 % 4.75 % YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 15. OPERATING LEASE (CONTINUED) Maturities of lease liabilities are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES As of December 31, 2023 RMB 2024 4,018 2025 4,018 2026 4,018 2027 4,018 Total operating lease payments 16,072 Less: imputed interest (1,574 ) Total operating lease 14,498 |
OTHER PAYABLE AND ACCRUED LIABI
OTHER PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
OTHER PAYABLE AND ACCRUED LIABILITIES | 16. OTHER PAYABLE AND ACCRUED LIABILITIES SCHEDULE OF OTHER PAYABLE AND ACCRUED LIABILITIES As of December 31, 2022 2023 RMB RMB Merchants deposits (1) 42,452 31,369 Supplier deposits (2) 32,997 25,538 Salaries and welfare payable 28,735 18,141 Taxes payable 15,531 14,555 Accrued marketing and other operational expenses 12,682 7,336 Accrued professional fees 10,165 6,782 Others 2,965 5,479 Total other payable and accrued liabilities 145,527 109,200 (1) The deposit obtained from the merchants is to ensure implementation of Yunji App’s platform policy and good product quality to be sold by the merchants on Yunji App under the Group’s marketplace business model. The deposit can be withdrawn immediately after the merchants terminate its online shop on Yunji App. (2) The deposit obtained from the suppliers is to ensure inventory level ready for the Group to purchase and good product quality under the Group’s sales of merchandise business model. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
OTHER OPERATING INCOME
OTHER OPERATING INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING INCOME | 17. OTHER OPERATING INCOME SCHEDULE OF OTHER OPERATING INCOME Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB VAT-in super deduction and other tax returns (1) 2,323 2,369 518 Government grants (2) 48,180 15,110 13,123 Others 3,913 4,120 1,257 Total other operating income 54,416 21,599 14,898 (1) From 2019, in accordance with “the Announcement on Relevant Policies for Deepening the Value-added Tax Reform” and relevant government policies announced by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs of China, one China VIE of the Company, as a consumer service company, is allowed to enjoy additional 10 (2) Government grants mainly represent cash subsidies received from PRC local governments for companies operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. These cash subsidies were not subject to meeting any specific future conditions. |
OTHER NON-OPERATING INCOME_(LOS
OTHER NON-OPERATING INCOME/(LOSS), NET | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER NON-OPERATING INCOME/(LOSS), NET | 18. OTHER NON-OPERATING INCOME/(LOSS), NET SCHEDULE OF NON-OPERATING INCOME/(LOSS) NET Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Gain/(loss) on disposal of long-term investments and subsidiaries, net (Note 9) 112,354 (1,792 ) (23 ) Others 555 3,864 (2,382 ) Total other non-operating income/(loss), net 112,909 2,072 (2,405 ) |
FINANCIAL INCOME_(EXPENSE), NET
FINANCIAL INCOME/(EXPENSE), NET | 12 Months Ended |
Dec. 31, 2023 | |
Financial Incomeexpense Net | |
FINANCIAL INCOME/(EXPENSE), NET | 19. FINANCIAL INCOME/(EXPENSE), NET SCHEDULE OF FINANCIAL INCOME/(EXPENSE), NET Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Interest income 15,947 1,606 13,429 Interest expense (4,181 ) (2,462 ) (631 ) Gains/(loss) from fair value changes of equity securities investments, net (Note 9) 59,690 (28,326 ) (80,923 ) Bank charges (529 ) (276 ) (161 ) Others 9,134 15,102 8,060 Total financial income/(expense), net 80,061 (14,356 ) (60,226 ) YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXATION | 20. TAXATION (a) Value added tax (“VAT”) and surcharges The Group is subject to statutory VAT rate of 9% 13% The Group is subject to VAT at the rate of 9% 6% (b) Income tax Cayman Islands Under the current laws of the Cayman Islands, the Company and its subsidiaries incorporated in the Cayman Islands are not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders. Hong Kong Under the current Hong Kong Inland Revenue Ordinance, the subsidiaries of the Group incorporated in Hong Kong are subject to 8.25% 2 16.5% China On March 16, 2007, the National People’s Congress of PRC enacted a new Enterprise Income Tax Law (“new EIT law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to enterprise income tax at a uniform rate of 25% 15% three years Jixiang obtained its HNTE certificate on December 16, 2021 and was eligible to enjoy a preferential tax rate of 15% The Group’s other PRC subsidiaries, VIEs and VIEs’ subsidiaries are subject to the statutory income tax rate of 25% According to relevant laws and regulations promulgated by the State Administration of Tax of the PRC effective from 2008 onwards, enterprises engaging in research and development activities are entitled to claim 150% 50 175% 75% YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 20. TAXATION (CONTINUED) (b) Income tax (continued) Withholding tax on undistributed dividends The new EIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “actual management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% 25% The new EIT law also imposes a withholding income tax of 10% 5% 25% As of December 31, 2022 and 2023, the Group does not have any plan to require its PRC subsidiaries to distribute their retained earnings and intends to retain them to operate and expand its business in the PRC. Accordingly, no YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 20. TAXATION (CONTINUED) (b) Income tax (continued) Composition of income tax The components of income/(loss) before tax are as follow: SCHEDULE OF INCOME BEFORE INCOME TAX, DOMESTIC AND FOREIGN Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Income/(loss) before tax Income/(loss) from PRC entities 244,163 (113,848 ) (83,575 ) (Loss)/income from overseas entities (35,141 ) 7,300 (66,418 ) Total Income/(loss) before tax 209,022 (106,548 ) (149,993 ) SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Current income tax expense 17,803 9,866 7,851 Deferred income tax expense 42,698 14,925 - Total income tax expense 60,501 24,791 7,851 Reconciliation of the differences between statutory tax rate and the effective tax rate Reconciliation of the differences between the statutory EIT rate applicable to losses of the consolidated entities and the income tax expenses of the Group: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 PRC Statutory income tax rate 25 % 25 % 25 % Effect on tax rates in different tax jurisdiction 5 % -10 % -6 % The effect of change in the tax rate of subsidiaries 0 % 4 % -1 % Non-deductible expenses 1 % -1 % -1 % Additional deduction for research and development expenditures -6 % 8 % 5 % Share-based compensation 4 % -4 % 0 % Non-taxable income -2 % 1 % 1 % Permanent book-tax differences 4 % -3 % -4 % Change in valuation allowance ( 1 ) -2 % -43 % -24 % Effective tax rates 29 % -23 % -5 % YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 20. TAXATION (CONTINUED) (b) Income tax (continued) (1) Included the impact of the valuation allowance decrease due to disposal of subsidiaries and tax losses forfeiture in 2023. (c) Deferred tax assets and deferred tax liabilities The following table sets forth the significant components of the deferred tax assets: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2022 2023 As of December 31, 2022 2023 RMB RMB Deferred tax assets Net accumulated losses-carry forward 130,370 140,351 Allowance for credit losses 7,717 18,570 Gain or loss from changes in fair values 1,142 12,841 Inventory write-downs 1,348 1,836 Deferred membership program revenue 31 - Refund payable to members 6 - Others 69 3,818 Less: valuation allowance (140,189 ) (173,529 ) Total deferred tax assets 494 3,887 2022 2023 As of December 31, 2022 2023 RMB RMB Deferred tax liabilities Gain or loss from changes in fair values - 156 Others 494 3,731 Total deferred tax liabilities 494 3,887 The Group offsets deferred tax assets and deferred tax liabilities relating to income taxes levied by the same tax authority on same tax payee, and presents the net amount of deferred tax assets and deferred tax liabilities on its consolidated balance sheets. The net deferred tax assets were both nil nil YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 20. TAXATION (CONTINUED) Movement of valuation allowance SUMMARY OF VALUATION ALLOWANCE Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Balance at beginning of the year (156,150 ) (96,489 ) (140,189 ) Changes of valuation allowance ( 1 ) 59,661 (43,700 ) (33,340 ) Balance at end of the year (96,489 ) (140,189 ) (173,529 ) (1) Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination as of December 31, 2022 and 2023, the Group evaluates a variety of factors supporting the utilization of carry-forwards through a forecast of future taxable profits for each impacted entity within a specific tax jurisdiction, including: the Group’s entities’ operating history and forecast, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2022 and 2023, valuation allowances on a large part of deferred tax assets were provided because it was more likely than not that such portion of deferred tax will not be realized based on the Company’s estimate of future taxable incomes of all its subsidiaries. As of December 31, 2023, net operating loss carry forwards from PRC entities will expire as follows: SUMMARY OF OPERATING LOSS CARRYFORWARDS RMB 2024 277,140 2025 162,394 2026 20,002 2027 145,181 2028 and onwards 140,444 745,161 As of December 31, 2023, the Group had tax losses carry forwards of approximately RMB 745,161 |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
ORDINARY SHARES | 21. ORDINARY SHARES In November 2017, the Company was incorporated as limited liability company with authorized share capital of US$ 50 500,000,000 0.0001 1 In January 2018, the shares were subdivided into 10,000,000,000 0.000005 1 ordinary share was subdivided into 20 ordinary shares YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 21. ORDINARY SHARES (CONTINUED) As of December 31, 2019 and 2020, 20,000,000,000 2,158,791,222 1,208,831,222 949,960,000 2,133,265,412 1,183,305,412 949,960,000 2,129,405,572 1,179,445,572 949,960,000 Immediately prior to the completion of the IPO, all classes of preferred shares of the Company were converted and re-designated as 895,216,752 201,440,000 949,960,000 one share with ten votes On May 3, 2019, the Company completed its IPO on NASDAQ Global Select Market. The Company offered 110,000,000 11,000,000 Subsequently on June 4, 2019, over-allotment option were electedly exercised and the Company issued additional 2,174,470 1.10 On August 28, 2019, the Company was authorized by the Board of Directors to, from time to time, acquire up to an aggregate of US$ 20 40,076,270 40,463,770 0.09 0.70 On March 17, 2022, the Company was authorized by the Board of Directors to, from time to time, acquire up to an aggregate of US$ 20 20 September 16, 2022 and up to March 15, 2023 179,701,700 0.07 0.12 From June 20, 2023, the Company changed its ADS ratio from each ADS representing 10 Class A ordinary shares to each ADS representing 100 Class A ordinary shares YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
CONVERTIBLE REDEEMABLE PREFERRE
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Redeemable Preferred Shares | |
CONVERTIBLE REDEEMABLE PREFERRED SHARES | 22. CONVERTIBLE REDEEMABLE PREFERRED SHARES In July 2015, pursuant to an investment agreement, the Company issued 373,000,000 50,000 1,000 In November 2016 and January 2017, pursuant to an investment agreement, the Company issued 272,600,000 33,160 20,000 138,532 644 1,754 8,095 6,509 Furthermore, the Company issued 116,600,000 0.000005 In February 2018, pursuant to a share purchase agreement, the Company issued 110,803,324 100,000 630,010 14,062 2,000 12,600 50 1,000 50 1,108,033 In June and November 2018, pursuant to a share purchase agreement, the Company issued 21,105,395 20,000 128,416 5,867 The Series Seed, Series A, Series B and Series B+ Preferred Shares are collectively referred to as the “Preferred Shares”. All series of Preferred Shares have the same par value of US 0.000005 All of Preferred Shares were converted into Class A ordinary shares immediately upon the completion of the Company’s initial public offerings on May 3, 2019 (Note 21). Prior to their conversion, Preferred Shares were entitled to certain preference with respect to conversion, redemption, dividends and liquidation. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 23. SHARE-BASED COMPENSATION On December 19, 2017, the Company adopted the 2017 Share Incentive Plan (“the 2017 Plan”), which allows the compensation committee to grant options and restricted share units (“RSU”) of the Company to its directors, employees, and etc. (collectively, the “Grantees”) to acquire ordinary shares of the Company at an exercise price as determined by the Compensation Committee at the time of grant. The 2017 Plan was amended and restated in its entirety in March 2019 and referred to as the 2019 Plan. The awards granted and outstanding under the 2017 Plan survive the termination of the 2017 Plan and remain effective and binding under the 2019 Plan. According to the 2019 Plan, 227,401,861 Since adoption of the 2017 Plan, the Company granted options and RSUs to employees. All options and RSUs granted have a contractual term of six years from the grant date, and the vest over a period of four years of continuous service, half (1/2) of which vest upon the second anniversary of the stated vesting commencement date and one-fourth (1/4) of the remaining will vest upon the third and fourth anniversaries of the stated vesting commencement date. Under the option plan, options are exercisable subject to the grantee’s continuous service. The Company accounted for the share-based compensation costs on a straight-line bases over the requisite service period for the award based on the fair value on their respectively grant date. On December 19, 2017, June 30, 2018, November 28, 2018, and January 31, 2019 the Company granted 73,225,200 12,021,500 5,540,000 4,968,000 5,000,000 19,800,000 14,925,000 720,000 10,409,050 3,332,040 On January 1, 2020, the Company granted 356,210 49,964,000 13,890,000 On January 1, 2021 and February 1, 2021, the Company granted 29,170,000 26,818,000 On January 1, 2022 and August 1, 2022, the Company granted 8,690,000 1,160,000 On February 1, 2023 and July 1, 2023, the Company granted 400,000 2,500,000 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 23. SHARE-BASED COMPENSATION (CONTINUED) (a) Options The following table sets forth the stock options activity for the years ended December 31, 2021, 2022 and 2023: SCHEDULE OF STOCK OPTION ACTIVITY Number of shares Weighted-average exercise price Weighted average remaining contractual term Aggregate US$ 000’US$ Outstanding as of December 31, 2021 61,930,440 0.21 1.73 - Granted - - Forfeited (64,980 ) 0.20 Exercised (773,640 ) 0.09 Expired - - Outstanding as of December 31, 2022 61,091,820 0.22 0.89 - Granted - Forfeited (173,870 ) 0.23 Exercised - Expired (46,562,380 ) 0.09 Outstanding as of December 31, 2023 14,355,570 0.61 0.27 - Vested and expected to vest as of December 31, 2023 14,355,570 Exercisable as of December 31, 2023 14,355,570 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the underlying stock at each reporting date (December 31, 2022: US$ 0.08 0.71 The Group uses the Binominal option pricing model to estimate the fair value of stock options. The assumptions used to value the Company’s options modified were as follow: SCHEDULE OF FAIR VALUE OF STOCK OPTION 2022 2023 Exercise price (US$) N/A N/A Exercise multiple N/A N/A Risk-free interest rate N/A N/A Expected term (in years) N/A N/A Expected dividend yield N/A N/A Expected volatility N/A N/A Expected forfeiture rate (post-vesting) N/A N/A Fair value of the underlying shares on the date of options grants (US$) N/A N/A Fair value of share option (US$) N/A N/A YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 23. SHARE-BASED COMPENSATION (CONTINUED) (a) Options (continued) Risk-free interest rate is estimated based on the yield curve of US Sovereign Bond as of the option valuation date. The expected volatility at the grant date and each option valuation date is estimated based on annualized standard deviation of daily stock price return of comparable companies with a time horizon close to the expected expiry of the term of the options. The Company has never declared or paid any cash dividends on its capital stock, and the Group does not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the options. Share-based compensation expense is recorded on a straight-line basis over the requisite service period, which is generally four years from the date of grant. The Company recognized share-based compensation expenses of RMB 20,782 1,828 5,628 As of December 31, 2022 and 2023, there was RMB 616 1 0.4 0.08 (b) Restricted share units A summary of activities of the service-based RSUs for the years ended December 31, 2021, 2022 and 2023 is presented below: SCHEDULE OF SERVICE BASED RSU Number of RSUs Weighted-Average Grant-Date Fair Value US$ Unvested at December 31, 2021 45,704,350 0.45 Granted 9,850,000 0.63 Vested (10,326,250 ) Forfeited (20,306,000 ) Unvested at December 31, 2022 24,922,100 0.45 Granted 2,900,000 0.02 Vested (1,587,950 ) Forfeited (11,609,400 ) Unvested at December 31, 2023 14,624,750 0.34 The fair value of each restricted share units granted with service conditions is estimated based on the fair market value of the underlying ordinary shares of the Company on the date of grant. As of December 31, 2022 and 2023, 10,326,250 1,587,950 For the years ended December 31, 2021, 2022 and 2023, total share-based compensation expenses recognized by the Group for the RSUs granted were RMB 35,128 28,322 4,743 As of December 31, 2022 and 2023, there was RMB 14,592 3,489 1.87 1.17 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 24. FAIR VALUE MEASUREMENTS As of December 31, 2022 and 2023, information about inputs into the fair value measurement of the Group’s assets and liabilities that are measured or disclosed at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: SCHEDULE OF FAIR VALUE MEASUREMENT OF GROUP ASSETS AND LIABILITIES Fair value measurement at reporting date using Description Fair value Quoted Prices in Active Significant Other Significant RMB RMB RMB RMB Assets: Short-term investments Time deposits 142,357 - 142,357 - Wealth management products 69,646 - 69,646 - Long-term investments Equity securities with readily determinable fair value 114,843 114,843 - - Equity securities accounted for under measurement alternative 227,371 - 227,371 - Total assets 554,217 114,843 439,374 - Fair value measurement at reporting date using Description Fair value Quoted Prices in Active Significant Other Significant RMB RMB RMB RMB Assets: Short-term investments Debt securities for trading 7,195 - 7,195 - Long-term investments Equity securities with readily determinable fair value 37,650 37,650 - - Equity securities accounted for under measurement alternative 220,981 - 220,981 - Total assets 265,826 37,650 228,176 - When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. Following is a description of the valuation techniques that the Group uses to measure the fair value of assets that the Group reports in its Consolidated Balance Sheets at fair value on a recurring basis. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 24. FAIR VALUE MEASUREMENTS (CONTINUED) Short-term investments Short-term investment consists of wealth management products, time deposits and equity securities with readily determinable fair value, which are valued by the Group on a recurring basis. The Group values its short-term wealth management products investments held in certain banks using model-derived valuations based upon discounted cash flow, in which significant inputs, mainly including expected return, are observable or can be derived principally from, or corroborated by, observable market data, and accordingly, the Group classifies the valuation techniques that use these inputs as Level 2. The expected return of the financial products were determined based on the prevailing interest rates in the market. Long-term investments Equity securities with readily determinable fair values are measured and recorded at fair value on a recurring basis with changes in fair value. The Group values these equity securities at its quoted prices in stock market, and accordingly the Group classifies the valuation techniques that use these inputs as Level 1. The Group used measurement alternative for recording equity investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes. Based on ASU 2016-01, entities that elect the measurement alternative will report changes in the carrying value of the equity investments in current earnings. If measurement alternative is used, changes in the carrying value of the equity investment will be recognized whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer, and impairment charges will be recorded when any impairment indicators are noted and the fair value is lower than the carrying value. The Group classifies the valuation techniques on investments that use similar identifiable transaction prices as Level 2 of fair value measurements. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
NET INCOME_(LOSS) PER SHARE
NET INCOME/(LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Net income/(loss) per share attributable to ordinary shareholders | |
NET INCOME/(LOSS) PER SHARE | 25. NET INCOME/(LOSS) PER SHARE Basic and diluted net loss per share for each of the years/periods presented are calculated as follows: SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Numerator: Net income/(loss) attributable to YUNJI INC’s ordinary shareholders 131,966 (138,173 ) (165,129 ) Denominator: Denominator for basic earnings per ordinary share -Weighted average ordinary shares outstanding 2,139,963,573 2,088,319,721 1,971,108,505 Dilutive effect of share options 7,242,017 - - Denominator for diluted earnings per ordinary share 2,147,205,590 2,088,319,721 1,971,108,505 Net income/(loss) per share attributable to ordinary shareholders: -Basic 0.06 (0.07 ) (0.08 ) -Diluted 0.06 (0.07 ) (0.08 ) Basic net income/(loss) per share is computed using the weighted average number of ordinary shares outstanding during the period. Diluted net income/(loss) per share is computed using the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period. For the year ended December 31, 2019, assumed conversion of the Preferred Shares have not been reflected in the dilutive calculations pursuant to ASC 260, “Earnings Per Share,” due to the anti-dilutive effect. The effects of all outstanding share options and RSUs have also been excluded from the computation of diluted loss per share for the years ended December 31, 2022 and 2023 as their effects would be anti-dilutive. For the year ended December 31, 2021, the Company had potential ordinary shares, including non-vested restricted shares, and option granted which were included in the computation of diluted EPS in 2021. As the Group incurred losses for the years ended December 31, 2022 and 2023, these potential ordinary shares were anti-dilutive and excluded from the calculation of diluted net loss per share of the Company. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 26. RELATED PARTY BALANCES AND TRANSACTIONS The table below sets forth the major related parties and their relationships with the Group as of December 31, 2023: SCHEDULE OF MAJOR RELATED PARTIES AND THEIR RELATIONSHIPS WITH GROUP Name of related parties Relationship with the Group Small Ye Group Controlled by Mr. Xiao Shanglue, Founder and CEO of the Group Hangzhou Tianshi Technology Co., Ltd. (“Tianshi”)* An associate of the Group (incorporated in 2017) Guangdong Weixin Technology Co., Ltd. (“Weixin”) An associate of the Group (incorporated in 2018) Hangzhou Bixin Biotechnology Co., Ltd. (“Bixin”) An associate of the Group (incorporated in 2019) Shanxi Yunnong Logistic Management Co., Ltd. (“Yunnong”) An associate of the Group (incorporated in 2019) Zhejiang Jimi E-commerce Co., Ltd. (“Jimi”) An associate of the Group (incorporated in 2020) Zhejiang Jibi Technology Co., Ltd. (“Jibi”) An associate of the Group (incorporated in 2020) Hangzhou Xingsheng Brand Marketing Management Co., Ltd. (“Xingsheng”)* An associate of the Group (incorporated in 2020) Hangzhou Yuncheng Brand Management Co., Ltd. (“Yuncheng”)* An associate of the Group (incorporated in 2020) Hangzhou Huaji Brand Marketing Management Co., Ltd. (“Huaji”)* An associate of the Group (incorporated in 2020) * The investments in these associates were disposed by the Group in 2022 and 2023. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 26. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED) The Group entered into agreements with aforementioned equity method classified investees as related party transactions, including purchase of merchandise from them and marketplace services provided to them. Details of related party balances and transactions as of December 31, 2021, 2022 and 2023 are as follows: SCHEDULE OF RELATED PARTY BALANCES AND TRANSACTIONS Advance to related parties and amounts due from related parties 2022 2023 As of December 31, 2022 2023 RMB RMB Amounts due from related parties Jimi 67 1,134 Others 135 227 Total 202 1,361 Due from related parties, current 202 1,361 Amounts due to related parties 2022 2023 As of December 31, 2022 2023 RMB RMB Bixin 376 1,132 Jibi 618 809 Small Ye Group 691 691 Yunnong 728 351 Jimi 125 125 Weixin 5,382 89 Xingsheng 1,209 - Tianshi 884 - Others 595 338 Due to related parties, current 10,608 3,535 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 26. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED) The terms of the agreements the Group entered into with the related parties are comparable to the terms in arm’s-length transactions with third-party customers and vendors. SCHEDULE OF RELATED PARTY TRANSACTIONS Transactions with related parties Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Purchase of merchandise Jimi 17,519 7,572 16,353 Tianshi 11,256 2,722 2,793 Bixin 7,637 3,328 1,852 Yunnong 4,301 - 1,286 Weixin 14,508 32 - Yuncheng 13,147 - - Xingsheng 11,768 7,384 - Huaji 4,265 - - Others 7,714 472 312 purchases of merchandise from related parties 92,115 21,510 22,596 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 26. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED) Transactions with related parties (continued) Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Marketplace service provided to related parties Jimi 5,637 1,699 1,501 Bixin 2,322 1,234 1,075 Yuncheng 3,309 - - Others 815 172 80 Market place service provided to related parties 12,083 3,105 2,656 Other goods and services provided to related parties Bixin 3 172 Jimi 313 131 56 Tianshi - 114 45 Xingsheng - 554 - Yuncheng 208 - - Others 18 21 41 Other goods and services provided to related parties 539 823 314 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 27. COMMITMENTS AND CONTINGENCIES (a) Operating commitments As of December 31, 2023, the Company had outstanding operating commitments totaling RMB 580 (b) Capital commitments As of December 31, 2023, the Company had outstanding capital commitments totaling RMB 13,210 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 27. COMMITMENTS AND CONTINGENCIES (CONTINUED) (c) Contingencies In the ordinary course of business, the Group is from time to time involved in legal proceedings and litigations. As of December 31, 2022, the Group was not involved in any legal or administrative proceedings that the Group believes may have a material adverse impact on the Group’s business, balance sheets or results of operations and cash flows. As of December 31, 2023, the Group, as one of the five co-defendants, was involved in a legal proceeding that arose in the ordinary course of business (the “Case”). The plaintiff sought monetary damages jointly and severally from all co-defendants. As of the date of this consolidated financial statements release, the Case is still under the appeal trial process and subject to final judgment by the Guangzhou Intermediate People’s Court. The amount is approximately RMB 23.1 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 28. SUBSEQUENT EVENTS From December 31, 2023 to the date of publication of this report, there was no subsequent event which had a material impact on the Group. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Statutory Reserves And Restricted Net Assets | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 29. STATUTORY RESERVES AND RESTRICTED NET ASSETS Pursuant to laws applicable to entities incorporated in the PRC, the Group’s subsidiaries and consolidated VIE in the PRC must make appropriations from after-tax profit to non-distributable reserve funds. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires an annual appropriation of 10% of after tax profit (as determined under accounting principles generally accepted in the PRC at each year-end) until the accumulative amount of such reserve fund reaches 50% of a company’s registered capital, the other fund appropriations are at the subsidiaries’ discretion. These reserve funds can only be used for specific purposes of enterprise expansion and staff bonus and welfare and are not distributable as cash dividends 1,395 2,059 176 In addition, due to restrictions on the distribution of share capital from the Group’s subsidiaries and consolidated VIE in PRC and also as a result of these entities’ unreserved accumulated losses, total restrictions placed on the distribution of the Group’s PRC subsidiaries’ and consolidated VIEs’ net assets was RMB 639,397 54% The Company performed a test on the restricted net assets of consolidated subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. The subsidiaries did not pay any dividend to the Company for the periods presented. For the purpose of presenting parent only financial information, the Company records its investments in its subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “investments in subsidiaries and VIEs” and the loss of the subsidiaries is presented as “share of loss of subsidiaries”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with US GAAP have been condensed and omitted. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 30. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Balance sheets of the parent company SUMMARY OF CONDENSED BALANCE SHEETS PARENT COMPANY As of December 31, 2022 As of December 31, 2023 RMB RMB ASSETS Current assets: Cash and cash equivalents 65,363 64,070 Short-term investment 70,125 7,195 Amounts due from the group companies 161,124 195,917 Prepaid expenses and other current assets 1,516 1,059 Total current assets 298,128 268,241 Non-current assets: Long-term investments 39,817 39,500 Investment in subsidiaries and VIEs 1,020,937 883,681 Total non-current assets 1,060,754 923,181 Total assets 1,358,882 1,191,422 LIABILITIES AND EQUITY Current liabilities Other payables and accruals 3,852 1,206 Total liabilities 3,852 1,206 Shareholders’ equity Ordinary shares (US$ 0.000005 20,000,000,000 1,208,831,222 949,960,000 1,068,437,352 1,016,418,532 949,960,000 949,960,000 70 70 Ordinary shares (US$0.000005 par value 20,000,000,000 shares authorized as of December 31, 2022 and 2023; 1,208,831,222 Class A ordinary shares and 949,960,000 Class B ordinary shares issued as of December 31, 2022 and 2023; 1,068,437,352 and 1,016,418,532 Class A ordinary shares and 949,960,000 and 949,960,000 Class B ordinary shares outstanding as of December 31, 2022 and 2023, respectively) 70 70 Additional paid-in capital 7,332,098 7,327,581 Accumulated other comprehensive income 91,498 116,171 Less: Treasury stock ( 140,393,870 192,412,690 (98,709 ) (116,108 ) Accumulated deficit (5,969,927 ) (6,137,498 ) Total shareholders’ equity 1,355,030 1,190,216 Total liabilities and shareholders’ equity 1,358,882 1,191,422 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 30. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (CONTINUED) Statements of comprehensive income/(loss) of the parent company SUMMARY OF CONDENSED STATEMENTS OF COMPREHENSIVE OR LOSS OF THE PARENT COMPANY Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Operation expense Sales and marketing (2,052 ) - - General and administrative (17,632 ) (10,706 ) (8,557 ) Total operating expenses (19,684 ) (10,706 ) (8,557 ) Share of income/(loss) of subsidiaries and VIEs 167,444 (115,080 ) (151,117 ) Financial expense, net (15,883 ) (12,283 ) (518 ) Foreign exchange loss (466 ) (134 ) - Other non-operating income/(expense), net 555 30 (4,232 ) Income/(loss) before income tax expense 131,966 (138,173 ) (164,424 ) Equity in loss of affiliates, net of tax - - (705 ) Net income/(loss) 131,966 (138,173 ) (165,129 ) Net income/(loss) attributable to ordinary shareholders 131,966 (138,173 ) (165,129 ) Net income/(loss) 131,966 (138,173 ) (165,129 ) Other comprehensive income Foreign currency translation 35,433 134,143 24,673 Total comprehensive income/(loss) 167,399 (4,030 ) (140,456 ) Statements of cash flows of the parent company SUMMARY OF CONDENSED STATEMENTS OF CASH FLOWS OF THE PARENT COMPANY Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Net cash used in operating activities (23,226 ) (9,075 ) (8,557 ) Net cash generated from investing activities 29,919 154,552 31,720 Net cash generated from/(used in) financing activities 788 (94,752 ) (25,334 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,457 ) 5,960 878 Net increase/(decrease) in cash, cash equivalents and restricted cash 5,024 56,685 (1,293 ) Cash, cash equivalents and restricted cash at beginning of the year 3,654 8,678 65,363 Cash, cash equivalents and restricted cash at end of the year 8,678 65,363 64,070 |
PRINCIPAL ACCOUNTING POLICIES (
PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | 2.1 Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below. |
Basis of consolidation | 2.2 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs and VIEs’ subsidiaries for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at the meeting of the board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, bears the risks of, and enjoys the rewards normally associated with, ownership of the entity, and therefore the Company or its subsidiary is the primary beneficiary of the entity. All transactions and balances between the Company, its subsidiaries, VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. |
Non-controlling interests | 2.3 Non-controlling interests For the Company’s consolidated subsidiaries, VIEs and VIEs’ subsidiaries, non-controlling interests are recognized to reflect the portion of their equity that is not attributable, directly or indirectly, to the Company as the controlling shareholder. Non-controlling interests are classified as a separate line item in the equity section of the Group’s Consolidated Balance Sheets and have been separately disclosed in the Group’s Consolidated Statements of Comprehensive Income/(Loss) to distinguish the interests from that of the Company. |
Use of estimates | 2.4 Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to valuation allowance of deferred tax assets, share-based compensation, allowances for credit losses, valuation and recognition of refund payable to members, the estimated useful lives of assets, long-term investments and reserve for excess and obsolete inventories. Estimates are based on historical experiences and on various assumptions that the Group believes are reasonable under current circumstances. Actual results could differ from those estimates. |
Foreign currencies | 2.5 Foreign currencies The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Group’s holding entities incorporated in Cayman Islands and Hong Kong, China (“HK”) is the United States dollars (“US$”). The Group’s PRC subsidiaries, consolidated VIEs and VIEs’ subsidiaries and the other HK subsidiary determined their functional currency to be RMB. The determination of the respective functional currency is based on the criteria of ASC 830, Foreign Currency Matters and is based primarily on the currency the entity conducts its business in. Transactions denominated in other than the functional currencies are translated into the functional currency of the entity at the exchange rates quoted by authoritative banks prevailing on the transaction dates. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded in the Consolidated Statements of Comprehensive Income/(Loss). Total exchange loss were RMB 1,300 15,697 6,743 The financial statements of the Group are translated from the functional currency into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gain and loss are translated into RMB using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive (loss)/income as a component of shareholders’ equity. Total foreign currency translation adjustments to the Group’s other comprehensive (loss)/income were a loss of RMB 25,116 78,777 22,178 |
Convenience translation | 2.6 Convenience translation Translations of the Consolidated Balance Sheets, the Consolidated Statements of Comprehensive Income/(Loss) and the Consolidated Statements of Cash Flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB 7.0999 |
Fair value measurements | 2.7 Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.7 Fair value measurements (continued) Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach, (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Financial assets and liabilities of the Group mainly consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, amounts due from related parties, other receivables, equity securities with readily determinable fair values included in long-term investments, accounts payable, amounts due to related parties, accruals and other liabilities. As of December 31, 2022 and 2023, except for short-term investments and equity securities with readily determinable fair values included in long-term investments, the carrying values of cash and cash equivalents, restricted cash, trade receivables, amounts due from related parties, other receivables, trade payables, amounts due to related parties, accruals and other liabilities are approximated to their fair values due to the short-term maturity of these instruments. The Group reports short-term investments at fair value and discloses the fair value of these investments based on level 2 measurement, reports equity securities with readily determinable fair values included in long-term investments at fair value based on level 1 measurement, and for those investments without readily determinable fair values, the Group elects to record these investments at cost, less impairment, plus or minus subsequent adjustments for observable price changes (referred to as the measurement alternative). Under this measurement alternative, changes in the carrying value of the investments will be recognized in Consolidated Statements of Comprehensive Income/(Loss), whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Group classifies the valuation techniques on investments that use similar identifiable transaction prices as Level 2 of fair value measurements (Note 9). |
Cash and cash equivalents | 2.8 Cash and cash equivalents Cash includes currency on hand and deposits held by financial institutions that can be added to or withdrawn without limitation. Cash equivalents represent short-term, highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less. |
Restricted cash | 2.9 Restricted cash Cash that is restricted as to withdrawal or for use or pledged as security is reported separately on the face of the Consolidated Balance Sheets. The Group’s restricted cash mainly represents cash held in the Group’s own bank accounts, the use of which is restricted to collecting cash on behalf of the merchants for products sold on Yunji App and transferring these cash receipts to the merchants under the bank’s custody. |
Short-term investments | 2.10 Short-term investments Short-term investments are comprised of i) time deposits placed with banks with original maturities longer than three months but less than one year, ii) wealth management products issued by PRC banks or other financial institutions, which contains fixed or variable interest with original maturities within one year, and iii) debt securities for trading. The time deposits and wealth management products are generally not permitted to be redeemed early or are subject to penalties for redemption prior to maturities. These investments are stated at fair value. Changes in the fair value are reflected in financial income/(expense), net in the Consolidation Statements of Comprehensive Income/(Loss). |
Accounts receivable, net | 2.11 Accounts receivable, net Accounts receivables, net mainly represent amounts due from customers, including the funds extended by the Group to qualified customers, including the merchants, through its factoring arrangements (the “factoring receivables”) and are recorded net of allowance for credit losses. As of December 31, 2022 and 2023, the balance of the factoring receivables was RMB 80,484 29,147 |
Allowance for credit losses | 2.12 Allowance for credit losses Starting from January 1, 2020, the Group adopted ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. Upon adoption of the new standard on January 1, 2020, there was no material cumulative effect of the adoption. The Group’s accounts receivable, prepaid expenses and other current assets, amounts due from related parties and other non-current assets are within the scope of ASC Topic 326. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers, the related receivables and other receivables which include size, type of the services, the counterparty or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. This is assessed at each quarter based on the Group’s specific facts and circumstances. The key factors considered when determining the above allowances for credit losses include probability of default, loss given default and the non-performing loan ratio of commercial banks by industry, adjusted for forward-looking macroeconomic conditions. The following table summarized the details of the Company’s allowance for credit losses: SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES 2021 2022 2023 Balance at beginning of year 13,089 12,504 33,363 Allowance for credit losses 24,045 21,233 37,098 Write-offs (24,630 ) (374 ) (72 ) Balance at end of year 12,504 33,363 70,389 |
Inventories, net | 2.13 Inventories, net Inventories, consisting of products available for sale, are stated at the lower of cost and net realizable value. Cost of inventory is determined using the weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged goods, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. Write downs of RMB 25,696 4,792 9,270 |
Property, equipment and software, net | 2.14 Property, equipment and software, net Property, equipment and software are stated at cost less accumulated depreciation. Property, equipment and software are depreciated at rates sufficient to write off their costs less impairment and residual value, if any, over the estimated useful lives on a straight-line basis. The estimated useful lives are as follow: SCHEDULE OF ESTIMATED USEFUL LIVES Category Estimated useful lives Building 20 40 Leasehold improvement Shorter of the term of the lease or the estimated useful lives of the assets Electronic equipment 3 Furniture 3 Software 3 years Vehicles 3 Repairs and maintenance costs are charged to expenses as incurred, whereas the costs of renewals and betterment that extend the useful lives of property, equipment and software are capitalized as additions to the related assets. The Group recognized the gain or loss on the disposal of property, equipment and software in the Consolidated Statements of Comprehensive Income/(Loss). Construction in progress represents direct costs that are related to the construction of property, equipment and software and incurred in connection with bringing the assets to their intended use. Construction in progress is transferred to specific property, equipment and software items and the depreciation of these assets commences when the assets are ready for their intended use. |
Long-term investments | 2.15 Long-term investments The Group’s investments include equity method investments, equity securities with readily determinable fair values and equity securities accounted for under measurement alternative. Investments in entities in which the Company does not control, but can exercise significant influence, are accounted for using the equity method of accounting in accordance with ASC topic 323, Investments—Equity Method and Joint Ventures. Under the equity method, the Company initially records its investments at cost. The Company subsequently adjusts the carrying amount of the investments to recognize the Company’s proportionate share of each equity investee’s net income or loss into earnings as well as distributions received after the date of investment. Under the equity method, the Group’s share of the post-acquisition profits or losses of the equity investees are recorded in equity in income of affiliates, net of tax in the Consolidated Statements of Comprehensive Income/(Loss). The excess of the carrying amount of the investment over the underlying equity in net assets of the equity investee, if any, represents goodwill and intangible assets acquired. When the Group’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.15 Long-term investments (continued) Equity securities with readily determinable fair values are measured and recorded at fair value on a recurring basis with changes in fair value, whether realized or unrealized, recorded in financial income/(expense), net through the Consolidated Statements of Comprehensive Income/(Loss). For equity investments which the Company cannot exercise significant influence and does not have a readily determinable fair value, the Company has elected to apply the measurement alternative and recorded these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes, in accordance with ASC topic 321, Investments– Equity Securities. Under this measurement alternative, changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. |
Impairment of long-lived assets | 2.16 Impairment of long-lived assets Long-lived assets are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Group recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. |
Revenue recognition | 2.17 Revenue recognition The Group adopted ASC Topic 606, “Revenue from Contracts with Customers”, for all periods presented. Consistent with the criteria of Topic 606, the Group recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Group expects to receive in exchange for those goods or services. To achieve that core principle, the Group applies the five steps defined under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. Revenue arrangements with multiple performance obligations are divided into separate distinct goods or services. The Group allocates the transaction price to each performance obligation based on the relative standalone selling price of the goods or services provided. Revenue is recognized upon the transfer of control of promised goods or services to a customer. Revenue is recorded net of value-added tax. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.17 Revenue recognition (continued) Revenue recognition policies for each type of revenue steam are as follows: Sales of merchandise The Group primarily sells merchandise through its Yunji App. The Group presents the revenue generated from its sales of merchandise on a gross basis as the Group has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. In making this determination, the Group also assesses whether it is primarily obligated in these transactions, is subject to inventory risk, has latitude in establishing prices, or has met several but not all of these indicators. The cash collected from the sales of merchandise is initially recorded in deferred revenue in the Consolidated Balance Sheets and subsequently recognized as revenue when the receipt of merchandise is confirmed by the customers, which is the point that the control of the merchandise is transferred to the customer. For products sold through independent distributors (the “distribution sales”), control is transferred upon acceptance, based on the contract terms. The revenue is recorded net of value-added tax, discounts, coupons, incentives and return allowances. Return allowances are estimated based on historical experiences and updated at the end of each reporting period. Marketplace In 2019, the Group launched its marketplace business model, under which the Group operates its e-commerce platform, Yunji App, as a marketplace for third party merchants to sell their merchandise to the Yunji App users. When the transactions are completed on Yunji App, the Group charges merchants commissions at their respective agreed percentage of the amount of merchandise sold by merchants. The Group acts as an agent in these transactions and does not control the underlying merchandise provided by merchants before they are transferred to users, as the Group is not responsible for fulfilling the promise to provide the merchandise to users and has no inventory risk. In addition, the Group has no discretion in establishing prices of the merchandise provided by merchants. Revenues are recognized on a net basis to the extent of the commissions the Group earns at the point of users’ acceptance of merchandise. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.17 Revenue recognition (continued) Remaining performance obligations The remaining performance obligations associated with the Group’s sale of merchandise represents the cash collected upfront from the customers for their purchase of merchandise on Yunji App, but the underlying merchandise has not yet been received by the customers, which is included in the presentation of deferred revenue (Note 12). As of December 31, 2022 and 2023, the remaining performance obligation for sales of merchandise were RMB 18,106 6,063 The remaining performance obligations associated with the Group’s marketplace revenue represents the portion of commissions included in the payment collected from the users for their purchase of merchandise on Yunji App on behalf of the merchants, but the underlying merchandise has not yet been received by the users, which is included in the presentation of deferred revenue (Note 12). As of December 31, 2022 and 2023, the remaining performance obligation for marketplace revenue was RMB 2,596 3,144 Other businesses The Group offers loans to qualified customers, including the merchants, and charges an interest based on the principal through factoring arrangements. The Group extends loans to merchants for their expected orders in addition to the loans to the same merchants who factored their accounts receivable generated from their transactions completed on Yunji App with recourse. The Group also extends loans to unrelated customers who factored their accounts receivable derived from their own business with recourse. The Group records factoring receivables, which is included in accounts receivable, when the cash is advanced to its customers (Note 2.11). The interests are recognized over the term of loans, normally one year or less. From cash flow perspective, when the Group has legal rights to net settle the factoring receivables from merchants with its payable to merchants, the Group settles such factoring receivables with the payables to the same merchant respectively, as per agreement between the two parties. The Group also provides technical services, advertising services and membership services to customers. The service revenues mainly represent the service fees from third parties that are recognized over the service period. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) |
Users incentive programs | 2.18 Users incentive programs The Group provides incentives to those referring members by paying a cash refund upon a successful merchandise referral (“Referral Incentives”); and those members for their self-purchase (“Self-purchase Incentives”). These unpaid balances recorded in incentive payables to members are maintained collectively in the members’ Yunji App accounts and can be withdraw in cash upon the members’ requests. For years ended December 31, 2021, 2022 and 2023, the long-aged balances of incentive payables to members of nil 48,709 69,545 The Group grants certain units of Yunbi and other coupons (collectively referred to as coupons), from time to time, to its customers at its discretion in different situations. Yunbi are not redeemable for cash and can be used as a coupon for the customer’s future purchase on the Yunji App. The coupons granted are not concurrent with a revenue transaction, thus not accounted for when they are granted and are recognized as a reduction of revenue when they are applied in future sales. The Group at its own discretion issues coupons in various forms to users without any concurrent transactions in place or any substantive action needed from the recipient. These coupons can be used in purchase of goods in a broad range of merchants as an immediate discount of their next purchase, some of which can only be used when the purchase amount exceeds pre-defined threshold. The Group settles with the merchants in cash for the coupons used by the users. As the users are required to make purchases of the merchants’ merchandises to redeem the coupons, the Group recognizes the amounts of redeemed coupons as sales and marketing expenses when the purchases are made. |
Cost of revenues | 2.19 Cost of revenues Cost of revenues consists of purchase price of merchandise, inbound shipping charges, write-downs of inventory and member training costs. Inbound shipping charges to receive merchandise from suppliers are included in the inventories and recognized as cost of revenues upon sale of the merchandise to the customers. |
Fulfilment | 2.20 Fulfilment Fulfilment expenses represent packaging material costs and those costs incurred in outbound shipping, operating and staffing the Group’s fulfilment and customer service centers, including costs attributable to buying, receiving, inspecting and warehousing inventories, picking, packaging and preparing customer orders for shipment, processing payment and related transaction costs and responding to inquiries from customers, depreciation expenses, payroll costs including share-based compensation expenses, and other daily expenses which are related to the purchasing functions. Fulfilment costs also contain third party payment transaction fees, such as bank card processing and debit card processing fees. |
Sales and marketing | 2.21 Sales and marketing Sales and marketing expenses comprise primarily of member management fees, promotion expenses, marketplace coupons, payroll costs including share-based compensation expenses, depreciation expenses and other daily expenses which are related to the sales and marketing functions. The Group engages third party vendors to provide member management services, which are ultimately performed by service managers who enter into employment contract with the third party vendors. Certain of the Group’s members (customers) have been engaged by third party vendors to serve as service managers. The Group has concluded that the member management services provided by the service managers, including those who are also members, are for distinct services at fair value, and records the member management fees paid to the third party vendors as sales and marketing expenses. |
Technology and content | 2.22 Technology and content Technology and content expenses are expensed as incurred and primarily consist of payroll costs including share-based compensation expenses, rental expenses, costs associated with the computing, storage and telecommunications infrastructure for internal use that support the Group’s system and Yunji App services and other expenses which are related to the technology and content functions, which are responsible for technology research and development and content editing in the Group. The Group accounts for internal use software development costs in accordance with guidance on intangible assets and internal use software. This requires capitalization of qualifying costs incurred during the software’s application development stage and to expense costs as they are incurred during the preliminary project and post implementation/operation stages. Costs capitalized for developing such software application were not material for the periods presented. |
General and administrative | 2.23 General and administrative General and administrative expenses consist of payroll costs including share-based compensation expenses and other expenses which are related to the general corporate functions, including accounting, finance, tax, legal and human relations, costs associated with use by these functions of facilities and equipment, such as depreciation expenses, rental and other general corporate related expenses. |
Share-based compensation | 2.24 Share-based compensation The Company grants restricted share units (“RSUs”) and share options of the Company to eligible employees and accounts for these share-based awards in accordance with ASC 718 Compensation — Stock Compensation. Employees’ share-based awards are measured at the grant date fair value of the awards and recognized as expenses a) immediately at grant date if no vesting conditions are required, or b) using a straight-line method over the requisite service period, which is the vesting period. For nonemployees’ share-based awards, the Group adopted ASU 2018-07 in 2019, according to ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, it clarifies that equity-classified nonemployee share-based payment awards are measured at the grant date. The definition of the term grant date is amended to generally state the date at which a grantor and a grantee reach a mutual understanding of the key terms and conditions of a share-based payment award. Nonemployees’ are measured at the grant date fair value of the awards and recognized as expenses using a straight-line method over the requisite service period, which is the vesting period. All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Before the Group’s initial public offering, the fair value of RSUs were assessed using the income approach/discounted cash flow method, with a discount for lack of marketability given that the shares underlying the awards were not publicly traded at the time of grant. This assessment required complex and subjective judgments regarding the Company’s projected financial and operating results, its unique business risks, the liquidity of its ordinary shares and its operating history and prospects at the time the grants were made. After the Group’s initial public offering, the fair value of the RSUs is determined based on the quoted market price of Yunji’s ordinary shares on the grant date. In addition, the binomial option-pricing model is used to measure the value of share options. The determination of the fair value is affected by the fair value of the ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee and nonemployee share option exercise behavior, risk-free interest rates and expected dividend yield. Binomial option-pricing model incorporates the assumptions about grantees’ future exercise patterns. The fair value of these awards was determined by management with the assistance from an independent valuation firm using management’s estimates and assumptions. The assumptions used in share-based compensation expense recognition represent management’s best estimates, but these estimates involve inherent uncertainties and application of management judgment. If factors change or different assumptions are used, the share-based compensation expenses could be materially different for any period. Moreover, the estimates of fair value of the awards are not intended to predict actual future events or the value that ultimately will be realized by grantees who receive share-based awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company for accounting purposes. In accordance with ASU 2016-09, the Group made an entity-wide accounting policy election to account for forfeitures when they occur. |
Employee benefits | 2.25 Employee benefits Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to the employees. Chinese labor regulations require that the PRC subsidiaries and VIE of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were RMB 273,773 228,685 163,324 |
Operating leases | 2.26 Operating leases The Company applied ASC 842, Leases, on January 1, 2019 on modified retrospective basis and has elected not to recast comparative periods. The Company determines if an arrangement is a lease at inception. Operating leases are primarily for office and warehouse and are included in operating lease right of use assets, net, operating lease liabilities, current and operating lease liabilities, non-current on its Consolidated Balance Sheets. Operating lease right of use assets represent the Group’s right to use an underlying asset for the lease term and Operating lease liabilities represent obligation to make lease payment arising from the lease. The operating lease right of use assets and liabilities are recognized at lease commencement date based on the present value of lease payment over the lease term. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. The Operating lease right of use assets also includes any lease payments made and excludes lease incentives. The Group’s lease term may include options to extend or terminate the lease. Renewal options are considered within the Operating lease right of use assets and liabilities when it is reasonably certain that the Group will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. For operating lease with a term of one year or less, the Group has elected to not recognize a lease liability or lease right of use asset on its Consolidated Balance Sheets. Instead, it recognizes the lease payment as expense on a straight-line basis over the lease term. Short-term lease costs are immaterial to its Consolidated Statements of Comprehensive Income/(Loss). The Group has operating lease agreements with insignificant non-lease components and have elected the practical expedient to combine and account for lease and non-lease components as single lease component. |
Government grant | 2.27 Government grant Government grants are recognized as Other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the Consolidated Statements of Comprehensive Income/(Loss) upon receipts and all conditions attached to the grants are fulfilled. |
Income tax | 2.28 Income tax Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Group accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Tax. Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the financial statements and their respective tax basis, and operating loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the Consolidated Statements of Comprehensive Income/(Loss) in the period of change. Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not that amount of the deferred tax assets will not be realized. YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 2. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) 2.28 Income tax (continued) The Group recognizes in its consolidated financial statements the benefit of a tax position if the tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. The Group estimates its liability for unrecognized tax benefits which are periodically assessed and may be affected by changing interpretations of laws, rulings by tax authorities, changes and/or developments with respect to tax audits, and expiration of the statute of limitations. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in some cases, appeal or litigation process. The actual benefits ultimately realized may differ from the Group’s estimates. As each audit is concluded, adjustments, if any, are recorded in the Group’s consolidated financial statements in the period in which the audit is concluded. Additionally, in future periods, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recognized in the period in which the changes occur. As of December 31, 2022 and 2023, the Group did not have any significant unrecognized uncertain tax positions. |
Treasury stocks | 2.29 Treasury stocks The Company accounts for treasury stocks using the cost method. Under this method, the cost incurred to purchase the shares is recorded in the treasury stocks account on the Consolidated Balance Sheets. |
Statutory reserves | 2.30 Statutory reserves The Company’s subsidiaries, consolidated VIEs and VIEs’ subsidiaries established in the PRC are required to make appropriations to certain non-distributable reserve funds. In accordance with the laws applicable to the Foreign Investment Enterprises established in the PRC, the Group’s subsidiaries registered as wholly-owned foreign enterprise have to make appropriations from their after-tax profits (as determined under generally accepted accounting principles in the PRC (“PRC GAAP”)) to reserve funds including general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. In addition, in accordance with the PRC Company Laws, the Group’s consolidated VIEs and VIEs’ subsidiaries, registered as Chinese domestic companies, must make appropriations from their after-tax profits as determined under the PRC GAAP to non-distributable reserve funds including statutory surplus fund and discretionary surplus fund on an annual basis. The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. The use of the statutory surplus fund and discretionary surplus fund are restricted to the offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of employees. None of these reserves are allowed to be transferred to the company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. For the years ended December 31, 2021, 2022 and 2023, profit appropriation to statutory surplus fund for the Group’s entities incorporated in the PRC was approximately RMB 1,395 2,059 176 |
Comprehensive loss | 2.31 Comprehensive loss Comprehensive loss is defined as the changes in equity of the Group during a period from transactions and other events and circumstances excluding transactions resulting from investments from shareholders and distributions to shareholders. Comprehensive loss for the periods presented includes net loss and foreign currency translation adjustments. |
Net income/(loss) per share | 2.32 Net income/(loss) per share Basic net income/(loss) per share is computed by dividing net income/(loss) attributable to holders of ordinary shares, considering the accretions to redemption value of the preferred shares, by the weighted average number of ordinary shares outstanding during the period, if applicable. Diluted net income/(loss) per share is calculated by dividing net income/(loss) attributable to ordinary shareholders, as adjusted for the accretion and deemed dividend and allocation of net income related to the preferred shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of shares issuable upon the conversion of the preferred shares using the if-converted method, restricted share units and ordinary shares issuable upon the exercise of outstanding share options using the treasury stock method. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive. |
Segment reporting | 2.33 Segment reporting ASC 280, Segment Reporting, establishes standards for companies to report in their financial statements information about operating segments, products, services, geographic areas, and major customers. Based on the criteria established by ASC 280, the Group’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. As a whole and hence, the Group has only one reportable segment. The Group does not distinguish between markets or segments for the purpose of internal reporting. As the Group’s long-lived assets are substantially located in the PRC and substantially all the Group’s revenue are derived from within the PRC, no geographical segments are presented. |
Recent accounting pronouncements | 2.34 Recent accounting pronouncements In November 2023, the FASB issued ASU 2023-07 “Segment Reporting: Improvements to Reportable Segment Disclosures”. This guidance expands public entities’ segment disclosures primarily by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments are required to be applied retrospectively to all prior periods presented in an entity’s financial statements. The Company currently does not expect the adoption of this standard will have a material impact on the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires that all public entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) disclose the year-to-date amount of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. |
PRINCIPAL ACTIVITIES AND ORGA_2
PRINCIPAL ACTIVITIES AND ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF PRINCIPAL SUBSIDIARIES | As of December 31, 2023, the Company’s principal subsidiaries are as follows: SCHEDULE OF PRINCIPAL SUBSIDIARIES Subsidiaries Place of incorporation Date of incorporation or acquisition Percentage of direct or indirect Principal activities Yunji Holding Limited Hong Kong December 20, 2017 100 Investment holding Zhejiang Youji Supply Chain Management Co., Ltd. Hangzhou November 30, 2016 100 Procurement Zhejiang Jiyuan Network Technology Co., Ltd. Hangzhou August 14, 2018 100 Sales of merchandise Hangzhou Jichuang Network Technology Co., Ltd. Hangzhou May 23, 2016 100 Investment holding Yunji Hongkong Limited Hong Kong August 25, 2015 100 Sales of merchandise Hangzhou Yunchuang Sharing Network Technology Co., Ltd. Hangzhou June 13, 2018 100 Investment holding Desking technology (HK) Co., Limited Hong Kong July 26, 2016 100 Investment holding and Financing solution Jironghuishang Commercial Factoring (Tianjin) Co., Ltd. Tianjin October 16, 2018 100 Financing solution Zhejiang Yunxuan Supply Chain Management Co., Ltd. Hangzhou August 9, 2018 100 Procurement Yunji Sharing Technology Co., Ltd. (“Yunji Sharing”) Hangzhou March 5, 2018 100 Investment holding |
SCHEDULE OF VARIABLE INTEREST ENTITIES | As of December 31, 2023, the Company’s principal consolidated VIEs and VIE’s subsidiaries are as follows: SCHEDULE OF VARIABLE INTEREST ENTITIES Place of incorporation Date of incorporation or acquisition Percentage of direct or indirect Principal activities VIEs and VIE subsidiaries Zhejiang Yunji Preferred E-Commerce Co., Ltd. Hangzhou June 13, 2018 100 Investment holding Zhejiang Jishang Preferred E-Commerce Co., Ltd. Hangzhou April 22, 2016 100 Procurement Zhejiang Jixiang E-commerce Co., Ltd. (“Jixiang”) Hangzhou August 14, 2018 100 E-Commerce Ningbo Meishan Bonded Port Area Jichuang Taihong Venture Capital Partnership (LP) (“Jichuang Taihong”) Ningbo January 15, 2019 99.75 Investment holding Hangzhou Jiweixiang Food Co., Ltd. Hangzhou May 8, 2020 100 Distribution sales |
SCHEDULE OF RISKS IN RELATION IN BALANCE SHEET | SCHEDULE OF RISKS IN RELATION IN BALANCE SHEET As of December 31, 2022 2023 RMB RMB Cash and cash equivalents 114,265 20,176 Restricted cash 42,109 27,169 Accounts receivable, net 23,683 60,608 Advance to suppliers 5,434 1,774 Inventories, net 2,635 2,491 Amounts due from the Group companies (1) 719,655 530,998 Amounts due from related parties 46 407 Prepaid expense and other current assets 81,307 58,441 Property, equipment and software, net 4,546 2,430 Long-term investments 214,450 206,152 Other non-current assets 6,417 5,485 Total assets 1,214,547 916,131 Accounts payable 71,007 48,198 Deferred revenue 16,398 6,836 Incentive payables to members 207,331 124,889 Members management fee payable 4,997 3,066 Other payable and accrued liabilities 91,469 65,587 Amounts due to the Group companies (2) 900,852 727,459 Amounts due to related parties 8,083 2,303 Total liabilities (3) 1,300,137 978,338 (1) Amounts due from the Group companies primarily consisted of inter-company receivables for the sales of goods and the rendering of services made by the VIEs and their subsidiaries on behalf of other Group companies. (2) Amounts due to the Group companies primarily consisted of inter-company payables for the purchase of goods and services made by other Group companies on behalf of the VIEs and their subsidiaries. (3) Amounts of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiary is RMB 399,285 250,879 |
SCHEDULE OF RISKS IN RELATION IN FINANCIAL STATEMENTS | SCHEDULE OF RISKS IN RELATION IN FINANCIAL STATEMENTS Year Ended December 31, 2021 2022 2023 RMB RMB RMB Revenues: Third-party revenues 513,299 349,259 316,382 Intra-Group revenues 501,168 229,562 91,657 Total revenues 1,014,467 578,821 408,039 Operating cost and expenses: Third-party operating cost and expenses (906,559 ) (478,245 ) (272,602 ) Intra-Group operating cost and expenses (118,456 ) (178,573 ) (142,717 ) Total operating cost and expenses (1,025,015 ) (656,818 ) (415,319 ) Net income/(loss) 164,950 (75,329 ) (7,276 ) Net cash provided by transactions with external parties 539,673 651,432 215,227 Net cash used in transactions with intra-Group entities (497,190 ) (698,690 ) (453,916 ) Net cash generated by/(used in) operating activities 42,483 (47,258 ) (238,689 ) Net cash provided by transactions with external parties 8,102 5,216 9,028 Net cash (used in)/generated by transactions with intra-Group entities (180,000 ) 60,000 118,831 Net cash (used in)/generated by investing activities (171,898 ) 65,216 127,859 Net cash (used in)/provided by transactions with external parties (1,198 ) 197 - Net cash provided by transactions with intra-Group entities - 4,250 1,500 Net cash (used in)/generated by financing activities (1,198 ) 4,447 1,500 Effect of exchange rate changes on cash, cash equivalents (383 ) 1,127 301 Net (decrease)/increase in cash, cash equivalents and restricted cash (130,996 ) 23,532 (109,029 ) Cash, cash equivalents and restricted cash at beginning of year 263,838 132,842 156,374 Cash, cash equivalents and restricted cash at end of year 132,842 156,374 47,345 |
PRINCIPAL ACCOUNTING POLICIES_2
PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES | The following table summarized the details of the Company’s allowance for credit losses: SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES 2021 2022 2023 Balance at beginning of year 13,089 12,504 33,363 Allowance for credit losses 24,045 21,233 37,098 Write-offs (24,630 ) (374 ) (72 ) Balance at end of year 12,504 33,363 70,389 |
SCHEDULE OF ESTIMATED USEFUL LIVES | SCHEDULE OF ESTIMATED USEFUL LIVES Category Estimated useful lives Building 20 40 Leasehold improvement Shorter of the term of the lease or the estimated useful lives of the assets Electronic equipment 3 Furniture 3 Software 3 years Vehicles 3 |
CONCENTRATION AND RISKS (Tables
CONCENTRATION AND RISKS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
SUMMARY OF CUSTOMERS CONTRIBUTION | Customers contributed more than 10% of total revenues are as below: SUMMARY OF CUSTOMERS CONTRIBUTION Year ended December 31, 2021 2022 2023 RMB RMB RMB Customer A — 17 % 24 % |
SHORT-TERM INVESTMENT (Tables)
SHORT-TERM INVESTMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Short-term Investment | |
SCHEDULE OF SHORT TERM INVESTMENTS | SCHEDULE OF SHORT TERM INVESTMENTS As of December 31, 2022 2023 RMB RMB Debt security for trading (1) - 7,195 Time deposits 142,357 - Wealth management products (2) 69,646 - Total short-term investment 212,003 7,195 (1) In October 2023, the Group acquired a debt security at a cash consideration of US$ 1 7.16 31 (2) The Group’s wealth management products mainly consisted of financial products issued by commercial banks in China with a variable interest rate indexed to the performance of underlying assets and a maturity date within one year when purchased or revolving terms. For the years ended December 31, 2021, 2022 and 2023, the weighted average return of the wealth management products were 5.2 2.04 3.91 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | SCHEDULE OF ACCOUNTS RECEIVABLE 2022 2023 As of December 31, 2022 2023 RMB RMB Receivables from the distribution sales 23,018 62,576 Factoring receivables 80,484 29,147 Receivables from merchants under marketplace business 4,590 6,613 Receivables from sales channels on other platforms 1,699 894 Receivables from other revenue 1,082 241 Less: allowance for credit losses (16,762 ) (35,159 ) Total accounts receivable, net 94,111 64,312 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS | Prepaid expenses and other current assets consist of the following: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS 2022 2023 As of December 31, 2022 2023 RMB RMB Loan receivables (1) -Secured (1) 139,292 49,697 -Unsecured (1) 130,022 31,200 VAT-input deductible 25,708 25,328 Receivables from third-party payment settlement platform (2) 34,179 17,745 Deposits 13,917 5,489 Receivables from disposal of a subsidiary (3) 1,964 2,927 Others 31,493 14,878 Less: allowance for credit losses (14,510 ) (13,017 ) Total prepaid expenses and other current assets, net 362,065 134,247 (1) Loan receivables represent the principal and interest to be collected on loans provided by the Group to third-party companies. As of December 31, 2023, there were two unsecured loans provided to two companies. One loan with principal amount of RMB 31,200 8 10,000 60,000 4.35 50,000 As of December 31, 2023, the secured loan receivable balance with principal of US$ 15 106,241 7 49,579 8 56,662 118 As of December 31, 2022, the secured and unsecured loans include six loans to six third-party companies. Four out of these six loans with aggregated principal amount of US$ 20 139,292 78,000 50,000 , four-year term starting from December 2019, and with a lump sum interest rate of 20 % would be due for repayment within one year. The remaining loan was the one to a customer with total principal amount of RMB 1,000 . (2) Receivables from third-party payment settlement platform represent amount due from the third-party on-line payment service providers in relation to their processing of payments to the Group. (3) In the fourth quarter of 2020, the Group disposed of a subsidiary, Wuhan Yunteng Logistics Co., Ltd. (“Wuhan Yunteng”), to a third party for a total cash consideration of RMB 26,676 1 2,224 11,133 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY, NET | SCHEDULE OF INVENTORY, NET 2022 2023 As of December 31, 2022 2023 RMB RMB Merchandise and packing materials 60,043 50,061 Less: inventory write-downs (5,392 ) (7,345 ) Total inventories, net 54,651 42,716 |
PROPERTY, EQUIPMENT AND SOFTW_2
PROPERTY, EQUIPMENT AND SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY EQUIPMENT AND SOFTWARE | Property, equipment and software, net, consist of the following: SCHEDULE OF PROPERTY EQUIPMENT AND SOFTWARE 2022 2023 As of December 31, 2022 2023 RMB RMB Buildings (1) - 171,582 Leasehold improvement 32,340 29,681 Electronic equipment 16,471 15,489 Software 7,092 6,728 Furniture 3,728 5,687 Construction in progress (1) 163,696 1,418 Vehicles 690 631 Subtotal 224,017 231,216 Less: accumulated depreciation (2) (55,089 ) (55,765 ) Total property, equipment and software, net 168,928 175,451 (1) In June 2021, the Group entered into a purchase agreement with a third-party company to purchase an office building. The Group paid 50 % of the total amount with consideration of RMB 81,125 in 2021 and paid the remaining 50 % in amount of RMB 80,732 in 2022. In June 2022, the new office building has been delivered by the third-party company to the Group and all prepayment except for the value added tax of the office building were recorded as construction in progress upon delivery in 2022. In April 2023, the office building has been put into use with estimated useful life of 40 (2) Depreciation expenses were RMB 15,985 7,718 6,545 No |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Schedule Of Long-term Investments | |
SCHEDULE OF LONG-TERM INVESTMENTS | The Group’s long-term investments consist of the following: SCHEDULE OF LONG-TERM INVESTMENTS 2022 2023 As of December 31, 2022 2023 RMB RMB Equity method investments (a) 72,111 105,528 Equity method investments 72,111 105,528 Equity securities accounted for under measurement alternative (b) 227,371 220,981 Equity securities accounted for under measurement alternative 227,371 220,981 Equity securities with readily determinable fair values (c) 114,843 37,650 Equity securities with readily determinable fair values 114,843 37,650 Total long-term investments 414,325 364,159 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Non-current Assets | |
SCHEDULE OF OTHER NON CURRENT ASSETS | Other non-current assets consist of the following: SCHEDULE OF OTHER NON CURRENT ASSETS 2022 2023 As of December 31, 2022 2023 RMB RMB Long-term loan receivables (Note 6) - Unsecured - 60,000 - Secured - 56,662 Long-term receivables from disposal of a subsidiary (Note 6) 13,137 11,133 Prepayment of commercial properties (1) 78,000 78,000 Others 7,368 5,485 Less: allowance for doubtful accounts (2,091 ) (22,213 ) Total other non-current assets 96,414 189,067 (1) In 2020, the Group purchased commercial properties from a third party and paid the full amount in advance with consideration of US$ 11.25 78,000 |
ACCOUNTS PAYABLE (Tables)
ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCOUNTS PAYABLE | SCHEDULE OF ACCOUNTS PAYABLE 2022 2023 As of December 31, 2022 2023 RMB RMB Merchandise purchase payables 87,489 61,004 Warehouse and logistic fees payables 1,311 3,074 Payable to merchants (1) 50,103 32,704 Total accounts payable 138,903 96,782 (1) Payable to merchants represents the unpaid balances to the merchants of cash collected by the Group on behalf of the merchants for products sold on Yunji App when the Group is viewed as the agent in the sales arrangement. |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Revenue | |
SCHEDULE OF DEFERRED REVENUE | SCHEDULE OF DEFERRED REVENUE 2022 2023 As of December 31, 2022 2023 RMB RMB Deferred merchandise revenue 18,106 6,063 Deferred marketplace revenue 2,596 3,144 Deferred other revenue 1,046 205 Total deferred revenue 21,748 9,412 |
INCENTIVE PAYABLES TO MEMBERS (
INCENTIVE PAYABLES TO MEMBERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Incentive Payables To Members | |
SCHEDULE OF INCENTIVE PAYABLES TO MEMBERS | SCHEDULE OF INCENTIVE PAYABLES TO MEMBERS 2022 2023 As of December 31, 2022 2023 RMB RMB Incentive payables to members 207,331 124,889 |
MEMBER MANAGEMENT FEES PAYABLE
MEMBER MANAGEMENT FEES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Member Management Fees Payable | |
SCHEDULE OF MEMBERS MANAGEMENT FEES PAYABLE | SCHEDULE OF MEMBERS MANAGEMENT FEES PAYABLE 2022 2023 As of December 31, 2022 2023 RMB RMB Member management fees payable 11,087 4,373 |
OPERATING LEASE (Tables)
OPERATING LEASE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Lease | |
SCHEDULE OF OPERATING LEASES SUPPLEMENTAL CASH FLOW INFORMATION | Supplemental cash flow information related to leases were as follows: SCHEDULE OF OPERATING LEASES SUPPLEMENTAL CASH FLOW INFORMATION RMB RMB Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB Cash paid for amounts included in the measurement of lease liabilities 4,184 5,332 Right-of-use assets obtained in exchange for operating lease liabilities - 18,106 |
SCHEDULE OF OPERATING LEASES SUPPLEMENTAL BALANCE SHEET INFORMATION | Supplemental consolidated balance sheet information related to leases were as follows: SCHEDULE OF OPERATING LEASES SUPPLEMENTAL BALANCE SHEET INFORMATION 2022 2023 As of December 31, 2022 2023 RMB RMB Right-of-use assets 231 16,507 Operating lease liabilities - current 1,162 3,376 Operating lease liabilities - non-current 145 11,122 Total lease liabilities 1,307 14,498 Weighted average remaining lease term 1.18 4.50 Weighted average discount rate 4.75 % 4.75 % |
SCHEDULE OF MATURITIES OF LEASE LIABILITIES | Maturities of lease liabilities are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES As of December 31, 2023 RMB 2024 4,018 2025 4,018 2026 4,018 2027 4,018 Total operating lease payments 16,072 Less: imputed interest (1,574 ) Total operating lease 14,498 |
OTHER PAYABLE AND ACCRUED LIA_2
OTHER PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF OTHER PAYABLE AND ACCRUED LIABILITIES | SCHEDULE OF OTHER PAYABLE AND ACCRUED LIABILITIES As of December 31, 2022 2023 RMB RMB Merchants deposits (1) 42,452 31,369 Supplier deposits (2) 32,997 25,538 Salaries and welfare payable 28,735 18,141 Taxes payable 15,531 14,555 Accrued marketing and other operational expenses 12,682 7,336 Accrued professional fees 10,165 6,782 Others 2,965 5,479 Total other payable and accrued liabilities 145,527 109,200 (1) The deposit obtained from the merchants is to ensure implementation of Yunji App’s platform policy and good product quality to be sold by the merchants on Yunji App under the Group’s marketplace business model. The deposit can be withdrawn immediately after the merchants terminate its online shop on Yunji App. (2) The deposit obtained from the suppliers is to ensure inventory level ready for the Group to purchase and good product quality under the Group’s sales of merchandise business model. |
OTHER OPERATING INCOME (Tables)
OTHER OPERATING INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
SCHEDULE OF OTHER OPERATING INCOME | SCHEDULE OF OTHER OPERATING INCOME Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB VAT-in super deduction and other tax returns (1) 2,323 2,369 518 Government grants (2) 48,180 15,110 13,123 Others 3,913 4,120 1,257 Total other operating income 54,416 21,599 14,898 (1) From 2019, in accordance with “the Announcement on Relevant Policies for Deepening the Value-added Tax Reform” and relevant government policies announced by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs of China, one China VIE of the Company, as a consumer service company, is allowed to enjoy additional 10 (2) Government grants mainly represent cash subsidies received from PRC local governments for companies operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. These cash subsidies were not subject to meeting any specific future conditions. |
OTHER NON-OPERATING INCOME_(L_2
OTHER NON-OPERATING INCOME/(LOSS), NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
SCHEDULE OF NON-OPERATING INCOME/(LOSS) NET | SCHEDULE OF NON-OPERATING INCOME/(LOSS) NET Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Gain/(loss) on disposal of long-term investments and subsidiaries, net (Note 9) 112,354 (1,792 ) (23 ) Others 555 3,864 (2,382 ) Total other non-operating income/(loss), net 112,909 2,072 (2,405 ) |
FINANCIAL INCOME_(EXPENSE), N_2
FINANCIAL INCOME/(EXPENSE), NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Incomeexpense Net | |
SCHEDULE OF FINANCIAL INCOME/(EXPENSE), NET | SCHEDULE OF FINANCIAL INCOME/(EXPENSE), NET Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Interest income 15,947 1,606 13,429 Interest expense (4,181 ) (2,462 ) (631 ) Gains/(loss) from fair value changes of equity securities investments, net (Note 9) 59,690 (28,326 ) (80,923 ) Bank charges (529 ) (276 ) (161 ) Others 9,134 15,102 8,060 Total financial income/(expense), net 80,061 (14,356 ) (60,226 ) |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME BEFORE INCOME TAX, DOMESTIC AND FOREIGN | The components of income/(loss) before tax are as follow: SCHEDULE OF INCOME BEFORE INCOME TAX, DOMESTIC AND FOREIGN Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Income/(loss) before tax Income/(loss) from PRC entities 244,163 (113,848 ) (83,575 ) (Loss)/income from overseas entities (35,141 ) 7,300 (66,418 ) Total Income/(loss) before tax 209,022 (106,548 ) (149,993 ) |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) | SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Current income tax expense 17,803 9,866 7,851 Deferred income tax expense 42,698 14,925 - Total income tax expense 60,501 24,791 7,851 |
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION | Reconciliation of the differences between the statutory EIT rate applicable to losses of the consolidated entities and the income tax expenses of the Group: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 PRC Statutory income tax rate 25 % 25 % 25 % Effect on tax rates in different tax jurisdiction 5 % -10 % -6 % The effect of change in the tax rate of subsidiaries 0 % 4 % -1 % Non-deductible expenses 1 % -1 % -1 % Additional deduction for research and development expenditures -6 % 8 % 5 % Share-based compensation 4 % -4 % 0 % Non-taxable income -2 % 1 % 1 % Permanent book-tax differences 4 % -3 % -4 % Change in valuation allowance ( 1 ) -2 % -43 % -24 % Effective tax rates 29 % -23 % -5 % YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 20. TAXATION (CONTINUED) (b) Income tax (continued) (1) Included the impact of the valuation allowance decrease due to disposal of subsidiaries and tax losses forfeiture in 2023. |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The following table sets forth the significant components of the deferred tax assets: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES 2022 2023 As of December 31, 2022 2023 RMB RMB Deferred tax assets Net accumulated losses-carry forward 130,370 140,351 Allowance for credit losses 7,717 18,570 Gain or loss from changes in fair values 1,142 12,841 Inventory write-downs 1,348 1,836 Deferred membership program revenue 31 - Refund payable to members 6 - Others 69 3,818 Less: valuation allowance (140,189 ) (173,529 ) Total deferred tax assets 494 3,887 2022 2023 As of December 31, 2022 2023 RMB RMB Deferred tax liabilities Gain or loss from changes in fair values - 156 Others 494 3,731 Total deferred tax liabilities 494 3,887 |
SUMMARY OF VALUATION ALLOWANCE | SUMMARY OF VALUATION ALLOWANCE Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Balance at beginning of the year (156,150 ) (96,489 ) (140,189 ) Changes of valuation allowance ( 1 ) 59,661 (43,700 ) (33,340 ) Balance at end of the year (96,489 ) (140,189 ) (173,529 ) (1) Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination as of December 31, 2022 and 2023, the Group evaluates a variety of factors supporting the utilization of carry-forwards through a forecast of future taxable profits for each impacted entity within a specific tax jurisdiction, including: the Group’s entities’ operating history and forecast, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2022 and 2023, valuation allowances on a large part of deferred tax assets were provided because it was more likely than not that such portion of deferred tax will not be realized based on the Company’s estimate of future taxable incomes of all its subsidiaries. |
SUMMARY OF OPERATING LOSS CARRYFORWARDS | SUMMARY OF OPERATING LOSS CARRYFORWARDS RMB 2024 277,140 2025 162,394 2026 20,002 2027 145,181 2028 and onwards 140,444 745,161 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITY | The following table sets forth the stock options activity for the years ended December 31, 2021, 2022 and 2023: SCHEDULE OF STOCK OPTION ACTIVITY Number of shares Weighted-average exercise price Weighted average remaining contractual term Aggregate US$ 000’US$ Outstanding as of December 31, 2021 61,930,440 0.21 1.73 - Granted - - Forfeited (64,980 ) 0.20 Exercised (773,640 ) 0.09 Expired - - Outstanding as of December 31, 2022 61,091,820 0.22 0.89 - Granted - Forfeited (173,870 ) 0.23 Exercised - Expired (46,562,380 ) 0.09 Outstanding as of December 31, 2023 14,355,570 0.61 0.27 - Vested and expected to vest as of December 31, 2023 14,355,570 Exercisable as of December 31, 2023 14,355,570 |
SCHEDULE OF FAIR VALUE OF STOCK OPTION | The Group uses the Binominal option pricing model to estimate the fair value of stock options. The assumptions used to value the Company’s options modified were as follow: SCHEDULE OF FAIR VALUE OF STOCK OPTION 2022 2023 Exercise price (US$) N/A N/A Exercise multiple N/A N/A Risk-free interest rate N/A N/A Expected term (in years) N/A N/A Expected dividend yield N/A N/A Expected volatility N/A N/A Expected forfeiture rate (post-vesting) N/A N/A Fair value of the underlying shares on the date of options grants (US$) N/A N/A Fair value of share option (US$) N/A N/A |
SCHEDULE OF SERVICE BASED RSU | A summary of activities of the service-based RSUs for the years ended December 31, 2021, 2022 and 2023 is presented below: SCHEDULE OF SERVICE BASED RSU Number of RSUs Weighted-Average Grant-Date Fair Value US$ Unvested at December 31, 2021 45,704,350 0.45 Granted 9,850,000 0.63 Vested (10,326,250 ) Forfeited (20,306,000 ) Unvested at December 31, 2022 24,922,100 0.45 Granted 2,900,000 0.02 Vested (1,587,950 ) Forfeited (11,609,400 ) Unvested at December 31, 2023 14,624,750 0.34 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE MEASUREMENT OF GROUP ASSETS AND LIABILITIES | As of December 31, 2022 and 2023, information about inputs into the fair value measurement of the Group’s assets and liabilities that are measured or disclosed at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: SCHEDULE OF FAIR VALUE MEASUREMENT OF GROUP ASSETS AND LIABILITIES Fair value measurement at reporting date using Description Fair value Quoted Prices in Active Significant Other Significant RMB RMB RMB RMB Assets: Short-term investments Time deposits 142,357 - 142,357 - Wealth management products 69,646 - 69,646 - Long-term investments Equity securities with readily determinable fair value 114,843 114,843 - - Equity securities accounted for under measurement alternative 227,371 - 227,371 - Total assets 554,217 114,843 439,374 - Fair value measurement at reporting date using Description Fair value Quoted Prices in Active Significant Other Significant RMB RMB RMB RMB Assets: Short-term investments Debt securities for trading 7,195 - 7,195 - Long-term investments Equity securities with readily determinable fair value 37,650 37,650 - - Equity securities accounted for under measurement alternative 220,981 - 220,981 - Total assets 265,826 37,650 228,176 - |
NET INCOME_(LOSS) PER SHARE (Ta
NET INCOME/(LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net income/(loss) per share attributable to ordinary shareholders | |
SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE | Basic and diluted net loss per share for each of the years/periods presented are calculated as follows: SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Numerator: Net income/(loss) attributable to YUNJI INC’s ordinary shareholders 131,966 (138,173 ) (165,129 ) Denominator: Denominator for basic earnings per ordinary share -Weighted average ordinary shares outstanding 2,139,963,573 2,088,319,721 1,971,108,505 Dilutive effect of share options 7,242,017 - - Denominator for diluted earnings per ordinary share 2,147,205,590 2,088,319,721 1,971,108,505 Net income/(loss) per share attributable to ordinary shareholders: -Basic 0.06 (0.07 ) (0.08 ) -Diluted 0.06 (0.07 ) (0.08 ) |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF MAJOR RELATED PARTIES AND THEIR RELATIONSHIPS WITH GROUP | The table below sets forth the major related parties and their relationships with the Group as of December 31, 2023: SCHEDULE OF MAJOR RELATED PARTIES AND THEIR RELATIONSHIPS WITH GROUP Name of related parties Relationship with the Group Small Ye Group Controlled by Mr. Xiao Shanglue, Founder and CEO of the Group Hangzhou Tianshi Technology Co., Ltd. (“Tianshi”)* An associate of the Group (incorporated in 2017) Guangdong Weixin Technology Co., Ltd. (“Weixin”) An associate of the Group (incorporated in 2018) Hangzhou Bixin Biotechnology Co., Ltd. (“Bixin”) An associate of the Group (incorporated in 2019) Shanxi Yunnong Logistic Management Co., Ltd. (“Yunnong”) An associate of the Group (incorporated in 2019) Zhejiang Jimi E-commerce Co., Ltd. (“Jimi”) An associate of the Group (incorporated in 2020) Zhejiang Jibi Technology Co., Ltd. (“Jibi”) An associate of the Group (incorporated in 2020) Hangzhou Xingsheng Brand Marketing Management Co., Ltd. (“Xingsheng”)* An associate of the Group (incorporated in 2020) Hangzhou Yuncheng Brand Management Co., Ltd. (“Yuncheng”)* An associate of the Group (incorporated in 2020) Hangzhou Huaji Brand Marketing Management Co., Ltd. (“Huaji”)* An associate of the Group (incorporated in 2020) * The investments in these associates were disposed by the Group in 2022 and 2023. |
SCHEDULE OF RELATED PARTY BALANCES AND TRANSACTIONS | The Group entered into agreements with aforementioned equity method classified investees as related party transactions, including purchase of merchandise from them and marketplace services provided to them. Details of related party balances and transactions as of December 31, 2021, 2022 and 2023 are as follows: SCHEDULE OF RELATED PARTY BALANCES AND TRANSACTIONS Advance to related parties and amounts due from related parties 2022 2023 As of December 31, 2022 2023 RMB RMB Amounts due from related parties Jimi 67 1,134 Others 135 227 Total 202 1,361 Due from related parties, current 202 1,361 Amounts due to related parties 2022 2023 As of December 31, 2022 2023 RMB RMB Bixin 376 1,132 Jibi 618 809 Small Ye Group 691 691 Yunnong 728 351 Jimi 125 125 Weixin 5,382 89 Xingsheng 1,209 - Tianshi 884 - Others 595 338 Due to related parties, current 10,608 3,535 |
SCHEDULE OF RELATED PARTY TRANSACTIONS | The terms of the agreements the Group entered into with the related parties are comparable to the terms in arm’s-length transactions with third-party customers and vendors. SCHEDULE OF RELATED PARTY TRANSACTIONS Transactions with related parties Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Purchase of merchandise Jimi 17,519 7,572 16,353 Tianshi 11,256 2,722 2,793 Bixin 7,637 3,328 1,852 Yunnong 4,301 - 1,286 Weixin 14,508 32 - Yuncheng 13,147 - - Xingsheng 11,768 7,384 - Huaji 4,265 - - Others 7,714 472 312 purchases of merchandise from related parties 92,115 21,510 22,596 YUNJI INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in thousands, except for share and per share data, unless otherwise noted) 26. RELATED PARTY BALANCES AND TRANSACTIONS (CONTINUED) Transactions with related parties (continued) Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Marketplace service provided to related parties Jimi 5,637 1,699 1,501 Bixin 2,322 1,234 1,075 Yuncheng 3,309 - - Others 815 172 80 Market place service provided to related parties 12,083 3,105 2,656 Other goods and services provided to related parties Bixin 3 172 Jimi 313 131 56 Tianshi - 114 45 Xingsheng - 554 - Yuncheng 208 - - Others 18 21 41 Other goods and services provided to related parties 539 823 314 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
SUMMARY OF CONDENSED BALANCE SHEETS PARENT COMPANY | Balance sheets of the parent company SUMMARY OF CONDENSED BALANCE SHEETS PARENT COMPANY As of December 31, 2022 As of December 31, 2023 RMB RMB ASSETS Current assets: Cash and cash equivalents 65,363 64,070 Short-term investment 70,125 7,195 Amounts due from the group companies 161,124 195,917 Prepaid expenses and other current assets 1,516 1,059 Total current assets 298,128 268,241 Non-current assets: Long-term investments 39,817 39,500 Investment in subsidiaries and VIEs 1,020,937 883,681 Total non-current assets 1,060,754 923,181 Total assets 1,358,882 1,191,422 LIABILITIES AND EQUITY Current liabilities Other payables and accruals 3,852 1,206 Total liabilities 3,852 1,206 Shareholders’ equity Ordinary shares (US$ 0.000005 20,000,000,000 1,208,831,222 949,960,000 1,068,437,352 1,016,418,532 949,960,000 949,960,000 70 70 Ordinary shares (US$0.000005 par value 20,000,000,000 shares authorized as of December 31, 2022 and 2023; 1,208,831,222 Class A ordinary shares and 949,960,000 Class B ordinary shares issued as of December 31, 2022 and 2023; 1,068,437,352 and 1,016,418,532 Class A ordinary shares and 949,960,000 and 949,960,000 Class B ordinary shares outstanding as of December 31, 2022 and 2023, respectively) 70 70 Additional paid-in capital 7,332,098 7,327,581 Accumulated other comprehensive income 91,498 116,171 Less: Treasury stock ( 140,393,870 192,412,690 (98,709 ) (116,108 ) Accumulated deficit (5,969,927 ) (6,137,498 ) Total shareholders’ equity 1,355,030 1,190,216 Total liabilities and shareholders’ equity 1,358,882 1,191,422 |
SUMMARY OF CONDENSED STATEMENTS OF COMPREHENSIVE OR LOSS OF THE PARENT COMPANY | Statements of comprehensive income/(loss) of the parent company SUMMARY OF CONDENSED STATEMENTS OF COMPREHENSIVE OR LOSS OF THE PARENT COMPANY Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Operation expense Sales and marketing (2,052 ) - - General and administrative (17,632 ) (10,706 ) (8,557 ) Total operating expenses (19,684 ) (10,706 ) (8,557 ) Share of income/(loss) of subsidiaries and VIEs 167,444 (115,080 ) (151,117 ) Financial expense, net (15,883 ) (12,283 ) (518 ) Foreign exchange loss (466 ) (134 ) - Other non-operating income/(expense), net 555 30 (4,232 ) Income/(loss) before income tax expense 131,966 (138,173 ) (164,424 ) Equity in loss of affiliates, net of tax - - (705 ) Net income/(loss) 131,966 (138,173 ) (165,129 ) Net income/(loss) attributable to ordinary shareholders 131,966 (138,173 ) (165,129 ) Net income/(loss) 131,966 (138,173 ) (165,129 ) Other comprehensive income Foreign currency translation 35,433 134,143 24,673 Total comprehensive income/(loss) 167,399 (4,030 ) (140,456 ) |
SUMMARY OF CONDENSED STATEMENTS OF CASH FLOWS OF THE PARENT COMPANY | Statements of cash flows of the parent company SUMMARY OF CONDENSED STATEMENTS OF CASH FLOWS OF THE PARENT COMPANY Year Ended December 31, 2021 Year Ended December 31, 2022 Year Ended December 31, 2023 RMB RMB RMB Net cash used in operating activities (23,226 ) (9,075 ) (8,557 ) Net cash generated from investing activities 29,919 154,552 31,720 Net cash generated from/(used in) financing activities 788 (94,752 ) (25,334 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,457 ) 5,960 878 Net increase/(decrease) in cash, cash equivalents and restricted cash 5,024 56,685 (1,293 ) Cash, cash equivalents and restricted cash at beginning of the year 3,654 8,678 65,363 Cash, cash equivalents and restricted cash at end of the year 8,678 65,363 64,070 |
SCHEDULE OF PRINCIPAL SUBSIDIAR
SCHEDULE OF PRINCIPAL SUBSIDIARIES (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Yunji Holding Limited [Member] | |
Place of incorporation | Hong Kong |
Date of incorporation or acquisition | Dec. 20, 2017 |
Percentage of direct or indirect | 100% |
Principal activities | Investment holding |
Zhejiang Youji Supply Chain Management Co Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Nov. 30, 2016 |
Percentage of direct or indirect | 100% |
Principal activities | Procurement |
Zhejiang Jiyuan Network Technology Co Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Aug. 14, 2018 |
Percentage of direct or indirect | 100% |
Principal activities | Sales of merchandise |
Hangzhou Jichuang Network Technology Co Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | May 23, 2016 |
Percentage of direct or indirect | 100% |
Principal activities | Investment holding |
Yunji Hongkong Limited [Member] | |
Place of incorporation | Hong Kong |
Date of incorporation or acquisition | Aug. 25, 2015 |
Percentage of direct or indirect | 100% |
Principal activities | Sales of merchandise |
Hangzhou Yunchuang Sharing Network Technology Co ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Jun. 13, 2018 |
Percentage of direct or indirect | 100% |
Principal activities | Investment holding |
Desking Technology hk Co Limited [Member] | |
Place of incorporation | Hong Kong |
Date of incorporation or acquisition | Jul. 26, 2016 |
Percentage of direct or indirect | 100% |
Principal activities | Investment holding and Financing solution |
Jironghuishang Commercial Factoringtianjin Co Ltd [Member] | |
Place of incorporation | Tianjin |
Date of incorporation or acquisition | Oct. 16, 2018 |
Percentage of direct or indirect | 100% |
Principal activities | Financing solution |
Zhejiang Yunxuan Supply Chain Management Co Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Aug. 09, 2018 |
Percentage of direct or indirect | 100% |
Principal activities | Procurement |
Yunji Sharing Technology Co Ltd ("Yunji Sharing") [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Mar. 05, 2018 |
Percentage of direct or indirect | 100% |
Principal activities | Investment holding |
SCHEDULE OF VARIABLE INTEREST E
SCHEDULE OF VARIABLE INTEREST ENTITIES (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Zhejiang Yunji Preferred Ecommerce Co Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Jun. 13, 2018 |
Percentage of direct or indirect | 100% |
Principal activities | Investment holding |
Zhejiang Jishang Preferred Ecommerce Co Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Apr. 22, 2016 |
Percentage of direct or indirect | 100% |
Principal activities | Procurement |
Zhejiang Jishang Preferred Ecommerce Co Ltd Jixiang [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | Aug. 14, 2018 |
Percentage of direct or indirect | 100% |
Principal activities | E-Commerce |
Ningbo Meishan Bonded Port Area Jichuang Taihong Venture Capital Partnership lp Jichuang Taihong [Member] | |
Place of incorporation | Ningbo |
Date of incorporation or acquisition | Jan. 15, 2019 |
Percentage of direct or indirect | 99.75% |
Principal activities | Investment holding |
Hangzhou Jiweixiang Food Co Ltd [Member] | |
Place of incorporation | Hangzhou |
Date of incorporation or acquisition | May 08, 2020 |
Percentage of direct or indirect | 100% |
Principal activities | Distribution sales |
SCHEDULE OF RISKS IN RELATION I
SCHEDULE OF RISKS IN RELATION IN BALANCE SHEET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash and cash equivalents | $ 72,894 | ¥ 517,542 | ¥ 414,634 | ¥ 567,204 | |
Restricted cash | 3,827 | 27,169 | 42,109 | ¥ 62,528 | |
Accounts receivable, net | 9,058 | 64,312 | 94,111 | ||
Advance to suppliers | 1,980 | 14,058 | 32,738 | ||
Inventories, net | 6,016 | 42,716 | 54,651 | ||
Prepaid expense and other current assets | 18,908 | 134,247 | 362,065 | ||
Property, equipment and software, net | 24,712 | 175,451 | 168,928 | ||
Long-term investments | 51,291 | 364,159 | 414,325 | ||
Other non-current assets | 26,630 | 189,067 | 96,414 | ||
Total assets | 218,846 | 1,553,784 | 1,892,411 | ||
Accounts payable | 13,631 | 96,782 | 138,903 | ||
Deferred revenue | 1,326 | 9,412 | 21,748 | ||
Incentive payables to members | 17,590 | 124,889 | 207,331 | ||
Members management fee payable | 616 | 4,373 | 11,087 | ||
Other payable and accrued liabilities | 15,381 | 109,200 | 145,527 | ||
Total liabilities | 51,084 | 362,689 | 536,511 | ||
Related Party [Member] | |||||
Amounts due from related parties | 192 | 1,361 | 202 | ||
Amounts due to related parties | $ 498 | 3,535 | 10,608 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Cash and cash equivalents | 20,176 | 114,265 | |||
Restricted cash | 27,169 | 42,109 | |||
Accounts receivable, net | 60,608 | 23,683 | |||
Advance to suppliers | 1,774 | 5,434 | |||
Inventories, net | 2,491 | 2,635 | |||
Prepaid expense and other current assets | 58,441 | 81,307 | |||
Property, equipment and software, net | 2,430 | 4,546 | |||
Long-term investments | 206,152 | 214,450 | |||
Other non-current assets | 5,485 | 6,417 | |||
Total assets | 916,131 | 1,214,547 | |||
Accounts payable | 48,198 | 71,007 | |||
Deferred revenue | 6,836 | 16,398 | |||
Incentive payables to members | 124,889 | 207,331 | |||
Members management fee payable | 3,066 | 4,997 | |||
Other payable and accrued liabilities | 65,587 | 91,469 | |||
Total liabilities | [1] | 978,338 | 1,300,137 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Nonrelated Party [Member] | |||||
Amounts due from related parties | [2] | 530,998 | 719,655 | ||
Amounts due to related parties | [3] | 727,459 | 900,852 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Related Party [Member] | |||||
Amounts due from related parties | 407 | 46 | |||
Amounts due to related parties | ¥ 2,303 | ¥ 8,083 | |||
[1]Amounts of the consolidated VIEs and VIEs’ subsidiaries without recourse to the primary beneficiary is RMB 399,285 250,879 |
SCHEDULE OF RISKS IN RELATION_2
SCHEDULE OF RISKS IN RELATION IN BALANCE SHEET (Details) (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Liabilities Current | $ 49,518 | ¥ 351,567 | ¥ 536,366 |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Liabilities Current | ¥ 250,879 | ¥ 399,285 |
SCHEDULE OF RISKS IN RELATION_3
SCHEDULE OF RISKS IN RELATION IN FINANCIAL STATEMENTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Operating cost and expenses: | ||||
Total operating cost and expenses | $ (103,625) | ¥ (735,726) | ¥ (1,254,280) | ¥ (2,192,425) |
Net income/(loss) | (23,258) | (165,120) | (138,390) | 132,284 |
Net cash generated by/(used in) operating activities | (26,516) | (188,261) | (216,822) | (25,991) |
Net cash (used in)/generated by investing activities | 41,414 | 294,035 | 92,565 | (513,795) |
Net cash (used in)/generated by financing activities | (3,568) | (25,334) | (94,555) | (463) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,060 | 7,528 | 45,823 | (19,763) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | 12,390 | 87,968 | (172,989) | (560,012) |
Cash, cash equivalents and restricted cash at beginning of the year | 64,331 | 456,743 | 629,732 | 1,189,744 |
Cash, cash equivalents and restricted cash at the end of the year | $ 76,721 | 544,711 | 456,743 | 629,732 |
Variable Interest Entity Primary Beneficiary Third Parties [Member] | ||||
Revenues: | ||||
Total revenues | 316,382 | 349,259 | 513,299 | |
Operating cost and expenses: | ||||
Total operating cost and expenses | (272,602) | (478,245) | (906,559) | |
Variable Interest Entity Primary Beneficiary Intra Group [Member] | ||||
Revenues: | ||||
Total revenues | 91,657 | 229,562 | 501,168 | |
Operating cost and expenses: | ||||
Total operating cost and expenses | (142,717) | (178,573) | (118,456) | |
Net cash generated by/(used in) operating activities | (453,916) | (698,690) | (497,190) | |
Net cash (used in)/generated by investing activities | 118,831 | 60,000 | (180,000) | |
Net cash (used in)/generated by financing activities | 1,500 | 4,250 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Revenues: | ||||
Total revenues | 408,039 | 578,821 | 1,014,467 | |
Operating cost and expenses: | ||||
Total operating cost and expenses | (415,319) | (656,818) | (1,025,015) | |
Net income/(loss) | (7,276) | (75,329) | 164,950 | |
Net cash generated by/(used in) operating activities | (238,689) | (47,258) | 42,483 | |
Net cash (used in)/generated by investing activities | 127,859 | 65,216 | (171,898) | |
Net cash (used in)/generated by financing activities | 1,500 | 4,447 | (1,198) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 301 | 1,127 | (383) | |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (109,029) | 23,532 | (130,996) | |
Cash, cash equivalents and restricted cash at beginning of the year | 156,374 | 132,842 | 263,838 | |
Cash, cash equivalents and restricted cash at the end of the year | 47,345 | 156,374 | 132,842 | |
Variable Interest Entity Primary Beneficiary External Parties [Member] | ||||
Operating cost and expenses: | ||||
Net cash generated by/(used in) operating activities | 215,227 | 651,432 | 539,673 | |
Net cash (used in)/generated by investing activities | 9,028 | 5,216 | 8,102 | |
Net cash (used in)/generated by financing activities | ¥ 197 | ¥ (1,198) |
PRINCIPAL ACTIVITIES AND ORGA_3
PRINCIPAL ACTIVITIES AND ORGANIZATION (Details Narrative) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Variable interest entity registered capital | ¥ 33,797 | |
Exclusive Service Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Agreement term | 10 years | |
Equity Interest Pledge Agreements [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Equity interest percentage | 100% |
SCHEDULE OF ALLOWANCE FOR CREDI
SCHEDULE OF ALLOWANCE FOR CREDIT LOSSES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Balance at beginning of year | ¥ 33,363 | ¥ 12,504 | ¥ 13,089 |
Allowance for credit losses | 37,098 | 21,233 | 24,045 |
Write-offs | (72) | (374) | (24,630) |
Balance at end of year | ¥ 70,389 | ¥ 33,363 | ¥ 12,504 |
SCHEDULE OF ESTIMATED USEFUL LI
SCHEDULE OF ESTIMATED USEFUL LIVES (Details) | Dec. 31, 2023 |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life, Shorter of Lease Term or Asset Utility [Member] |
Electronic Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Software Development [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Minimum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Maximum [Member] | Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
PRINCIPAL ACCOUNTING POLICIES_3
PRINCIPAL ACCOUNTING POLICIES (Details Narrative) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Product Information [Line Items] | ||||
Foreign exchange loss | $ 950 | ¥ 6,743 | ¥ 15,697 | ¥ 1,300 |
Foreign currency translation gain (loss) | $ 3,124 | ¥ 22,178 | 78,777 | (25,116) |
Foreign currency exchange rate | 7.0999 | |||
Factoring receivables | ¥ 29,147 | 80,484 | ||
Inventory write down | 9,270 | 4,792 | 25,696 | |
Employee benefit expenses | ¥ 163,324 | 228,685 | 273,773 | |
General reserve description | The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. | The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. | ||
Statutory reserves description | The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. | The appropriation to the statutory surplus fund must be 10% of the after-tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. | ||
Statutory surplus fund | ¥ 176 | 2,059 | 1,395 | |
Sales of Merchandise [Member] | ||||
Product Information [Line Items] | ||||
Remaining performance obligation | 6,063 | 18,106 | ||
Membership Program [Member] | ||||
Product Information [Line Items] | ||||
Remaining performance obligation | 3,144 | 2,596 | ||
Referral Incentives [Member] | ||||
Product Information [Line Items] | ||||
Long-aged balances | ¥ 69,545 | ¥ 48,709 |
SUMMARY OF CUSTOMERS CONTRIBUTI
SUMMARY OF CUSTOMERS CONTRIBUTION (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Product and Service Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage of customer | 24% | 17% |
CONCENTRATION AND RISKS (Detail
CONCENTRATION AND RISKS (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |||
Increase in foreign currency exchange rate | 1.70% | 9.24% | 2.30% |
SCHEDULE OF SHORT TERM INVESTME
SCHEDULE OF SHORT TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Schedule of Investments [Line Items] | ||||
Total short-term investment | $ 1,013 | ¥ 7,195 | ¥ 212,003 | |
Debt Security For Trading [Member] | ||||
Schedule of Investments [Line Items] | ||||
Total short-term investment | [1] | 7,195 | ||
Time Deposits [Member] | ||||
Schedule of Investments [Line Items] | ||||
Total short-term investment | 142,357 | |||
Wealth Management Products [Member] | ||||
Schedule of Investments [Line Items] | ||||
Total short-term investment | [2] | ¥ 69,646 | ||
[1]In October 2023, the Group acquired a debt security at a cash consideration of US$ 1 7.16 31 5.2 2.04 3.91 |
SCHEDULE OF SHORT TERM INVEST_2
SCHEDULE OF SHORT TERM INVESTMENTS (Details) (Parenthetical) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2023 USD ($) | Oct. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||||||
Cash consideration for debt security | $ 1,008 | ¥ 7,159 | ¥ 465,242 | ¥ 377,756 | ||
Wealth Management Products [Member] | ||||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||||||
Investment weighted average return | 3.91% | 3.91% | 2.04% | 5.20% | ||
Debt Security For Trading [Member] | ||||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||||||
Cash consideration for debt security | $ 1,000 | ¥ 7,160 | ||||
Fair value gain on investment | ¥ 31 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Credit Loss [Abstract] | |||
Receivables from the distribution sales | ¥ 62,576 | ¥ 23,018 | |
Factoring receivables | 29,147 | 80,484 | |
Receivables from merchants under marketplace business | 6,613 | 4,590 | |
Receivables from sales channels on other platforms | 894 | 1,699 | |
Receivables from other revenue | 241 | 1,082 | |
Less: allowance for credit losses | (35,159) | (16,762) | |
Total accounts receivable, net | $ 9,058 | ¥ 64,312 | ¥ 94,111 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
-Secured | [1] | ¥ 49,697 | ¥ 139,292 | |
-Unsecured | [1] | 31,200 | 130,022 | |
VAT-input deductible | 25,328 | 25,708 | ||
Receivables from third-party payment settlement platform | [2] | 17,745 | 34,179 | |
Deposits | 5,489 | 13,917 | ||
Receivables from disposal of a subsidiary | [3] | 2,927 | 1,964 | |
Others | 14,878 | 31,493 | ||
Less: allowance for credit losses | (13,017) | (14,510) | ||
Total prepaid expenses and other current assets, net | $ 18,908 | ¥ 134,247 | ¥ 362,065 | |
[1]Loan receivables represent the principal and interest to be collected on loans provided by the Group to third-party companies.[2]Receivables from third-party payment settlement platform represent amount due from the third-party on-line payment service providers in relation to their processing of payments to the Group.[3]In the fourth quarter of 2020, the Group disposed of a subsidiary, Wuhan Yunteng Logistics Co., Ltd. (“Wuhan Yunteng”), to a third party for a total cash consideration of RMB 26,676 1 2,224 11,133 |
SCHEDULE OF PREPAID EXPENSES _2
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) (Parenthetical) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2020 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2025 USD ($) | Dec. 31, 2025 CNY (¥) | Dec. 31, 2024 USD ($) | Dec. 31, 2024 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Financing Receivable, Past Due [Line Items] | |||||||||
Secured loan receivables | $ 15 | ¥ 106,241 | |||||||
Secured Debt | 118 | ||||||||
Wuhang Yungteng Logistics Company Limited [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Discontinued operation consideration | ¥ 26,676,000 | ||||||||
Loss on disposal of business | ¥ 1,000,000 | ||||||||
Wuhang Yungteng Logistics Company Limited [Member] | Recoverable Within One Year [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Long-term receivables from disposal of a subsidiary | 2,224,000 | ||||||||
Wuhang Yungteng Logistics Company Limited [Member] | Other Noncurrent Assets [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Long-term receivables from disposal of a subsidiary | 11,133,000 | ||||||||
Finance Receivable One Two And Three [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Finance receivable principal amount | $ 20 | ¥ 139,292,000 | |||||||
Finance Receivable Four [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Finance receivable principal amount | 78,000,000 | ||||||||
Finance Receivable Five [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Finance receivable principal amount | 50,000,000 | ||||||||
Finance receivable interest percentage | 20% | ||||||||
Finance Receivable Six [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Interest Receivable | ¥ 1,000,000 | ||||||||
Forecast [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Loans receivable to be collected | $ 7 | ¥ 49,579 | |||||||
Other Noncurrent Assets [Member] | Forecast [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Loans receivable to be collected | $ 8 | ¥ 56,662 | |||||||
Unsecured Loan One [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Finance receivable principal amount | 31,200,000 | ||||||||
Finance receivable interest percentage | 8% | ||||||||
Loans receivable to be collected | 10,000,000 | ||||||||
Unsecured Loan Two [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Finance receivable principal amount | 60,000,000 | ||||||||
Finance receivable interest percentage | 4.35% | ||||||||
Unsecured Loan Two [Member] | Other Noncurrent Assets [Member] | |||||||||
Financing Receivable, Past Due [Line Items] | |||||||||
Loans receivable to be collected | ¥ 50,000,000 |
SCHEDULE OF INVENTORY, NET (Det
SCHEDULE OF INVENTORY, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Inventory Disclosure [Abstract] | |||
Merchandise and packing materials | ¥ 50,061 | ¥ 60,043 | |
Less: inventory write-downs | (7,345) | (5,392) | |
Total inventories, net | $ 6,016 | ¥ 42,716 | ¥ 54,651 |
SCHEDULE OF PROPERTY EQUIPMENT
SCHEDULE OF PROPERTY EQUIPMENT AND SOFTWARE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Property, Plant and Equipment [Line Items] | ||||
Subtotal | ¥ 231,216 | ¥ 224,017 | ||
Less: accumulated depreciation | [1] | (55,765) | (55,089) | |
Total property, equipment and software, net | $ 24,712 | 175,451 | 168,928 | |
Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | [2] | 171,582 | ||
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | 29,681 | 32,340 | ||
Electronic Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | 15,489 | 16,471 | ||
Software and Software Development Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | 6,728 | 7,092 | ||
Furniture and Fixtures [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | 5,687 | 3,728 | ||
Construction in Progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | [2] | 1,418 | 163,696 | |
Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | ¥ 631 | ¥ 690 | ||
[1]Depreciation expenses were RMB 15,985 7,718 6,545 No |
SCHEDULE OF PROPERTY EQUIPMEN_2
SCHEDULE OF PROPERTY EQUIPMENT AND SOFTWARE (Details) (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 03, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expenses | ¥ 6,545 | ¥ 7,718 | ¥ 15,985 | |
Asset impairment charges | ¥ 0 | ¥ 0 | ¥ 0 | |
Office Building [Member] | Series of Individually Immaterial Asset Acquisitions [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
[custom:PercentageOfConsiderationPaidForAssetAcquisition] | 50% | 50% | ||
Asset Acquisition, Consideration Transferred | ¥ 80,732 | ¥ 81,125 | ||
Property plant and equipment estimated useful life | 40 years |
SCHEDULE OF LONG-TERM INVESTMEN
SCHEDULE OF LONG-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Schedule Of Long-term Investments | |||
Equity method investments | ¥ 105,528 | ¥ 72,111 | |
Equity securities accounted for under measurement alternative | 220,981 | 227,371 | |
Equity securities with readily determinable fair values | 37,650 | 114,843 | |
Total long-term investments | $ 51,291 | ¥ 364,159 | ¥ 414,325 |
LONG-TERM INVESTMENTS (Details
LONG-TERM INVESTMENTS (Details Narrative) ¥ in Thousands, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2022 CNY (¥) | Nov. 30, 2021 CNY (¥) | May 31, 2019 USD ($) shares | May 31, 2019 CNY (¥) shares | Feb. 28, 2021 CNY (¥) shares | Feb. 28, 2021 HKD ($) shares | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Investments in limited partnership funds | ¥ 105,528 | ¥ 72,111 | |||||||||
Fair value of investment unrealized gain (loss) | 78,739 | 32,902 | |||||||||
Impairment of investments | 9,427 | 5,700 | |||||||||
Fair value of investment | 37,650 | 114,843 | |||||||||
Hongkong Listed Company Gxg [Member] | |||||||||||
Equity securities cost | ¥ 89,517 | ||||||||||
Equity Securities With Readily Determinable Fair Value [Member] | Hongkong Listed Company Gxg [Member] | |||||||||||
Number of equity shares purchased | shares | 22,740,000 | 22,740,000 | |||||||||
Payments to acquire investments | $ 13 | ¥ 13,000 | |||||||||
Other Operating Income (Expense) [Member] | Enlarged A Group [Member] | |||||||||||
Equity ownership interest | 2.26% | ||||||||||
Finance Income Expense [Member] | Enlarged A Group [Member] | |||||||||||
Fair value of investment unrealized gain (loss) | ¥ 79,541 | ||||||||||
Investee A [Member] | Other Operating Income (Expense) [Member] | |||||||||||
Gain on disposal of equity investments | ¥ 110,500 | ||||||||||
Investee B [Member] | Finance Income Expense [Member] | |||||||||||
Fair value of investment unrealized gain (loss) | ¥ 6,475 | ||||||||||
Limited Partnership [Member] | |||||||||||
Consideration to acquire equity method investments | 30,000 | 50,000 | |||||||||
Investments in limited partnership funds | 96,904 | 55,442 | |||||||||
Initial investment of fund | 20,000 | ||||||||||
Amount withdrawn | 248 | ||||||||||
Limited Liability Companies [Member] | |||||||||||
Consideration to acquire equity method investments | $ 1.5 | ¥ 10,770 | $ 1 | ¥ 6,367 | |||||||
Meituan (3690 HK) [Member] | Equity Securities With Readily Determinable Fair Value [Member] | |||||||||||
Number of equity shares purchased | shares | 106,600 | 106,600 | |||||||||
Tencent (0700. HK) [Member] | Equity Securities With Readily Determinable Fair Value [Member] | |||||||||||
Number of equity shares purchased | shares | 55,000 | 55,000 | |||||||||
Tencent and Meituan [Member] | Equity Securities With Readily Determinable Fair Value [Member] | |||||||||||
Payments to acquire investments | ¥ 65,065 | $ 77.3 |
SCHEDULE OF OTHER NON CURRENT A
SCHEDULE OF OTHER NON CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Other Non-current Assets | ||||
- Unsecured | ¥ 60,000 | |||
- Secured | 56,662 | |||
Long-term receivables from disposal of a subsidiary (Note 6) | 11,133 | 13,137 | ||
Prepayment of commercial properties | [1] | 78,000 | 78,000 | |
Others | 5,485 | 7,368 | ||
Less: allowance for doubtful accounts | (22,213) | (2,091) | ||
Total other non-current assets | $ 26,630 | ¥ 189,067 | ¥ 96,414 | |
[1]In 2020, the Group purchased commercial properties from a third party and paid the full amount in advance with consideration of US$ 11.25 78,000 |
SCHEDULE OF OTHER NON CURRENT_2
SCHEDULE OF OTHER NON CURRENT ASSETS (Details) (Parenthetical) - 12 months ended Dec. 31, 2020 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Prepayment of consideration | $ 11,250 | ¥ 78,000 |
SCHEDULE OF ACCOUNTS PAYABLE (D
SCHEDULE OF ACCOUNTS PAYABLE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Payables and Accruals [Abstract] | ||||
Merchandise purchase payables | ¥ 61,004 | ¥ 87,489 | ||
Warehouse and logistic fees payables | 3,074 | 1,311 | ||
Payable to merchants | [1] | 32,704 | 50,103 | |
Total accounts payable | $ 13,631 | ¥ 96,782 | ¥ 138,903 | |
[1]Payable to merchants represents the unpaid balances to the merchants of cash collected by the Group on behalf of the merchants for products sold on Yunji App when the Group is viewed as the agent in the sales arrangement. |
SCHEDULE OF DEFERRED REVENUE (D
SCHEDULE OF DEFERRED REVENUE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Total deferred revenue | $ 1,326 | ¥ 9,412 | ¥ 21,748 |
Merchandise Revenue [Member] | |||
Total deferred revenue | 6,063 | 18,106 | |
Deferred Market Place Revenue [Member] | |||
Total deferred revenue | 3,144 | 2,596 | |
Deferred Other Revenue [Member] | |||
Total deferred revenue | ¥ 205 | ¥ 1,046 |
DEFERRED REVENUE (Details Narra
DEFERRED REVENUE (Details Narrative) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Revenue | |||
Deferred revenue, revenue recognized | ¥ 21,748 | ¥ 105,752 | ¥ 50,951 |
SCHEDULE OF INCENTIVE PAYABLES
SCHEDULE OF INCENTIVE PAYABLES TO MEMBERS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Incentive Payables To Members | |||
Incentive payables to members | $ 17,590 | ¥ 124,889 | ¥ 207,331 |
SCHEDULE OF MEMBERS MANAGEMENT
SCHEDULE OF MEMBERS MANAGEMENT FEES PAYABLE (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Member Management Fees Payable | ||
Member management fees payable | ¥ 4,373 | ¥ 11,087 |
MEMBER MANAGEMENT FEES PAYABL_2
MEMBER MANAGEMENT FEES PAYABLE (Details Narrative) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Selling and Marketing Expense [Member] | |||
Member management fees | ¥ 57,373 | ¥ 101,984 | ¥ 174,798 |
SCHEDULE OF OPERATING LEASES SU
SCHEDULE OF OPERATING LEASES SUPPLEMENTAL CASH FLOW INFORMATION (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Lease | ||
Cash paid for amounts included in the measurement of lease liabilities | ¥ 5,332 | ¥ 4,184 |
Right-of-use assets obtained in exchange for operating lease liabilities | ¥ 18,106 |
SCHEDULE OF OPERATING LEASES _2
SCHEDULE OF OPERATING LEASES SUPPLEMENTAL BALANCE SHEET INFORMATION (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Operating Lease | |||
Right-of-use assets | $ 2,325 | ¥ 16,507 | ¥ 231 |
Operating lease liabilities - current | 476 | 3,376 | 1,162 |
Operating lease liabilities - non-current | $ 1,566 | 11,122 | 145 |
Total lease liabilities | ¥ 14,498 | ¥ 1,307 | |
Weighted average remaining lease term | 4 years 6 months | 4 years 6 months | 1 year 2 months 4 days |
Weighted average discount rate | 4.75% | 4.75% | 4.75% |
SCHEDULE OF MATURITIES OF LEASE
SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Lease | ||
2024 | ¥ 4,018 | |
2025 | 4,018 | |
2026 | 4,018 | |
2027 | 4,018 | |
Total operating lease payments | 16,072 | |
Less: imputed interest | (1,574) | |
Total operating lease | ¥ 14,498 | ¥ 1,307 |
OPERATING LEASE (Details Narrat
OPERATING LEASE (Details Narrative) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operaitng lease costs | ¥ 1,742 | ¥ 2,774 |
Minimum [Member] | ||
Operating lease, remaining lease term | 1 year | |
Maximum [Member] | ||
Operating lease, remaining lease term | 5 years |
SCHEDULE OF OTHER PAYABLE AND A
SCHEDULE OF OTHER PAYABLE AND ACCRUED LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Payables and Accruals [Abstract] | ||||
Merchants deposits | [1] | ¥ 31,369 | ¥ 42,452 | |
Supplier deposits | [2] | 25,538 | 32,997 | |
Salaries and welfare payable | 18,141 | 28,735 | ||
Taxes payable | 14,555 | 15,531 | ||
Accrued marketing and other operational expenses | 7,336 | 12,682 | ||
Accrued professional fees | 6,782 | 10,165 | ||
Others | 5,479 | 2,965 | ||
Total other payable and accrued liabilities | $ 15,381 | ¥ 109,200 | ¥ 145,527 | |
[1]The deposit obtained from the merchants is to ensure implementation of Yunji App’s platform policy and good product quality to be sold by the merchants on Yunji App under the Group’s marketplace business model. The deposit can be withdrawn immediately after the merchants terminate its online shop on Yunji App.[2]The deposit obtained from the suppliers is to ensure inventory level ready for the Group to purchase and good product quality under the Group’s sales of merchandise business model. |
SCHEDULE OF OTHER OPERATING INC
SCHEDULE OF OTHER OPERATING INCOME (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Other Income and Expenses [Abstract] | ||||
VAT-in super deduction and other tax returns | [1] | ¥ 518 | ¥ 2,369 | ¥ 2,323 |
Government grants | [2] | 13,123 | 15,110 | 48,180 |
Others | 1,257 | 4,120 | 3,913 | |
Total other operating income | ¥ 14,898 | ¥ 21,599 | ¥ 54,416 | |
[1]From 2019, in accordance with “the Announcement on Relevant Policies for Deepening the Value-added Tax Reform” and relevant government policies announced by the Ministry of Finance, the State Taxation Administration and the General Administration of Customs of China, one China VIE of the Company, as a consumer service company, is allowed to enjoy additional 10 |
SCHEDULE OF OTHER OPERATING I_2
SCHEDULE OF OTHER OPERATING INCOME (Details) (Parenthetical) | Dec. 31, 2022 |
Other Income and Expenses [Abstract] | |
Percent of VAT in super deduction | 10% |
SCHEDULE OF NON-OPERATING INCOM
SCHEDULE OF NON-OPERATING INCOME/(LOSS) NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Other Income and Expenses [Abstract] | ||||
Gain/(loss) on disposal of long-term investments and subsidiaries, net (Note 9) | ¥ (23) | ¥ (1,792) | ¥ 112,354 | |
Others | (2,382) | 3,864 | 555 | |
Total other non-operating income/(loss), net | $ (339) | ¥ (2,405) | ¥ 2,072 | ¥ 112,909 |
SCHEDULE OF FINANCIAL INCOME_(E
SCHEDULE OF FINANCIAL INCOME/(EXPENSE), NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Financial Incomeexpense Net | ||||
Interest income | ¥ 13,429 | ¥ 1,606 | ¥ 15,947 | |
Interest expense | (631) | (2,462) | (4,181) | |
Gains/(loss) from fair value changes of equity securities investments, net (Note 9) | (80,923) | (28,326) | 59,690 | |
Bank charges | (161) | (276) | (529) | |
Others | 8,060 | 15,102 | 9,134 | |
Total financial income/(expense), net | $ (8,483) | ¥ (60,226) | ¥ (14,356) | ¥ 80,061 |
SCHEDULE OF INCOME BEFORE INCOM
SCHEDULE OF INCOME BEFORE INCOME TAX, DOMESTIC AND FOREIGN (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income/(loss) from PRC entities | ¥ (83,575) | ¥ (113,848) | ¥ 244,163 |
(Loss)/income from overseas entities | (66,418) | 7,300 | (35,141) |
Total Income/(loss) before tax | ¥ (149,993) | ¥ (106,548) | ¥ 209,022 |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | ¥ 7,851 | ¥ 9,866 | ¥ 17,803 | |
Deferred income tax expense | 14,925 | 42,698 | ||
Total income tax expense | $ 1,106 | ¥ 7,851 | ¥ 24,791 | ¥ 60,501 |
SCHEDULE OF EFFECTIVE INCOME TA
SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION (Details) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Tax Disclosure [Abstract] | ||||
PRC Statutory income tax rate | 25% | 25% | 25% | |
Effect on tax rates in different tax jurisdiction | (6.00%) | (10.00%) | 5% | |
The effect of change in the tax rate of subsidiaries | (1.00%) | 4% | 0% | |
Non-deductible expenses | (1.00%) | (1.00%) | 1% | |
Additional deduction for research and development expenditures | 5% | 8% | (6.00%) | |
Share-based compensation | 0% | (4.00%) | 4% | |
Non-taxable income | 1% | 1% | (2.00%) | |
Permanent book-tax differences | (4.00%) | (3.00%) | 4% | |
Change in valuation allowance () | [1] | (24.00%) | (43.00%) | (2.00%) |
Effective tax rates | (5.00%) | (23.00%) | 29% | |
[1]Included the impact of the valuation allowance decrease due to disposal of subsidiaries and tax losses forfeiture in 2023. |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Net accumulated losses-carry forward | ¥ 140,351 | ¥ 130,370 | ||
Allowance for credit losses | 18,570 | 7,717 | ||
Gain or loss from changes in fair values | 12,841 | 1,142 | ||
Inventory write-downs | 1,836 | 1,348 | ||
Deferred membership program revenue | 31 | |||
Refund payable to members | 6 | |||
Others | 3,818 | 69 | ||
Less: valuation allowance | (173,529) | (140,189) | ¥ (96,489) | ¥ (156,150) |
Total deferred tax assets | 3,887 | 494 | ||
Deferred tax liabilities | ||||
Gain or loss from changes in fair values | 156 | |||
Others | 3,731 | 494 | ||
Total deferred tax liabilities | ¥ 3,887 | ¥ 494 |
SUMMARY OF VALUATION ALLOWANCE
SUMMARY OF VALUATION ALLOWANCE (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Income Tax Disclosure [Abstract] | ||||
Balance at beginning of the year | ¥ (140,189) | ¥ (96,489) | ¥ (156,150) | |
Changes of valuation allowance (1) | [1] | (33,340) | (43,700) | 59,661 |
Balance at end of the year | ¥ (173,529) | ¥ (140,189) | ¥ (96,489) | |
[1]Valuation allowances have been provided against deferred tax assets when the Group determines that it is more likely than not that the deferred tax assets will not be utilized in the future. In making such determination as of December 31, 2022 and 2023, the Group evaluates a variety of factors supporting the utilization of carry-forwards through a forecast of future taxable profits for each impacted entity within a specific tax jurisdiction, including: the Group’s entities’ operating history and forecast, accumulated deficit, existence of taxable temporary differences and reversal periods. As of December 31, 2022 and 2023, valuation allowances on a large part of deferred tax assets were provided because it was more likely than not that such portion of deferred tax will not be realized based on the Company’s estimate of future taxable incomes of all its subsidiaries. |
SUMMARY OF OPERATING LOSS CARRY
SUMMARY OF OPERATING LOSS CARRYFORWARDS (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 745,161 |
Operating Loss Carry Forwards Expiring 2024 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 277,140 |
Operating Loss Carry Forwards Expiring 2025 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 162,394 |
Operating Loss Carry Forwards Expiring 2026 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 20,002 |
Operating Loss Carry Forwards Expiring 2027 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | 145,181 |
Operating Loss Carry Forwards Expiring 2028 and Onwards [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 140,444 |
TAXATION (Details Narrative)
TAXATION (Details Narrative) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2018 | Dec. 31, 2008 | Jan. 01, 2008 | Mar. 16, 2007 | Dec. 31, 2023 HKD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Apr. 01, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||||||||
Percentage of income tax rate | 8.25% | |||||||||
Taxable income | $ | $ 2 | |||||||||
Percentage of profit tax remaining taxable income | 16.50% | |||||||||
Percentage of income tax rate | 25% | 25% | 25% | |||||||
Validity of preferential tax rate | 3 years | |||||||||
Deferred tax assets | ||||||||||
Deferred tax and other liabilities, noncurrent | ||||||||||
Tax losses carry forwards | 745,161,000 | |||||||||
Withholding Tax [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Deferred income tax liabilities, net | ¥ 0 | 0 | ||||||||
State Administration of Taxation, China [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Percentage of income tax rate | 25% | |||||||||
Preferential tax rate percentage | 15% | |||||||||
Percentage of research and development expenditure eligible for deduction | 175% | 150% | ||||||||
Additional deduction of research and development expenses percentage | 75% | 50% | ||||||||
State Administration of Taxation, China [Member] | Foreign Tax Authority [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Percentage of income tax rate | 25% | |||||||||
State Administration of Taxation, China [Member] | Zhejiang Jixiangecommerceco Ltd [Member] | Tax Year 2021 [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Preferential tax rate percentage | 15% | |||||||||
State Administration of Taxation, China [Member] | Other Entities [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Percentage of income tax rate | 25% | |||||||||
CN [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Tax losses carry forwards | ¥ 745,161,000 | |||||||||
Outside China [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Percentage of income tax dividends distributed | 10% | |||||||||
HK [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Percentage of tax rate withholding | 5% | |||||||||
HK [Member] | Other Investee [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Equity method investment, ownership percentage | 25% | 25% | ||||||||
Agricultural Products [Member] | CN [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Value added tax rate percent | 25% | 25% | 9% | |||||||
Other Products [Member] | CN [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Value added tax rate percent | 13% | |||||||||
Logistics Services [Member] | CN [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Value added tax rate percent | 9% | |||||||||
Service, Other [Member] | CN [Member] | ||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Value added tax rate percent | 6% |
ORDINARY SHARES (Details Narrat
ORDINARY SHARES (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||||
Jun. 20, 2023 | Aug. 25, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 04, 2019 | May 03, 2019 | Jan. 01, 2018 | Jan. 31, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 17, 2022 | Dec. 31, 2019 | Aug. 28, 2019 | Dec. 31, 2017 | Nov. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares authorized value | $ 50 | ||||||||||||||
Common stock shares authorized | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 | 500,000,000 | ||||||||||
Common stock par value | $ 0.000005 | $ 0.000005 | $ 0.0001 | ||||||||||||
Stock repurchase program, authorized amount | $ 20,000,000 | $ 20,000,000 | |||||||||||||
Oridinary shares description | the Company changed its ADS ratio from each ADS representing 10 Class A ordinary shares to each ADS representing 100 Class A ordinary shares | ||||||||||||||
2019 Share Repurchase Program [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Cumulative share repurchase | 40,463,770 | 40,076,270 | |||||||||||||
2019 Share Repurchase Program [Member] | Minimum [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Share price | $ 0.09 | $ 0.09 | |||||||||||||
2019 Share Repurchase Program [Member] | Maximum [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Share price | $ 0.70 | $ 0.70 | |||||||||||||
2020 Share Repurchase Program [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Stock repurchase program, authorized amount | $ 20,000,000 | ||||||||||||||
Cumulative share repurchase | 179,701,700 | ||||||||||||||
Stock repurchase program extended period | September 16, 2022 and up to March 15, 2023 | ||||||||||||||
Mrxiao Shanglue Founder And Ceo [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Conversion of stock, shares converted | 201,440,000 | ||||||||||||||
Common Class A [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares issued | 1,208,831,222 | 1,208,831,222 | 1,208,831,222 | 1,208,831,222 | |||||||||||
Common stock shares outstanding | 1,183,305,412 | 1,016,418,532 | 1,068,437,352 | 1,179,445,572 | |||||||||||
Common Class A [Member] | 2020 Share Repurchase Program [Member] | Minimum [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Share price | $ 0.07 | ||||||||||||||
Common Class A [Member] | 2020 Share Repurchase Program [Member] | Maximum [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Share price | $ 0.12 | ||||||||||||||
Common Class A [Member] | IPO [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Number of shares offered | 110,000,000 | ||||||||||||||
Common Class A [Member] | Over-Allotment Option [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock par value | $ 1.10 | ||||||||||||||
Options exercised | 2,174,470 | ||||||||||||||
Common Class A [Member] | Mrxiao Shanglue Founder And Ceo [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Conversion of stock, shares converted | 895,216,752 | ||||||||||||||
Common Class B [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock shares issued | 949,960,000 | 949,960,000 | 949,960,000 | 949,960,000 | |||||||||||
Common stock shares outstanding | 949,960,000 | 949,960,000 | 949,960,000 | ||||||||||||
Common Class B [Member] | Mrxiao Shanglue Founder And Ceo [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Conversion of stock, shares converted | 949,960,000 | ||||||||||||||
Common stock, voting rights | one share with ten votes | ||||||||||||||
American Depositary Shares [Member] | IPO [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Number of shares offered | 11,000,000 | ||||||||||||||
Common Stock [Member] | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||
Common stock par value | $ 0.000005 | ||||||||||||||
Common stock shares issued | 2,158,791,222 | 2,158,791,222 | 1 | ||||||||||||
Common stock shares outstanding | 2,133,265,412 | 2,129,405,572 | 1 | ||||||||||||
Stock issued during period stock split | 10,000,000,000 | ||||||||||||||
Stock split discription | 1 ordinary share was subdivided into 20 ordinary shares |
CONVERTIBLE REDEEMABLE PREFER_2
CONVERTIBLE REDEEMABLE PREFERRED SHARES (Details Narrative) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||||||
Jun. 30, 2018 USD ($) shares | Jun. 30, 2018 CNY (¥) shares | Feb. 28, 2018 USD ($) $ / shares shares | Feb. 28, 2018 CNY (¥) shares | Jan. 31, 2017 CNY (¥) shares | Nov. 30, 2016 USD ($) | Nov. 30, 2016 CNY (¥) | Jul. 31, 2015 CNY (¥) shares | Nov. 30, 2018 $ / shares | Jun. 30, 2018 CNY (¥) shares | |
Series Seed Capital Contribution [Member] | ||||||||||
Capital injuction | ¥ 50,000 | |||||||||
Stock issuance costs | ¥ 1,000 | |||||||||
Series A Beneficiary Owners [Member] | ||||||||||
Stock issuance costs | ¥ 8,095 | |||||||||
Proceeds from warrant exercise | ¥ 644 | |||||||||
Finders commission | 6,509 | |||||||||
Series A Beneficiary Owners [Member] | Warrant [Member] | ||||||||||
Fair value of warrant liability | ¥ 1,754 | |||||||||
Series A Beneficiary Owners [Member] | Contribution One [Member] | ||||||||||
Capital injuction | $ 20,000 | 33,160 | ||||||||
Series A Beneficiary Owners [Member] | Contribution Two [Member] | ||||||||||
Capital injuction | ¥ 138,532 | |||||||||
Series Seed Preferred Shares [Member] | ||||||||||
Stock issued during period | shares | 373,000,000 | |||||||||
Series A Preferred Stock [Member] | ||||||||||
Stock issued during period | shares | 116,600,000 | 116,600,000 | ||||||||
Preferred stock, shares issued | shares | 272,600,000 | |||||||||
Share issue price | $ / shares | $ 0.000005 | |||||||||
Series B Preferred Stock [Member] | ||||||||||
Stock issued during period | shares | 1,108,033 | 1,108,033 | 110,803,324 | 110,803,324 | ||||||
Stock issuance costs | ¥ 14,062 | |||||||||
Finders commission | $ 2,000 | 12,600 | ||||||||
Proceeds from issue of preferred stock | $ 100,000 | ¥ 630,010 | ||||||||
Finders commission payment percent | 50% | 50% | ||||||||
Finders commission payment value | $ | $ 1,000 | |||||||||
Series B Plus Preferred Shares [Member] | ||||||||||
Stock issuance costs | ¥ 5,867 | |||||||||
Preferred stock, shares issued | shares | 21,105,395 | 21,105,395 | ||||||||
Preferred stock shares authorized value | $ 20,000 | ¥ 128,416 | ||||||||
Preferred Shares [Member] | ||||||||||
Preferred shares par value | $ / shares | $ 0.000005 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) | 12 Months Ended | ||||
Dec. 31, 2023 $ / shares | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2022 $ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |||||
Number of shares outstanding, beginning balance | 61,091,820 | 61,930,440 | |||
Weighted average exercise price, outstanding | $ / shares | $ 0.22 | $ 0.21 | |||
Weighted average remaining contractual term, outstanding | 3 months 7 days | 10 months 20 days | 1 year 8 months 23 days | ||
Aggregate intrinsic value, outstanding beginning balance | ¥ | |||||
Number of shares, granted | |||||
Weighted average exercise price, granted | ¥ / shares | ¥ 0.23 | ||||
Number of shares, forfeited | (173,870) | (64,980) | |||
Weighted average exercise price, forfeited | ¥ / shares | ¥ 0.20 | ||||
Number of shares, Exercised | (773,640) | ||||
Weighted average exercise price, exercised | ¥ / shares | ¥ 0.09 | ||||
Number of shares, Expired | 46,562,380 | ||||
Weighted average exercise price, exercised | ¥ / shares | ¥ 0.09 | ||||
Aggregate intrinsic value, outstanding beginning balance | ¥ | |||||
Number of shares, exercised | 773,640 | ||||
Number of shares, expired | (46,562,380) | ||||
Number of shares outstanding, ending balance | 14,355,570 | 61,091,820 | 61,930,440 | ||
Weighted average exercise price, outstanding | $ / shares | $ 0.61 | $ 0.22 | $ 0.21 | ||
Aggregate intrinsic value, outstanding ending balance | ¥ | |||||
Number of shares, Vested and expected to vest | 14,355,570 | ||||
Number of shares, Exercisable | 14,355,570,000 |
SCHEDULE OF SERVICE BASED RSU (
SCHEDULE OF SERVICE BASED RSU (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of RSUs, Unvested | 24,922,100 | 45,704,350 |
Weighted average grant date fair value, Unvested | $ 0.45 | $ 0.45 |
Number of RSUs, Granted | 2,900,000 | 9,850,000 |
Weighted average grant date fair value, Granted | $ 0.02 | $ 0.63 |
Number of RSUs, Vested | (1,587,950) | (10,326,250) |
Number of RSUs, Forfeited | (11,609,400) | (20,306,000) |
Number of RSUs, Unvested | 14,624,750 | 24,922,100 |
Weighted average grant date fair value, Unvested | $ 0.34 | $ 0.45 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) ¥ in Thousands | 12 Months Ended | |||||||||||||||||||
Jul. 01, 2023 shares | Jun. 30, 2023 shares | Feb. 01, 2023 shares | Aug. 01, 2022 shares | Jan. 01, 2022 shares | Feb. 01, 2021 shares | Jan. 01, 2021 shares | Jul. 01, 2020 shares | Jan. 01, 2020 shares | May 03, 2019 shares | Jan. 31, 2019 shares | Nov. 28, 2018 shares | Dec. 19, 2017 shares | Dec. 31, 2023 CNY (¥) $ / shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) $ / shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2019 shares | Mar. 31, 2019 shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Options grants in period | ||||||||||||||||||||
Restricted stock units grants in period | 2,900,000 | 9,850,000 | ||||||||||||||||||
Stock option, fair value of underlying stock | $ / shares | $ 0.71 | $ 0.08 | ||||||||||||||||||
Unrecognized compensation expense | ¥ | $ 1 | ¥ 1 | $ 616 | ¥ 616 | ||||||||||||||||
Weighted average period recognized | 29 days | 4 months 24 days | ||||||||||||||||||
Restricted stock units, vested | 1,587,950 | 10,326,250 | ||||||||||||||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Allocated share based compensation expense | ¥ | ¥ 5,628 | ¥ 1,828 | ¥ 20,782 | |||||||||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Allocated share based compensation expense | ¥ | ¥ 4,743 | ¥ 28,322 | ¥ 35,128 | |||||||||||||||||
Weighted average period recognized | 1 year 2 months 1 day | 1 year 10 months 13 days | ||||||||||||||||||
Unrecognized compensation expense | ¥ | $ 3,489 | ¥ 3,489 | $ 14,592 | ¥ 14,592 | ||||||||||||||||
Directors And Employees [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Options grants in period | 12,021,500 | 4,968,000 | 5,540,000 | 73,225,200 | ||||||||||||||||
Restricted stock units grants in period | 14,925,000 | 19,800,000 | 5,000,000 | |||||||||||||||||
Directors And Employees [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Restricted stock units grants in period | 13,890,000 | |||||||||||||||||||
Independent Directors [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Options grants in period | 720,000 | |||||||||||||||||||
Nonemployee [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Options grants in period | 10,409,050 | |||||||||||||||||||
Nonemployee [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Restricted stock units grants in period | 3,332,040 | |||||||||||||||||||
External Consultants [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Restricted stock units grants in period | 400,000 | 8,690,000 | 29,170,000 | 356,210 | ||||||||||||||||
Employees [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Restricted stock units grants in period | 2,500,000 | 1,160,000 | 26,818,000 | 49,964,000 | ||||||||||||||||
2019 [Member] | ||||||||||||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||||||||||||
Number of shares authorized | 227,401,861 | |||||||||||||||||||
Shares reserved for issuance | 227,401,861 |
SCHEDULE OF FAIR VALUE MEASUREM
SCHEDULE OF FAIR VALUE MEASUREMENT OF GROUP ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | ¥ 142,357 | |
Equity securities with readily determinable fair value | ¥ 37,650 | 114,843 |
Short-Term Investments [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 265,826 | 554,217 |
Short-Term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 228,176 | 439,374 |
Short-Term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 37,650 | 114,843 |
Short-Term Investments [Member] | Bank Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 142,357 | |
Short-Term Investments [Member] | Wealth Management Products [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 69,646 | |
Short-Term Investments [Member] | Wealth Management Products [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 69,646 | |
Short-Term Investments [Member] | Debt Securities For Trading [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 7,195 | |
Short-Term Investments [Member] | Debt Securities For Trading [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | 7,195 | |
Other Long-Term Investments [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities with readily determinable fair value | 37,650 | 114,843 |
Equity securities accounted for under alternative measurement | 220,981 | 227,371 |
Other Long-Term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities accounted for under alternative measurement | 220,981 | 227,371 |
Other Long-Term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities with readily determinable fair value | ¥ 37,650 | ¥ 114,843 |
SCHEDULE OF BASIC AND DILUTED N
SCHEDULE OF BASIC AND DILUTED NET LOSS PER SHARE (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator: | ||||
Net income/(loss) attributable to YUNJI INC’s ordinary shareholders | $ (23,259) | ¥ (165,129) | ¥ (138,173) | ¥ 131,966 |
Denominator: | ||||
-Weighted average ordinary shares outstanding | 1,971,108,505 | 1,971,108,505 | 2,088,319,721 | 2,139,963,573 |
Dilutive effect of share options | 7,242,017 | |||
Denominator for diluted earnings per ordinary share | 1,971,108,505 | 1,971,108,505 | 2,088,319,721 | 2,147,205,590 |
-Basic | (per share) | $ (0.01) | ¥ (0.08) | ¥ (0.07) | ¥ 0.06 |
-Diluted | (per share) | $ (0.01) | ¥ (0.08) | ¥ (0.07) | ¥ 0.06 |
SCHEDULE OF MAJOR RELATED PARTI
SCHEDULE OF MAJOR RELATED PARTIES AND THEIR RELATIONSHIPS WITH GROUP (Details) | 12 Months Ended | |
Dec. 31, 2023 | ||
Small Ye Group [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | Controlled by Mr. Xiao Shanglue, Founder and CEO of the Group | |
Tianshi [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2017) | [1] |
Weixin [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2018) | |
Bixin [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2019) | |
Yunnong [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2019) | |
Jimi [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2020) | |
Jibi [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2020) | |
Hangzhou Xingsheng Brand Marketing Management Co Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2020) | [1] |
Yuncheng [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2020) | [1] |
Huaji [Member] | ||
Related Party Transaction [Line Items] | ||
Nature of relationships | An associate of the Group (incorporated in 2020) | [1] |
[1]The investments in these associates were disposed by the Group in 2022 and 2023. |
SCHEDULE OF RELATED PARTY BALAN
SCHEDULE OF RELATED PARTY BALANCES AND TRANSACTIONS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) |
Jimi [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties, current | ¥ 1,134 | ¥ 67 | |
Due to related parties, current | 125 | 125 | |
Other [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties, current | 227 | 135 | |
Due to related parties, current | 338 | 595 | |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties, current | $ 192 | 1,361 | 202 |
Due to related parties, current | $ 498 | 3,535 | 10,608 |
Bixin [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, current | 1,132 | 376 | |
Jibi [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, current | 809 | 618 | |
Small Ye Group [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, current | 691 | 691 | |
Yunnong [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, current | 351 | 728 | |
Weixin [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, current | 89 | 5,382 | |
Xingsheng [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, current | 1,209 | ||
Tianshi [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties, current | ¥ 884 |
SCHEDULE OF RELATED PARTY TRANS
SCHEDULE OF RELATED PARTY TRANSACTIONS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | ¥ 22,596 | ¥ 21,510 | ¥ 92,115 |
Jimi [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | 16,353 | 7,572 | 17,519 |
Tianshi [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | 2,793 | 2,722 | 11,256 |
Bixin [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | 1,852 | 3,328 | 7,637 |
Yunnong [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | 1,286 | 4,301 | |
Weixin [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | 32 | 14,508 | |
Yuncheng [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | 13,147 | ||
Xingsheng [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | 7,384 | 11,768 | |
Huaji [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | 4,265 | ||
Other [Member] | |||
Related Party Transaction [Line Items] | |||
purchases of merchandise from related parties | ¥ 312 | ¥ 472 | ¥ 7,714 |
SCHEDULE OF MARKETPLACE SERVICE
SCHEDULE OF MARKETPLACE SERVICE PROVIDE TO RELATED PARTIES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Jimi [Member] | |||
Related Party Transaction [Line Items] | |||
Market place service provided to related parties | ¥ 1,501 | ¥ 1,699 | ¥ 5,637 |
Other goods and services provided to related parties | 56 | 131 | 313 |
Bixin [Member] | |||
Related Party Transaction [Line Items] | |||
Market place service provided to related parties | 1,075 | 1,234 | 2,322 |
Other goods and services provided to related parties | 172 | 3 | |
Yuncheng [Member] | |||
Related Party Transaction [Line Items] | |||
Market place service provided to related parties | 3,309 | ||
Other goods and services provided to related parties | 208 | ||
Other [Member] | |||
Related Party Transaction [Line Items] | |||
Market place service provided to related parties | 80 | 172 | 815 |
Other goods and services provided to related parties | 41 | 21 | 18 |
Related Party [Member] | |||
Related Party Transaction [Line Items] | |||
Market place service provided to related parties | 2,656 | 3,105 | 12,083 |
Other goods and services provided to related parties | 314 | 823 | 539 |
Tianshi [Member] | |||
Related Party Transaction [Line Items] | |||
Other goods and services provided to related parties | 45 | 114 | |
Xingsheng [Member] | |||
Related Party Transaction [Line Items] | |||
Other goods and services provided to related parties | ¥ 554 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
Commitments and Contingencies Disclosure [Abstract] | |
Short-term lease payments | ¥ 580 |
Capital commitments outstanding | 13,210 |
Legal settlement | ¥ 23,100 |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details Narrative) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statutory reserves funds, description | These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires an annual appropriation of 10% of after tax profit (as determined under accounting principles generally accepted in the PRC at each year-end) until the accumulative amount of such reserve fund reaches 50% of a company’s registered capital, the other fund appropriations are at the subsidiaries’ discretion. These reserve funds can only be used for specific purposes of enterprise expansion and staff bonus and welfare and are not distributable as cash dividends | ||
Appropriations to the statutory reserve | ¥ 176 | ¥ 2,059 | ¥ 1,395 |
PRC Subsidiaries [Member] | |||
Net assets | ¥ 639,397 | ||
Percentage of consolidated net assets | 54% |
SUMMARY OF CONDENSED BALANCE SH
SUMMARY OF CONDENSED BALANCE SHEETS PARENT COMPANY (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Current assets: | |||||
Cash and cash equivalents | $ 72,894 | ¥ 517,542 | ¥ 414,634 | ¥ 567,204 | |
Short-term investment | 1,013 | 7,195 | 212,003 | ||
Prepaid expenses and other current assets | 18,908 | 134,247 | 362,065 | ||
Total current assets | 113,888 | 808,600 | 1,212,513 | ||
Non-current assets: | |||||
Long-term investments | 51,291 | 364,159 | 414,325 | ||
Assets, Noncurrent | 104,958 | 745,184 | 679,898 | ||
Total assets | 218,846 | 1,553,784 | 1,892,411 | ||
Current liabilities | |||||
Other payables and accruals | 15,381 | 109,200 | 145,527 | ||
Liabilities | 51,084 | 362,689 | 536,511 | ||
Shareholders’ equity | |||||
Ordinary shares (US$0.000005 par value 20,000,000,000 shares authorized as of December 31, 2022 and 2023; 1,208,831,222 Class A ordinary shares and 949,960,000 Class B ordinary shares issued as of December 31, 2022 and 2023; 1,068,437,352 and 1,016,418,532 Class A ordinary shares and 949,960,000 and 949,960,000 Class B ordinary shares outstanding as of December 31, 2022 and 2023, respectively) | 10 | 70 | 70 | ||
Additional paid-in capital | 1,032,223 | 7,328,680 | 7,333,144 | ||
Accumulated other comprehensive income | (12,013) | (85,291) | (63,113) | ||
Less: Treasury stock (140,393,870 and 192,412,690 shares as of December 31, 2022 and 2023, respectively) | (16,353) | (116,108) | (98,709) | ||
Accumulated deficit | (862,543) | (6,123,971) | (5,958,666) | ||
Total shareholders' equity | 167,762 | 1,191,095 | 1,355,900 | ¥ 1,478,515 | ¥ 1,314,868 |
Total liabilities and shareholders' equity | 218,846 | 1,553,784 | 1,892,411 | ||
Related Party [Member] | |||||
Current assets: | |||||
Amounts due from the group companies | $ 192 | 1,361 | 202 | ||
Parent Company [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 64,070 | 65,363 | |||
Short-term investment | 7,195 | 70,125 | |||
Prepaid expenses and other current assets | 1,059 | 1,516 | |||
Total current assets | 268,241 | 298,128 | |||
Non-current assets: | |||||
Long-term investments | 39,500 | 39,817 | |||
Investment in subsidiaries and VIEs | 883,681 | 1,020,937 | |||
Assets, Noncurrent | 923,181 | 1,060,754 | |||
Total assets | 1,191,422 | 1,358,882 | |||
Current liabilities | |||||
Other payables and accruals | 1,206 | 3,852 | |||
Liabilities | 1,206 | 3,852 | |||
Shareholders’ equity | |||||
Ordinary shares (US$0.000005 par value 20,000,000,000 shares authorized as of December 31, 2022 and 2023; 1,208,831,222 Class A ordinary shares and 949,960,000 Class B ordinary shares issued as of December 31, 2022 and 2023; 1,068,437,352 and 1,016,418,532 Class A ordinary shares and 949,960,000 and 949,960,000 Class B ordinary shares outstanding as of December 31, 2022 and 2023, respectively) | 70 | 70 | |||
Additional paid-in capital | 7,327,581 | 7,332,098 | |||
Accumulated other comprehensive income | (116,171) | (91,498) | |||
Less: Treasury stock (140,393,870 and 192,412,690 shares as of December 31, 2022 and 2023, respectively) | (116,108) | (98,709) | |||
Accumulated deficit | (6,137,498) | (5,969,927) | |||
Total shareholders' equity | 1,190,216 | 1,355,030 | |||
Total liabilities and shareholders' equity | 1,191,422 | 1,358,882 | |||
Parent Company [Member] | Related Party [Member] | |||||
Current assets: | |||||
Amounts due from the group companies | ¥ 195,917 | ¥ 161,124 |
SUMMARY OF CONDENSED BALANCE _2
SUMMARY OF CONDENSED BALANCE SHEETS PARENT COMPANY (Details) (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2017 |
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock, par value | $ 0.000005 | $ 0.000005 | $ 0.0001 | ||
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 | 500,000,000 |
Treasury stock, shares | 192,412,690,000 | 140,393,870,000 | |||
Parent Company [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock, par value | $ 0.000005 | $ 0.000005 | |||
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 | |||
Treasury stock, shares | 192,412,690 | 140,393,870 | |||
Parent Company [Member] | Common Class A [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock, shares, issued | 1,208,831,222 | 1,208,831,222 | |||
Common stock, shares, outstanding | 1,016,418,532 | 1,068,437,352 | |||
Parent Company [Member] | Common Class B [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock, shares, issued | 949,960,000 | 949,960,000 | |||
Common stock, shares, outstanding | 949,960,000 | 949,960,000 |
SUMMARY OF CONDENSED STATEMENTS
SUMMARY OF CONDENSED STATEMENTS OF COMPREHENSIVE OR LOSS OF THE PARENT COMPANY (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Operation expense | ||||
Sales and marketing | $ 17,048 | ¥ 121,039 | ¥ 214,783 | ¥ 296,049 |
General and administrative | 17,036 | 120,951 | 145,857 | 226,110 |
Total operating expenses | 103,625 | 735,726 | 1,254,280 | 2,192,425 |
Share of income/(loss) of subsidiaries and VIEs | (1,025) | (7,276) | (7,051) | (16,237) |
Foreign exchange loss | (950) | (6,743) | (15,697) | (1,300) |
Other non-operating income/(expense), net | (339) | (2,405) | 2,072 | 112,909 |
Total Income/(loss) before tax | (149,993) | (106,548) | 209,022 | |
Net income/(loss) | (23,258) | (165,120) | (138,390) | 132,284 |
Net income/(loss) attributable to ordinary shareholders | (23,259) | (165,129) | (138,173) | 131,966 |
Other comprehensive income | ||||
Foreign currency translation adjustment | 3,124 | 22,178 | 78,777 | (25,116) |
Total comprehensive income/(loss) attributable to YUNJI INC. | $ (20,135) | (142,951) | (59,396) | 106,850 |
Parent Company [Member] | ||||
Operation expense | ||||
Sales and marketing | (2,052) | |||
General and administrative | (8,557) | (10,706) | (17,632) | |
Total operating expenses | (8,557) | (10,706) | (19,684) | |
Share of income/(loss) of subsidiaries and VIEs | (151,117) | (115,080) | 167,444 | |
Financial expense, net | (518) | (12,283) | (15,883) | |
Foreign exchange loss | (134) | (466) | ||
Other non-operating income/(expense), net | (4,232) | 30 | 555 | |
Total Income/(loss) before tax | (164,424) | (138,173) | 131,966 | |
Equity in loss of affiliates, net of tax | (705) | |||
Net income/(loss) | (165,129) | (138,173) | 131,966 | |
Net income/(loss) attributable to ordinary shareholders | (165,129) | (138,173) | 131,966 | |
Other comprehensive income | ||||
Foreign currency translation adjustment | 24,673 | 134,143 | 35,433 | |
Total comprehensive income/(loss) attributable to YUNJI INC. | ¥ (140,456) | ¥ (4,030) | ¥ 167,399 |
SUMMARY OF CONDENSED STATEMEN_2
SUMMARY OF CONDENSED STATEMENTS OF CASH FLOWS OF THE PARENT COMPANY (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash used in operating activities | $ (26,516) | ¥ (188,261) | ¥ (216,822) | ¥ (25,991) |
Net cash generated from investing activities | 41,414 | 294,035 | 92,565 | (513,795) |
Net cash generated from/(used in) financing activities | (3,568) | (25,334) | (94,555) | (463) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,060 | 7,528 | 45,823 | (19,763) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | 12,390 | 87,968 | (172,989) | (560,012) |
Cash, cash equivalents and restricted cash at beginning of the year | 64,331 | 456,743 | 629,732 | 1,189,744 |
Cash, cash equivalents and restricted cash at the end of the year | $ 76,721 | 544,711 | 456,743 | 629,732 |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash used in operating activities | (8,557) | (9,075) | (23,226) | |
Net cash generated from investing activities | 31,720 | 154,552 | 29,919 | |
Net cash generated from/(used in) financing activities | (25,334) | (94,752) | 788 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 878 | 5,960 | (2,457) | |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (1,293) | 56,685 | 5,024 | |
Cash, cash equivalents and restricted cash at beginning of the year | 65,363 | 8,678 | 3,654 | |
Cash, cash equivalents and restricted cash at the end of the year | ¥ 64,070 | ¥ 65,363 | ¥ 8,678 |