YJ - Earnings call transcript Q4 2023

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Operator

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's Fourth Quarter 2023 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Yeqing Cui, Senior Financial Director; and Ms. Kaye Liu, Investor Relations Director of the company.

conference being this reminder, a call recorded. is As

hand over Kaye to I ma'am. IRD would first conference to like ahead, go Ms. Now our the speaker Yunji. Please of Liu, today,

Kaye Liu

our everyone. fourth Hello, to quarter earnings call. XXXX Welcome

factors operating this on Before will statements and our of unknown Private Litigation current as contain and of XXXX of other relate market call Reform or we risks, involve expectations be can and meaning events will, note expressions. continue such Act the industry. These conditions that forward-looking to please uncertainties Securities Yunji’s identified start, that known that anticipate, other terminologies within statements similar forward-looking and are by current based expect,

our filed latest U.S. SEC. detailed the document and a For of to these with discussion risks refer uncertainties, please

undertake on details that by filing qualified and obligation update over the expressly this are statements Yunji. will and of the and based SEC. law. With entirely with Shanglue as forward-looking under any I we factors to on of today expect of risk Yunji call assumptions Any Chairman are these Xiao, as now company to that, cautionary turn statements, applicable make required CEO not do statements

Shanglue Xiao

XXXX Hello, earnings [Interpreted] to everyone. Language] Welcome [Foreign call. Yunji's

and hunting particularly a streaming Language] relatively fostering season, e-commerce consumers. quarter's the price platforms [Foreign to intense alone in prevailing adopted among strategies bargain the and During live [Interpreted] peak XXXX Major in competition. trend fourth low-price the e-commerce promotion mindset market was

e-commerce However, platform. not Yunji is really an

can brand over for we users products our service times relying return our low long-term was of with value also decision-making wait We on the deliver as provider. We a as building identity which understand strategies, in and a well are in the The rates users. to cost-effective sales minimizing brand and low time. pricing repercussions lower

order stable market Our commitment maintains that low focus on prices. curated amidst average a product heavily the ensures even value a selection Yunji to in

is health. beauty value saying our developed average The food, of highly around [Interpreted] stability intrinsically Language] product and linked capabilities, our order for [Foreign the love centered to of

We have cost-effective range label private a of developed products.

the not of We expanded [indiscernible] also only successfully have our categories, existing medicinal lineup upgraded products. but

we categories span the that have incorporate of these have leveraging products popularity in multiple many user such resonate successful ingredients, and ways functionality probiotics. existing active product introduced development our Building popular ingredients that while key a of with strongly variety as harness we and identified trials base to ingredients the and across new sales, user different these collagen of years performed enhance product feedback, Over and of on increased ingredients. these innovatively

Our new of have base and natural ingredients. healthier the foods technology terms offering ingredients draw history to to These renowned advanced to such the herbs user easier Chinese And we years In We doing products [Interpreted] loyal to that a Yunji loyal aim offerings we users fostering our to At so, cultivate deeper supplementing develop individual by been a our are absorb. digest carefully over high-quality of use embraced brand. [Foreign the our our processed using committed generally carefully Language] selected [indiscernible]. to appreciate entire is trust brand of We will niche the upon who ecosystem, sell feedback. user produce ingredients. in that and users. we warmly as Yunji, in are dendrobium X,XXX Chinese are medicinal average

to terms we enhance drive of and the our the and users ingredients marketing, the service our ensuring sales year [Interpreted] and link a between In mind. [Foreign customer peace to that with consume them [indiscernible] quality exceptional Over recognize of sales. Language] of products, past strong powerful authenticate service can confidence and performance

explore of users model. and number XX-day can brand via share healthcare a product-related we our purchasing the service one-on-one tracking to our Alongside support. Furthermore, unveiled convenient a products, we allows with of product, professional During March, comprehensive managers material, program, origins. also a products they upgrade. product more first-hand and training image a rolled mini-program. cost of we out managers to include committed service have then trace services novel improvement new Upon can access to product of these as which integrated our This range in user through gain management generate part invited are sales Language] We them technical and communities. [Foreign a personalized body continued our online Yunji's experience still to sales [Interpreted] which

launching. were Our on that products healthcare RMB million XX new responding to surpassing with sales

merchant customer basic service, [Foreign daily third-party When customer comes [Interpreted] service service policy our we internal optimization. focus it management, Language] to and training

satisfaction. [Foreign also trend new follow-ups and significant improve Language] are regular [Interpreted] XXXX, ways a apply having ensure exploring online customer conduct customer overall was AI in to in -- and and We our we services operations. to

and advanced And more to capabilities During call now significantly. handling integrate customer a the basic tasks from functions, evolved support service year, managers. chatbots center we our range into routine service of for AI

example, needs intake. daily now calorie users regarding XX-day management can nutritional and service their our For body image managers with of program consult

our and for health recommended summary, insightful intake personalized our Language] AI informed real support calorie accurately strategic XXXX. similarly service Our in consultants advice. [Foreign time an and and then managers by reflection rapidly [Interpreted] That provide calculating concludes

image director committed selection, to enhancing further avenues brand marketing to our remain and to With Cui, ensuring the exploring financial senior results. we brand. [Foreign of will go our product the through I diverse strategy product over that, curative [Interpreted] Yeqing Language] go cost actively to elevate effectiveness, financial forward, Moving Yunji

Yeqing Cui

Okay. Thank everyone. Hello, you, Shanglue.

remarks in and that are on and percentage all changes go noted. all calculation I started the results, unless, a terms otherwise, year-over-year basis please Before the through our RMB note following are in financial numbers

operations remained stable, fourth core relatively our XXXX, continue we process. the our quarter reinforce During of to and operational

flow. generate inventory categories Our a maintain on monitoring actively or management should a also requirement approach levels. focus weekly allowed monthly Meanwhile, cash flow only are to stable optimize efficient not on and management. profit. to we but more various utilization, actively asset's pursuing gross cash us inventory optimal strategic This practice management, manages ensure basis We product our our a stock to effectively

were creation changes, our a look was of resulted RMB product ago. margin at towards a Despite range our XXX optimization and private coupled from gross due on financials. relatively merchant to customer solid refinement million the at product from our sales. our close across short-term XX.X%. XXX the take to with our Now RMB loyalty the XX driven RMB labels a supplier network million, all our compared RMB marketplace business Revenues were These categories. This This our these million. Total sustained in were and revenues remained to ongoing merchandise and by strategy. impact effective let's sales were revenues year of million XXX changes primarily

were from XX million increase for Now structure credit was and expense logistics This expense, let's XXX ago. as million same member a expense. a were was and to XXXX. year RMB promotion loss. Total year million warehousing due a take Fulfillment a year and the administrative with X.XX XX due structure from from million diluted Technology ago. in business loss were reduction a million personal quarter shareholders RMB were partly a compared to loss marketing offset compared million was service expense staffing due cost. General from a RMB decreased attributable The expense operating X.XX reduced ago million RMB compared optimization period a the personnel a million was result a of compared XX to by in the settlement and charged RMB RMB share-based XXX platform. Sales fee stemming compensation year a year of of look decline personnel million operating staffing RMB fourth million XX merchandise XX.X compared sales, decrease RMB as a to million and million a decrease was RMB ago. RMB share to RMB in This RMB XX content Loss was RMB in This with server XX and was reduction net in million compared primarily XX decrease cost expense. net RMB a in to to expense a fee XX by and ago. to adjusted management ordinary and costs compared same million RMB and period expense, of primarily million ago. Basic structure ago. driven optimization mainly were operations XX at of XX refinement RMB year XX.X XX in our expense to result lower about to to XXXX. allowance per while a million decrease cost loss an RMB year third-party by mainly staffing in a reduced XX RMB the compared result payment in the Net

to liquidity. Turning the

million short-term had compared and of we equivalents, in of cash balance on investments XXXX, sheet XXXX. our a cash restricted December As of XX, RMB million December as XXX and RMB XXX cash total to

Our liquid debt and to any sheet. assets do loans cover our were our payable or sufficient not on we bank long-term hold balance obligations,

long-term working fourth dedicated towards our support In smart the taking our objectives. addition, of managing better we our to the summary, our capital strides and making strategic most of are to us significant assets quarter operations. In saw

inventory to our to to effort effective management, progress. key asset system, sustainable our and ongoing management Our with coupled refine commitment this were

ability. continuously our our thereby our adaptable Looking and on will ahead, efficiencies, ensuring enhancing resilience remain focus company's

our on the now Our for are remarks questions. challenges evolving strategies today. we take ready opportunities prepared capitalize environment. This equip us to future effectively economical concludes control the and in Operator, to

Operator

with Ethan question Our comes from Instructions] China. Yu Trust [Operator First first

Ethan Yu

you Language] customer mention [Foreign I just service. heard

in all a We no have these remote have performance? that What do Will free returns, X-day months, policies are platforms this which areas, of launched have policies consumers? e-commerce of as think you such observed cetera. strategy et impact major any our towards biased new shipping recent on user series in

Shanglue Xiao

[Interpreted] consumption products issue nature the and This Language] evolves user of habits. our [Foreign

based label the maintained and First And that for X.X specific your sales cannot consumption behavior be -- platform, of of products with always customer especially shipping. consumption. Yunji, selling has free be a loose a good RMB Yunji's all, point to policy. on we user's imposed private and merchandise cannot believe products be a

is from our cost to to sufficient and our is effectiveness. offering are is user that unique sales repurchase However, what quality attracts consumers ultimately inseparable low loose compared very other which important, education. platforms, product believe rate We refund but

in remote to value average we order expenses. Our areas. loyal cover And many users our also is have customer enough management

Operator

As Instructions] this there back conference hand no management to questions for closing the at [Operator the I would like time, further to are remarks.

Kaye Liu

Please any look us quarter. have joining today. do for with talking contact not if us to we next you hesitate further you Bye. and to questions, you Thank forward

Operator

is you for Thank now concluded. conference This attending.

an on the You transcript marked by this interpreter may now [Interpreted] live that are were of disconnect. [Portions present spoken call.]

Yunji (YJ) 21 Mar 242023 Q4 Earnings call transcript