YJ - Earnings call transcript Q3 2024

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Operator

Good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's Third Quarter 2024 Earnings Conference Call. With us today are Ms. Shanglue Xiao, Chairman and Chief Executive Officer; Mr. Yeqing Cui, Senior Financial Director; and Ms. Director company. Relations Investor Liu, of the Kaye

As this call recorded. is being a reminder,

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

Kaye Liu

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

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

and of today our under risks refer as and the on U.S. the these qualified please of cautionary make that the with with based entirely expect company's discussion to latest filed by are risk Any expressly law. this uncertainties, to Yunji required forward-looking not as SEC. statements obligation undertake assumptions details statements on we filings update any of applicable and a For are SEC. does factors document statements, call detailed

to With of that, will Shanglue now Xiao, over I Chairman CEO and turn Yunji.

Shanglue Xiao

with a an R&D our Hello, our ground diversification that Call. [Foreign and space. this This is Center. in training, property in center together a the and XX of [Interpreted] In and than our expanding attractive broke development growth. the [Foreign of strategic Language] corporate our represents with Language] at our and the secured one XX-year as vision future. company's office start trend, quarter in floor we are [Interpreted] the brands, heart marketing, Third a culture and operational aligns strategy headquarters, economic Earnings It second for Yunji's the just and as on our technology an health position for this located valuation be zone, brings integrated teams wellness milestone significant pillar strengthen health in serve strategically incubator environment. [Foreign while everyone, strategy. We under roof. The to which is to will Language] and beauty November Yunji embodying an wellness the more designed today's we global decision [Interpreted] to facility welcome key campus me our Quarter reinforcing market canvas XXXX line of our returns new to our with So let new asset On Innovatlonal optimize dynamic X, year,

particularly Our access to food healthy vision democratize to living, is space. in the organic

to premium affordable organic While we've these our without products come more traditionally procurement leveraged compromising expertise on make tag, with quality. price products

traveled as our nationwide to by authentic topnotch true for to traceability, and experience and health ensuring discover chain, eyes has team practices connect Our acting assurance. supply with genuine consumers

Additionally, feedback users. certification. we've certified system, health garnered [proprietarizing] have which established positive a receive initiatives includes of These they certification robust quality the inspections even after from control process products through our random our

accumulated million label has RMB sales have brand, platform the our mouth offline this standardized Suye, XX the replicated We've November, XX [Interpreted] Our medicine for into customers [Interpreted] We've location who successful arena. year private purchases. [Foreign the July, eagerly launched significant [autumn become each our we to offline our tap our favorite family October. [Foreign traditional on opening return have us word successfully year. our their model with through referrals in aged celebrated in example, pairs many parents In first For new expansion. XXX also has exceeded Language] featuring in system. moon in to October a In offline This XXth for Language] ] of growth the business store, make second from progress initiative the helped Chinese beauty made practices. demographic our

our We excited consistently high-end care launch our series. upcoming technology accounting top with advancement products the segment, fast-moving we global Language] within product ourselves infrastructure premier anti-aging recovery are outstanding eye brands front, care of [Interpreted] in lie and specialized vital expansion marks industry. particularly modern age about On for requires in where The the big is eye data our digitalization consumer a lineup. [Foreign Building effective strategy. another significant marketing goods release

treating forward the platform digital an tools increasing with support We in innovative resources are pushing sharing that public by the on AI of platforms. powered of development

drive looking improving continue Our So customer sharing lower educational which AI reliability. [Foreign operational treatments, we Language] and service, core to while hand families. With greater enhance service generating Cui, to that, Director, on materials helps results. it over will Chinese the to Financial for Senior Mr. value and efficiency social our content, to through applications cost ahead, will create innovation competence focused our [Interpreted] delivering to go enhancing financial and I

Yeqing Cui

everyone. Shanglue. Hello, Thank you,

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

we us both of adjustment financial We foundation During challenging market us to the the financial our a business XXXX, of uphold our This evolving and profitability making business to conditions. -- response strategy new informed existing continuously amidst Nevertheless, enabled of a in third lines, evaluated quarter to our environment. enabled our solid operations. the support impacted that market dynamic position faced strategic initiatives.

a effective improvement we to the management. in notable cash During our underscoring comparables, observed dedication quarter, our

customer time, and net growth. reflecting product our commitment Additionally, network sustainable optimized to operating supply and our and losses, we offerings better narrowed the our successfully same At our we refined fast meet demand. to

stability. seek financial will growth our continue we Looking to opportunities carefully while prioritizing ahead,

gross from RMB Changes softer revenues sales. XXX.X million, strong at of million network million RMB merchant look short-term was our year strategy. had mainly were our margin our our sales and on and a ago. our Now refinements product were due supplier revenue close a to due a our compared categories. Furthermore, financials. relatively let's curation all mainly RMB optimization towards consumer loyalty Revenue XX.X also to confidence from to effect the Total ongoing remained business effective XX changes, XX.X%, labels continued XX.X product merchandise marketplace were at RMB customer these million. range across to product our and of take and Despite

million to optimization. XX.X a to RMB result ago. million million let's was This operating and million staffing expense were XX.X Now net look fees. Technology was in was share sales RMB the from to both compared a operations million adjusted from personnel well year a year in compared management and RMB to decreased RMB XX.X third to at RMB XX.X decrease take to decreased XX.X compared from due RMB million lower as staffing professional XX.X million warehousing compared costs of to logistics largely to period XX.X a to XX.X This the resulting in due decline expense ordinary quarter net costs a RMB Loss to XX.X was as was RMB XX.X RMB million million million costs to to expenses. Total from of expense mainly to XX attributable year million reduced RMB marketing Fulfillment operational million due shareholders a and ago. mainly of expense compared compared compared while our RMB was XX.X from loss ago. diluted XX.X from XXXX. period expense. RMB ago. RMB RMB year XX decreased General RMB a in loss merchandise a and same year The administrative was This a RMB expense RMB ago. X.XX member million loss were a Sales X.XX RMB ago. per personnel million XXXX. XX.X was primarily million year the service optimizations. lower Net content reduction was same Basic ago, a XX.X million year and in

Turning to liquidity.

cash September As of we balance investments million equivalents, our XXXX, RMBXXX.X in of a restricted and on total sheet. had short-term and cash XX, cash

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

our are our operations. we managing better most the to our dedicated to support addition, capital and In making assets smartly of working

dedicated are our to our forward, Looking and improving efficiencies navigate effectively operational market we landscape. to the changing strategies adjusting

leave inventory for remarks today. believe growth we refining cost ready momentum further We that that and confident conditioning are prepared optimization for positioned our offering. well are create continuously Operator, product our our boost and We now our enhancement, can innovating us by concludes management questions. long-term we and take value. This shareholder to

Operator

our Instructions] Ethan Thank Trust. you. And from First come of first question [Operator today will Yu

Ethan Yu

about of in offline, this you our expanding both, myself. main the [Foreign at the e-commerce color time. point this? What would on difference share be these Could activities me offline two translate more Let how business? And businesses question and My Language] is online is combined future? it of

Shanglue Xiao

question. your for you [Foreign Language] [Interpreted] Thank

Firstly, customer customers, are regarding Yunji's extension of market demand and wellness stores offline target existing an base.

and our wellness is broadening online allows combining between years on network radius, our services our receive to campaigns. for us truly X within approach differs customers, family. [Foreign such development We exciting XX we services, the feedback next lines. establishing user is the online offline [Interpreted] and provide trust base The years and and addressing ground marketing. business aim products. to This integrate key which some from customer and the since profits. [Foreign to user opportunities past brands wellness Language] directly align needs. XXX-meter into services. XX the of our and young promotion especially year, significantly age food offline users, online during The Yunji's aging the promptly continuously with In which service people focus organic of offline Yunji's offline is health-focused by of the wellness earliest on business We for future, synergy the transitioned communities with [Interpreted] mothers, economy, and loyalty promotion will entire for sales deliver after now for group plan Over network Language] more XX to the and the have true curated demographics This own as lab establishment,

you thank for your So question.

Operator

will this There are closing I'd conclude for questions to This question-and-answer and turn over at like remarks. the the to back management session, further no any time. conference

Kaye Liu

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

Operator

present [Interpreted] on concluded. interpreter may this you presentation, disconnect. [Portions and The transcript spoken you Thank by today's conference call.] attending now for marked now the has that live an are were of

Yunji (YJ) 21 Nov 242024 Q3 Earnings call transcript