HANGZHOU, China, May 31, 2022
/PRNewswire/ -- Yunji Inc. ("Yunji" or the "Company") (NASDAQ: YJ),
a leading membership-based social e-commerce platform, today
announced its unaudited financial results for the first quarter
ended March 31,
2022[1].
First Quarter 2022 Highlights
- Total revenues in the first quarter of 2022 were
RMB342.6 million (US$54.0 million), compared with RMB675.4 million in the same period of 2021,
primarily due to the negative impact of the outbreaks of the
highly-transmissible Delta and Omicron variants of COVID-19 in
early 2022 on the Company's operations and the Company's continued
strategy to refine its product selection across all categories and
optimize its selection of suppliers and merchants, causing
near-term decreases in sales. The COVID-19 outbreaks in early 2022
have caused varying degrees of temporary shutdowns and delays in
production and operation of the Company's suppliers (especially
private label suppliers), third-party merchants, third-party
logistics service providers and other business partners, leading to
temporary shortages of certain merchandise and delays in logistics
services as well as delays in the research and development and new
product launch processes associated with the Company's private
label suppliers. This has negatively affected and may continue to
negatively affect the Company's revenues and operations in 2022,
depending on the future development of the COVID-19 pandemic.
- Repeat purchase rate[2] in the twelve months
ended March 31, 2022 was 80.2%.
Mr. Shanglue Xiao, Chairman and Chief Executive Officer of
Yunji, said, "We recently celebrated the seven-year anniversary of
our incorporation and are excited to start a new chapter of our
business with an upgraded product curation strategy. Our new
strategy will further augment the development and promotion of
high-quality products and our own private label brands. We believe
in our strong growth potential as we execute on our upgraded
strategy through the current transitory macro headwinds."
"Despite the turbulent macro environment, we maintained a steady
and healthy performance and achieved operating profitability for
the fourth consecutive quarter. During the first quarter of 2022,
we recorded operating income of RMB2.4
million (US$0.4 million),
compared to operating loss of RMB19.8
million in the same period last year. Our product curation
and supply chain differentiation strategies enable us to more
tightly control our business operations and further optimize our
cost structure. We remain confident in our ability to navigate the
current challenges through our agile and flexible operations." said
Mr. Peng Zhang, Yunji's Vice
President of Finance.
First Quarter 2022 Unaudited Financial Results
Total revenues were RMB342.6
million (US$54.0 million),
compared with RMB675.4 million in the
same period of 2021. This decrease was primarily due to the
negative impact of the outbreaks of the highly-transmissible Delta
and Omicron variants of COVID-19 in early 2022 on the Company's
operations and the Company's continued strategy to refine its
product selection across all categories and optimize its selection
of suppliers and merchants, causing near-term decreases in sales.
The COVID-19 outbreaks in early 2022 have caused varying degrees of
temporary shutdowns and delays in production and operation of the
Company's suppliers (especially private label suppliers),
third-party merchants, third-party logistics service providers and
other business partners, leading to temporary shortages of certain
merchandise and delays in logistics services as well as delays in
the research and development and new product launch processes
associated with the Company's private label suppliers. This has
negatively affected and may continue to negatively affect the
Company's revenues and operations in 2022, depending on the future
development of the COVID-19 pandemic.
- Revenues from sales of merchandise, net decreased by 49.2% to
RMB290.5 million (US$45.8 million) from RMB571.9 million in the same period of 2021.
- Revenues from the marketplace business were RMB47.4 million (US$7.5
million), compared with RMB95.4
million in the same period of 2021.
- Other revenues decreased by 42.2% to RMB4.7 million (US$0.7
million) from RMB8.1 million
in the same period of 2021.
Total cost of revenues decreased by 56.5% to
RMB191.3 million (US$30.2 million), or 55.8% of total revenues,
from RMB439.4 million, or 65.1% of
total revenues, in the same period of 2021. The decrease was mainly
attributable to the decline in merchandise sales, which recognize
revenues on a gross basis. Total cost of revenues was mainly
comprised of those costs related to the sales of merchandise
revenue in the first quarter of 2022.
Total operating expenses decreased by 43.2% to
RMB154.9 million (US$24.4 million) from RMB272.7 million in the same period of 2021.
- Fulfillment expenses decreased by 24.6% to RMB48.9 million (US$7.7
million), or 14.3% of total revenues, from RMB64.8 million, or 9.6% of total revenues, in
the same period of 2021. The decrease was primarily due to: (i)
reduced personnel costs due to staffing structure refinements, and
(ii) decreased service fees charged by third-party payment
settlement platforms.
- Sales and marketing expenses decreased by 47.4% to
RMB50.7 million (US$8.0 million), or 14.8% of total revenues, from
RMB96.3 million, or 14.3% of total
revenues, in the same period of 2021. The decrease was mainly due
to the decrease in member management fees.
- Technology and content expenses decreased by 35.6% to
RMB24.1 million (US$3.8 million), or 7.0% of total revenues, from
RMB37.5 million, or 5.6% of total
revenues, in the same period of 2020. The decrease was mainly due
to the reduction in personnel costs as a result of staffing
structure refinements and reduced server costs.
- General and administrative expenses decreased by 57.8%
to RMB31.2 million (US$4.9 million), or 9.1% of total revenues, from
RMB74.1 million, or 11.0% of total
revenues, in the same period of 2021, primarily due to a decrease
in share-based compensation expenses and reduced personnel costs as
a result of staffing structure refinements.
Income from operations was RMB2.4 million (US$0.4
million), compared with loss from operations of RMB19.8 million in the same period of 2021.
Financial loss, net was RMB35.3
million (US$5.6 million),
compared with financial income, net of RMB20.5 million in the same period of 2021,
primarily due to the decreased fair value of equity securities with
readily determinable fair value.
Net loss was RMB36.9
million (US$5.8 million),
compared with RMB4.0 million in the
same period of 2021.
Adjusted net loss (non-GAAP)[3] was
RMB30.6 million (US$4.8 million), compared with adjusted net
income of RMB17.1 million in the same
period of 2021.
Basic and diluted net loss per share attributable to
ordinary shareholders were both RMB0.02, compared with nil in the same period of
2021.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses
adjusted net income/(loss) as a supplemental measure to review and
assess operating performance. The presentation of this non-GAAP
financial measure is not intended to be considered in isolation or
as a substitute for the financial information prepared and
presented in accordance with U.S. GAAP. The Company defines
adjusted net income/(loss) as net income/(loss) excluding
share-based compensation.
The Company presents adjusted net income/(loss) because it is
used by management to evaluate operating performance and formulate
business plans. Adjusted net income/(loss) enables management to
assess operating performance without considering the impact of
share-based compensation recorded under ASC 718,
"Compensation-Stock Compensation." The Company also believes that
the use of this non-GAAP measure facilitates investors' assessment
of operating performance.
This non-GAAP financial measure is not defined under U.S. GAAP
and is not presented in accordance with U.S. GAAP. The non-GAAP
financial measure has limitations as an analytical tool. One of the
key limitations of using adjusted net income/(loss) is that it does
not reflect all items of income and expense that affect the
Company's operations. Share-based compensation has been and may
continue to be incurred in Yunji's business and is not reflected in
the presentation of adjusted net income/(loss). Further, this
non-GAAP measure may differ from the non-GAAP information used by
other companies, including peer companies, and therefore its
comparability may be limited.
The Company compensates for these limitations by reconciling the
non-GAAP financial measure to the nearest U.S. GAAP performance
measure, all of which should be considered when evaluating
performance. Yunji encourages investors and others to review its
financial information in its entirety and not rely on a single
financial measure.
For more information on the non-GAAP financial measures, please
see the table captioned "Reconciliation of Non-GAAP Measures to the
Most Directly Comparable Financial Measures" set forth at the end
of this press release.
Conference Call
The Company will host a conference call on Tuesday, May 31, 2022, at 7:00 A.M. Eastern Time or 7:00 P.M. Beijing/Hong Kong Time to discuss its
earnings. Listeners may access the call by dialing the following
numbers:
International:
|
1-412-902-4272
|
United States Toll
Free:
|
1-888-346-8982
|
Mainland China Toll
Free:
|
4001-201203
|
Hong Kong Toll
Free:
|
800-905945
|
Conference
ID:
|
Yunji Inc.
|
The replay will be accessible through June 7, 2022 by dialing the following
numbers:
United States Toll
Free:
|
1-877-344-7529
|
International:
|
1-412-317-0088
|
Replay Access
Code:
|
3738769
|
Safe Harbor Statements
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "aims," "future," "intends,"
"plans," "believes," "estimates," "confident," "potential,"
"continue" or other similar expressions. Among other things, the
quotations from management in this announcement, as well as Yunji's
strategic and operational plans, contain forward-looking
statements. Yunji may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission (the "SEC"), in its annual report to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
but not limited to statements about Yunji's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: Yunji's growth strategies; its future
business development, results of operations and financial
condition; its ability to understand buyer needs and provide
products and services to attract and retain buyers; its ability to
maintain and enhance the recognition and reputation of its brand;
its ability to rely on merchants and third-party logistics service
providers to provide delivery services to buyers; its ability to
maintain and improve quality control policies and measures; its
ability to establish and maintain relationships with merchants;
trends and competition in China's
e-commerce market; changes in its revenues and certain cost or
expense items; the expected growth of China's e-commerce market; PRC governmental
policies and regulations relating to Yunji's industry, and general
economic and business conditions globally and in China and assumptions underlying or related to
any of the foregoing. Further information regarding these and other
risks is included in Yunji's filings with the SEC. All information
provided in this press release and in the attachments is as of the
date of this press release, and Yunji undertakes no obligation to
update any forward-looking statement, except as required under
applicable law.
About Yunji Inc.
Yunji Inc. is a leading social e-commerce platform in
China that has pioneered a unique,
membership-based model to leverage the power of social
interactions. The Company's e-commerce platform offers high-quality
products at attractive prices across a wide variety of categories
catering to the day-to-day needs of Chinese consumers. In addition,
the Company uses advanced technologies including big data and
artificial intelligence to optimize user experience and incentivize
members to promote the platform as well as share products with
their social contacts. Through deliberate product curation,
centralized merchandise sourcing, and efficient supply chain
management, Yunji has established itself as a trustworthy
e-commerce platform with high-quality products and exclusive
membership benefits, including discounted prices.
For more information, please visit
https://investor.yunjiglobal.com/
Investor Relations Contact
Yunji Inc.
Investor Relations
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957
ICR, LLC
Robin Yang
Email: Yunji.IR@icrinc.com
Phone: +1 (646) 224-6957
YUNJI
INC.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
|
As of
|
|
|
December
31,
2021
|
|
March
31,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
567,204
|
|
306,382
|
|
48,331
|
Restricted cash
|
|
62,528
|
|
50,885
|
|
8,026
|
Short-term
investments
|
|
380,052
|
|
385,371
|
|
60,791
|
Accounts receivable,
net (Allowance for
credit losses of RMB7,225 and
RMB4,799, respectively)
|
|
118,166
|
|
81,791
|
|
12,902
|
Advance to
suppliers
|
|
59,437
|
|
71,295
|
|
11,247
|
Inventories,
net
|
|
84,500
|
|
80,690
|
|
12,728
|
Amounts due from
related parties
|
|
2,532
|
|
2,854
|
|
450
|
Prepaid expenses and
other current assets
(Allowance for credit losses of RMB4,791
and RMB5,059,
respectively)
|
|
430,717
|
|
430,842
|
|
67,964
|
|
|
|
|
|
|
|
Total current assets
|
|
1,705,136
|
|
1,410,110
|
|
222,439
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property and equipment, net
|
|
12,842
|
|
10,923
|
|
1,723
|
Long-term
investments
|
|
381,401
|
|
401,848
|
|
63,390
|
Deferred tax
assets
|
|
17,497
|
|
14,005
|
|
2,209
|
Operating lease
right-of-use assets, net
|
|
5,420
|
|
4,274
|
|
674
|
Other non-current
assets (Allowance for
credit losses of RMB488 and RMB540,
respectively)
|
|
227,674
|
|
308,782
|
|
48,709
|
|
|
|
|
|
|
|
Total non-current assets
|
|
644,834
|
|
739,832
|
|
116,705
|
|
|
|
|
|
|
|
Total
assets
|
|
2,349,970
|
|
2,149,942
|
|
339,144
|
YUNJI
INC.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
|
|
As of
|
|
|
December
31,
2021
|
|
March
31,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
LIABILITIES AND
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
254,839
|
|
203,174
|
|
32,050
|
Deferred
revenue
|
|
105,752
|
|
61,947
|
|
9,772
|
Incentive payables to
members
|
|
265,612
|
|
245,536
|
|
38,732
|
Member management fees
payable[4]
|
|
15,570
|
|
9,424
|
|
1,487
|
Other payable and
accrued liabilities
|
|
202,786
|
|
169,195
|
|
26,689
|
Amounts due to related
parties
|
|
15,630
|
|
10,595
|
|
1,671
|
Operating lease
liabilities - current
|
|
5,571
|
|
5,566
|
|
878
|
|
|
|
|
|
|
|
Total current liabilities
|
|
865,760
|
|
705,437
|
|
111,279
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
3,123
|
|
1,563
|
|
247
|
Deferred tax
liabilities
|
|
2,572
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
5,695
|
|
1,563
|
|
247
|
|
|
|
|
|
|
|
Total Liabilities
|
|
871,455
|
|
707,000
|
|
111,526
|
YUNJI
INC.
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
|
As of
|
|
|
December
31,
2021
|
|
March
31,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
70
|
|
70
|
|
11
|
Less: Treasury
stock
|
|
(44,228)
|
|
(13,653)
|
|
(2,154)
|
Additional paid-in
capital
|
|
7,342,344
|
|
7,316,590
|
|
1,154,164
|
Statutory
reserve
|
|
14,019
|
|
14,019
|
|
2,211
|
Accumulated other comprehensive
loss
|
|
(15,664)
|
|
(20,636)
|
|
(3,255)
|
Accumulated deficit
|
|
(5,818,645)
|
|
(5,855,142)
|
|
(923,626)
|
Total Yunji
Inc. shareholders' equity
|
|
1,477,896
|
|
1,441,248
|
|
227,351
|
Non-controlling
interests
|
|
619
|
|
1,694
|
|
267
|
Total shareholders'
equity
|
|
1,478,515
|
|
1,442,942
|
|
227,618
|
Total liabilities
and shareholders' equity
|
|
2,349,970
|
|
2,149,942
|
|
339,144
|
YUNJI
INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
|
For the Three Months
Ended
|
|
|
March
31,
2021
|
|
March
31,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues:
|
|
|
|
|
|
|
Sales of
merchandise, net
|
|
571,888
|
|
290,455
|
|
45,818
|
Marketplace
revenue
|
|
95,374
|
|
47,426
|
|
7,481
|
Other
revenues
|
|
8,135
|
|
4,698
|
|
741
|
Total
revenues
|
|
675,397
|
|
342,579
|
|
54,040
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Cost of
revenues
|
|
(439,365)
|
|
(191,317)
|
|
(30,180)
|
Fulfilment
|
|
(64,834)
|
|
(48,914)
|
|
(7,716)
|
Sales and
marketing
|
|
(96,325)
|
|
(50,650)
|
|
(7,990)
|
Technology and
content
|
|
(37,488)
|
|
(24,140)
|
|
(3,808)
|
General and
administrative
|
|
(74,068)
|
|
(31,223)
|
|
(4,925)
|
Total operating cost
and expenses
|
|
(712,080)
|
|
(346,244)
|
|
(54,619)
|
Other operating
income
|
|
16,914
|
|
6,109
|
|
964
|
(Loss)/income from
operations
|
|
(19,769)
|
|
2,444
|
|
385
|
Financial
income/(loss), net
|
|
20,486
|
|
(35,270)
|
|
(5,564)
|
Foreign exchange
income/(loss), net
|
|
171
|
|
(313)
|
|
(49)
|
Other
non-operating income, net
|
|
913
|
|
2,023
|
|
319
|
Income/(loss) before
income tax
expense, and equity in loss of
affiliates, net of tax
|
|
1,801
|
|
(31,116)
|
|
(4,909)
|
Income tax
expense[5]
|
|
(3,249)
|
|
(5,324)
|
|
(840)
|
Equity in loss
of affiliates, net of tax
|
|
(2,524)
|
|
(455)
|
|
(72)
|
Net
loss
|
|
(3,972)
|
|
(36,895)
|
|
(5,821)
|
Less: net loss
attributable to non-
controlling interests shareholders
|
|
(149)
|
|
(399)
|
|
(63)
|
Net loss
attributable to YUNJI INC.
|
|
(3,823)
|
|
(36,496)
|
|
(5,758)
|
YUNJI
INC.
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(CONTINUED)
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
|
For the Three Months
Ended
|
|
|
March
31,
2021
|
|
March
31,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net loss
attributable to ordinary
shareholders
|
|
(3,823)
|
|
(36,496)
|
|
(5,758)
|
Net
loss
|
|
(3,972)
|
|
(36,895)
|
|
(5,821)
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
Foreign currency translation
adjustment
|
|
6,475
|
|
(4,972)
|
|
(784)
|
Total comprehensive
income/(loss)
|
|
2,503
|
|
(41,867)
|
|
(6,605)
|
Less: total
comprehensive loss
attributable to non-controlling
interests shareholders
|
|
(149)
|
|
(399)
|
|
(63)
|
Total comprehensive
income/(loss)
attributable to YUNJI INC.
|
|
2,652
|
|
(41,468)
|
|
(6,542)
|
Net loss
attributable to ordinary
shareholders
|
|
(3,823)
|
|
(36,496)
|
|
(5,758)
|
Weighted average
number of
ordinary shares used in computing
net loss per share, basic and diluted
|
|
2,134,812,630
|
|
2,147,541,470
|
|
2,147,541,470
|
Net loss per share
attributable to
ordinary shareholders
|
|
|
|
|
|
|
Basic
|
|
-
|
|
(0.02)
|
|
-
|
Diluted
|
|
-
|
|
(0.02)
|
|
-
|
YUNJI
INC.
|
NOTES TO UNAUDITED
FINANCIAL INFORMATION
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
|
For the Three Months
Ended
|
|
|
March
31,
2021
|
|
March
31,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Share-based
compensation
expenses included in:
|
|
|
|
|
|
|
Technology
and content
|
|
1,894
|
|
1,196
|
|
189
|
General
and administrative
|
|
18,847
|
|
4,778
|
|
753
|
Fulfillment
|
|
(63)
|
|
618
|
|
98
|
Sales and
marketing
|
|
360
|
|
(325)
|
|
(51)
|
Total
|
|
21,038
|
|
6,267
|
|
989
|
YUNJI
INC.
|
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE
FINANCIAL MEASURES
|
(All amounts in
thousands, except for share and per share data, unless otherwise
noted)
|
|
|
For the Three Months
Ended
|
|
|
March
31,
2021
|
|
March
31,
2022
|
|
|
RMB
|
|
RMB
|
|
US$
|
Reconciliation of
Net Loss to Adjusted Net Income:
|
|
|
|
|
|
|
Net
loss
|
|
(3,972)
|
|
(36,895)
|
|
(5,821)
|
Add:
Share-based compensation
|
|
21,038
|
|
6,267
|
|
989
|
Adjusted
net income/(loss)
|
|
17,066
|
|
(30,628)
|
|
(4,832)
|
1. This announcement
contains translations of certain Renminbi (RMB) amounts into U.S.
dollars (US$) at a specified rate solely for the convenience of the
reader. Unless otherwise noted, the translation of RMB into US$ has
been made at RMB6.3393 to US$1.00, the exchange rate in effect as
of March 31, 2022 as set forth in the H.10 statistical release of
The Board of Governors of the Federal Reserve System.
|
2. "Repeat purchase
rate" in a given period is calculated as the number of transacting
members who purchased not less than twice divided by the total
number of transacting members during such period. "Transacting
member" in a given period refers to a member who successfully
promotes Yunji's products to generate at least one order or places
at least one order on Yunji's platform, regardless of whether any
product in such order is ultimately sold or delivered or whether
any product in such order is returned.
|
3. Adjusted net
income/(loss) is a non-GAAP financial measure, which is defined as
net income/(loss) excluding share-based compensation expense. See
"Reconciliation of Non-GAAP Measures to the Most Directly
Comparable Financial Measures" set forth at the end of this press
release.
|
4. As of March 31,
2022, the decrease in incentive payables was mainly due to
derecognition of long-aged payables to inactive members starting
this quarter.
|
5. Income tax expense
for the first quarter of 2022 was RMB5.3 million (US$0.8 million),
compared to RMB3.2 million in the same period of 2021. The
Company's effective tax rate was changed primarily due to some of
the subsidiaries continually making profit in addition to those
profitable subsidiaries utilizing the tax loss carry forwards from
previous years.
|
View original
content:https://www.prnewswire.com/news-releases/yunji-announces-first-quarter-2022-unaudited-financial-results-301557556.html
SOURCE Yunji Inc.