HANGZHOU, China, May 27, 2021 /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, 2021[1].
First Quarter 2021 Highlights
- Total revenues in the first quarter of 2021 were
RMB675.4 million (US$103.1 million), compared with RMB1,649.2 million in the same period of 2020,
primarily due to the Company's focus on upgrading its strategy of
carefully curating products through the implementation of its
megahit product pool initiative to refine its product selections
across all platform categories, which is in line with the Company's
long-term growth plan. During the refinement process, the Company
made adjustments to optimize its selection of suppliers and
merchants across its platform, which caused sales decreases in both
its marketplace business and merchandise sales.
- Repeat purchase rate[2] in
the twelve months ended March 31,
2021 was 80.6%.
Mr. Shanglue Xiao, Chairman and Chief Executive Officer of
Yunji, said, "During the first quarter, we continued to pave the
way for our long-term and sustainable growth by upgrading our
product curation strategy. More specifically, this involved
launching our megahit product pool initiative to introduce more
products with strong repurchase potential and customer appeal as
well as refining our product selections across all of our platform
categories. Our progress on the product side and prioritization of
lasting growth over short-term sales improvements have already
garnered positive feedback from our loyal members and service
managers. Looking ahead, as we continue to position our platform as
the go-to location for members to purchase high-quality and
cost-effective products, our service managers will be more
motivated to receive additional benefits through sharing and
engagement. We remain confident that such efforts will lead to more
win-win relationships between our ecosystem participants as well as
the healthy growth and development of our platform over the long
run."
"As we continued to upgrade and enhance our portfolio of product
offerings, we also remained focused on improving our cost
structures, achieving better operating efficiency, and maintaining
a healthy financial profile. Going forward, we will stay
disciplined in cost management while our new and improved product
curation strategy will continue to fuel our long-term growth,
allowing us to form more mutually beneficial partnerships with
suppliers and thus generate greater shareholder value." said Mr.
Chengqi Zhang, Vice President of Finance of Yunji.
First Quarter 2021 Unaudited Financial Results
Total revenues were RMB675.4
million (US$103.1 million),
compared with RMB1,649.2 million in
the same period of 2020. This decrease was primarily due to the
Company's decision to upgrade its strategy of carefully curating
products starting from the first quarter of 2021. As part of these
upgrades, the Company launched its megahit product pool initiative,
which focused on introducing more products with strong repurchase
potential and customer appeal, and refined product selections
across all product categories on its platform. During the
refinement process, the Company made adjustments to optimize its
selection of suppliers and merchants across its platform, which
caused sales decreases in both its marketplace business and
merchandise sales.
- Revenues from sales of merchandise, net decreased by 60.4% to
RMB571.9 million (US$87.3 million) from RMB1,445.9 million in the same period of
2020.
- Revenues from the membership program were nil, compared with
RMB25.1 million in the same period of
2020. From January 2020 until the end
of March 2021, the Company allowed
any user to become a member and enjoy membership benefits free of
charge for one year by simply registering for an account on the
Yunji app. The Company continued to grant free membership benefits
to such members during the first quarter of 2021. As a result,
there was no membership revenue in the first quarter of 2021, while
membership revenues in the first quarter of 2020 were all from the
deferred revenue of prior paying members. The Company has ceased
allowing users to become members free of charge since April 1, 2021.
- Revenues from the marketplace business were RMB95.4 million (US$14.6
million), compared with RMB158.1
million in the same period of 2020.
- Other revenues decreased by 59.6% to RMB8.1 million (US$1.2
million) from RMB20.1 million
in the same period of 2020.
Total cost of revenues decreased by 61.7% to
RMB439.4 million (US$67.1 million), or 65.1% of total revenues,
from RMB1,148.0 million, or 69.6% of
total revenues, in the same period of 2020. 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 2021.
Total operating expenses decreased by 47.8% to
RMB272.7 million (US$41.6 million) from RMB522.9 million in the same period of 2020.
- Fulfillment expenses decreased by 53.0% to RMB64.8 million (US$9.9
million), or 9.6% of total revenues, from RMB138.1 million, or 8.4% of total revenues, in
the same period of 2020. The decrease was primarily due to: (i)
reduced warehousing and logistics expenses due to lower merchandise
sales, and (ii) reduced personnel costs due to staffing structure
refinements.
- Sales and marketing expenses decreased by 61.7% to
RMB96.3 million (US$14.7 million), or 14.3% of total revenues,
from RMB251.7 million, or 15.3% of
total revenues, in the same period of 2020. The decrease was mainly
due to the decreases in member management fees and business
promotion expenses.
- Technology and content expenses decreased by 35.3% to
RMB37.5 million (US$5.7 million), or 5.6% of total revenues, from
RMB57.9 million, or 3.5% 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.
- General and administrative expenses decreased by 1.5% to
RMB74.1 million (US$11.3 million), or 11.0% of total revenues,
from RMB75.2 million, or 4.6% of
total revenues, in the same period of 2020, primarily due to a
decrease in share-based compensation expenses.
Loss from operations was RMB19.8 million (US$3.0
million), compared with RMB6.1
million in the same period of 2020.
Financial income, net was RMB20.5
million (US$3.1 million),
compared with financial loss, net of RMB9.8
million in the same period of 2020, primarily due to a gain
of RMB15.9 million (US$2.4 million) from the fair value change of
equity securities with readily determinable fair value in the first
quarter of 2021, compared with a loss of RMB23.4 million from the fair value change of
equity securities with readily determinable fair value in the same
period of 2020.
Net loss was RMB4.0
million (US$0.6 million),
compared with RMB13.2 million in the
same period of 2020.
Adjusted net income
(non-GAAP)[3] was
RMB17.1 million (US$2.6 million), compared with RMB26.1 million in the same period of 2020.
Basic and diluted net loss per share attributable to
ordinary shareholders were both nil, compared with RMB0.01 in the same period of 2020.
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 Thursday, May 27, 2021, at 7:00 AM Eastern Time or 7:00 PM Beijing/Hong Kong Time to discuss its
earnings.
In advance of the conference call, all participants must use the
following link to complete the online registration process. Upon
registering, each participant will receive important details for
this conference including the call date and time, a unique
registrant ID, and a set of participant dial-in numbers to join the
conference call.
Conference
ID
|
7785047
|
Registration
Link
|
http://apac.directeventreg.com/registration/event/7785047
|
A telephone replay of the call will be available after the
conclusion of the conference call for one week.
Dial-in numbers for the replay are as follows:
United States Toll
Free
|
+1-855-452-5696
|
International
|
+61-2-8199-0299
|
Conference
ID
|
7785047
|
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, Inc.
Xinran Rao
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,
2020
|
|
March
31,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
1,063,900
|
|
977,458
|
|
149,189
|
Restricted cash
|
|
125,844
|
|
89,890
|
|
13,720
|
Short-term
investments
|
|
134,146
|
|
131,919
|
|
20,135
|
Accounts receivable,
net (Allowance for
credit losses of RMB8,603 and
RMB3,817, respectively)
|
|
164,733
|
|
166,293
|
|
25,381
|
Advance to
suppliers
|
|
103,836
|
|
89,445
|
|
13,655
|
Inventories,
net
|
|
135,245
|
|
102,759
|
|
15,684
|
Amounts due from
related parties
|
|
7,841
|
|
2,157
|
|
329
|
Prepaid expenses and
other current assets
(Allowance for credit losses of RMB2,972
and RMB4,485, respectively)
|
|
410,423
|
|
395,986
|
|
60,439
|
|
|
|
|
|
|
|
Total current assets
|
|
2,145,968
|
|
1,955,907
|
|
298,532
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property and equipment, net
|
|
26,010
|
|
20,010
|
|
3,054
|
Long-term
investments[5]
|
|
158,931
|
|
230,097
|
|
35,120
|
Deferred tax
assets
|
|
59,455
|
|
39,445
|
|
6,020
|
Operating lease
right-of-use assets, net
|
|
11,324
|
|
5,923
|
|
904
|
Other non-current
assets (Allowance for
credit losses of RMB1,514 and
RMB1,463, respectively)
|
|
148,793
|
|
144,726
|
|
22,089
|
|
|
|
|
|
|
|
Total non-current assets
|
|
404,513
|
|
440,201
|
|
67,187
|
|
|
|
|
|
|
|
Total
assets
|
|
2,550,481
|
|
2,396,108
|
|
365,719
|
|
|
|
|
|
|
|
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,
2020
|
|
March
31,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
LIABILITIES,
MEZZANINE EQUITY AND
SHAREHOLDERS' (DEFICITS)/EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
501,549
|
|
405,329
|
|
61,865
|
Deferred
revenue
|
|
50,951
|
|
39,795
|
|
6,074
|
Incentive payables to
members
|
|
312,170
|
|
288,932
|
|
44,100
|
Refund payable to
members
|
|
4,398
|
|
3,264
|
|
498
|
Member management
fees payable
|
|
45,841
|
|
51,309
|
|
7,831
|
Other payable and
accrued liabilities
|
|
280,586
|
|
237,304
|
|
36,220
|
Amounts due to
related parties
|
|
22,989
|
|
19,646
|
|
2,999
|
Operating lease
liabilities - current
|
|
6,988
|
|
4,561
|
|
696
|
|
|
|
|
|
|
|
Total current liabilities
|
|
1,225,472
|
|
1,050,140
|
|
160,283
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
8,309
|
|
5,456
|
|
833
|
Deferred tax
liabilities
|
|
1,832
|
|
1,655
|
|
253
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
10,141
|
|
7,111
|
|
1,086
|
|
|
|
|
|
|
|
Total Liabilities
|
|
1,235,613
|
|
1,057,251
|
|
161,369
|
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, 2020
|
|
March
31,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary
shares
|
|
70
|
|
70
|
|
11
|
Less: Treasury
stock
|
|
(85,202)
|
|
(64,220)
|
|
(9,802)
|
Additional paid-in
capital
|
|
7,327,148
|
|
7,328,955
|
|
1,118,617
|
Statutory
reserve
|
|
12,624
|
|
12,624
|
|
1,927
|
Accumulated other comprehensive income
|
|
9,452
|
|
15,927
|
|
2,431
|
Accumulated deficit
|
|
(5,952,085)
|
|
(5,955,903)
|
|
(909,048)
|
Total Yunji
Inc. shareholders' equity
|
|
1,312,007
|
|
1,337,453
|
|
204,136
|
Non-controlling
interests
|
|
2,861
|
|
1,404
|
|
214
|
Total
shareholders' equity
|
|
1,314,868
|
|
1,338,857
|
|
204,350
|
Total liabilities
and shareholders' equity
|
|
2,550,481
|
|
2,396,108
|
|
365,719
|
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,
2020
|
|
March
31,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
Revenues:
|
|
|
|
|
|
|
Sales of merchandise,
net
|
|
1,445,857
|
|
571,888
|
|
87,287
|
Membership program
revenue
|
|
25,134
|
|
-
|
|
-
|
Marketplace
revenue
|
|
158,071
|
|
95,374
|
|
14,557
|
Other
revenues
|
|
20,144
|
|
8,135
|
|
1,242
|
Total
revenues
|
|
1,649,206
|
|
675,397
|
|
103,086
|
Operating cost and
expenses:
|
|
|
|
|
|
|
Cost of
revenues
|
|
(1,148,024)
|
|
(439,365)
|
|
(67,060)
|
Fulfilment
|
|
(138,086)
|
|
(64,834)
|
|
(9,896)
|
Sales and
marketing
|
|
(251,661)
|
|
(96,325)
|
|
(14,702)
|
Technology and
content
|
|
(57,937)
|
|
(37,488)
|
|
(5,722)
|
General and
administrative
|
|
(75,182)
|
|
(74,068)
|
|
(11,305)
|
Total operating
cost and expenses
|
|
(1,670,890)
|
|
(712,080)
|
|
(108,685)
|
Other operating
income
|
|
15,578
|
|
16,914
|
|
2,582
|
Loss from
operations
|
|
(6,106)
|
|
(19,769)
|
|
(3,017)
|
Financial
(expense)/income, net
|
|
(9,804)
|
|
20,486
|
|
3,127
|
Foreign exchange
income, net
|
|
6,021
|
|
171
|
|
26
|
Other non-operating
income, net
|
|
-
|
|
913
|
|
139
|
(Loss)/Income
before income tax
expense, and equity in loss of
affiliates, net of tax
|
|
(9,889)
|
|
1,801
|
|
275
|
Income tax
expense[4]
|
|
(3,145)
|
|
(3,249)
|
|
(496)
|
Equity in loss of
affiliates, net of tax
|
|
(204)
|
|
(2,524)
|
|
(385)
|
Net
loss
|
|
(13,238)
|
|
(3,972)
|
|
(606)
|
Less: net loss
attributable to non-
controlling interests shareholders
|
|
(128)
|
|
(149)
|
|
(23)
|
Net loss
attributable to YUNJI INC.
|
|
(13,110)
|
|
(3,823)
|
|
(583)
|
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,
2020
|
|
March
31,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
Net loss
attributable to ordinary
shareholders
|
|
(13,110)
|
|
(3,823)
|
|
(583)
|
Net
loss
|
|
(13,238)
|
|
(3,972)
|
|
(606)
|
Other comprehensive
income
|
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
|
18,249
|
|
6,475
|
|
988
|
Total
comprehensive income
|
|
5,011
|
|
2,503
|
|
382
|
Less: total
comprehensive loss
attributable to non-controlling
interests shareholders
|
|
(128)
|
|
(149)
|
|
(23)
|
Total
comprehensive income
attributable to YUNJI INC.
|
|
5,139
|
|
2,652
|
|
405
|
Net loss
attributable to ordinary
shareholders
|
|
(13,110)
|
|
(3,823)
|
|
(583)
|
Weighted average number
of
ordinary shares used in computing
net loss per share, basic and diluted
|
|
2,124,159,023
|
|
2,134,812,630
|
|
2,134,812,630
|
Net loss per share
attributable to
ordinary shareholders
|
|
|
|
|
|
|
Basic
|
|
(0.01)
|
|
-
|
|
-
|
Diluted
|
|
(0.01)
|
|
-
|
|
-
|
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,
2020
|
|
March
31,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
Share-based
compensation
expenses included in:
|
|
|
|
|
|
|
Technology and
content
|
|
3,969
|
|
1,894
|
|
289
|
General and
administrative
|
|
29,060
|
|
18,847
|
|
2,877
|
Fulfillment
|
|
4,062
|
|
(63)
|
|
(10)
|
Sales and
marketing
|
|
2,221
|
|
360
|
|
55
|
Total
|
|
39,312
|
|
21,038
|
|
3,211
|
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,
2020
|
|
March
31,
2021
|
|
|
RMB
|
|
RMB
|
|
US$
|
Reconciliation of
Net Loss to Adjusted Net Income:
|
|
|
|
|
|
|
Net loss
|
|
(13,238)
|
|
(3,972)
|
|
(606)
|
Add: Share-based compensation
|
|
39,312
|
|
21,038
|
|
3,211
|
Adjusted net
income
|
|
26,074
|
|
17,066
|
|
2,605
|
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 RMB6.5518 to US$1.00, the exchange
rate in effect as of March 31, 2021 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 are 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.
Income tax expense for the first quarter of 2021
was RMB3.2 million (US$0.5 million), compared to RMB3.1 million in
the same period of 2020. The Company's effective tax rate was
changed primarily due to changes in the profitability of its
subsidiaries that have different tax rates, including
non-deductible share-based compensation expenses, and increased
valuation allowance as the Company will not be able to utilize tax
loss carry forwards generated by certain unprofitable
subsidiaries.
5.
As of March 31, 2021, the balance of long-term
investment mainly represented equity securities with readily
determinable fair value, which was remeasured based upon market
price at each period end and recorded the unrealized changes in
Financial (expense)/income, net, in the Unaudited Condensed
Consolidation Statements of Comprehensive Income/(loss).
|
View original
content:http://www.prnewswire.com/news-releases/yunji-announces-first-quarter-2021-unaudited-financial-results-301300641.html
SOURCE Yunji Inc.