Yunji Inc (YJ) 2024 Q2 法說會逐字稿

Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's second quarter 2024 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. As a reminder, this conference call is being recorded. Now I would like to turn the conference over to our first speaker, Ms. Kaye Liu, IRD of Yunji. Please go ahead, ma'am.

早安，晚上好，女士們先生們。感謝您的耐心等待，歡迎參加雲集 2024 年第二季財報電話會議。今天與我們在一起的有董事長兼執行長肖尚略先生；崔業清先生，高級財務總監；本公司投資人關係總監劉凱女士。提醒一下，本次電話會議正在錄音中。現在我想請我們的第一位發言人，雲集稅務局的Kaye Liu女士來發言。請繼續，女士。

Hello, everyone. Welcome to our second quarter 2024 earnings call. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and current market operating conditions, and relate to events that involve known and unknown risks, uncertainties and other factors of the Yunji's industry.

大家好。歡迎參加我們的 2024 年第二季財報電話會議。在我們開始之前，請注意，本次電話會議將包含1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，這些陳述基於我們當前的預期和當前的市場運營狀況，並與涉及已知和未知風險的事件有關、雲集產業的不確定性等因素。

These forward-looking statements can be identified by terminologies such as will, expect, anticipate, continue or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to our related documents filed with US SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and are expressly qualified is entirely by cautionary statements, risk factors and details of the company's filings with the SEC. Yunji do not undertake any obligation to update these statements, expect as required under applicable law.

這些前瞻性陳述可以透過意願、期望、預期、繼續或其他類似表達等術語來識別。有關這些風險和不確定性的詳細討論，請參閱我們向美國 SEC 提交的相關文件。我們在本次電話會議中所做的任何前瞻性陳述均基於截至今天的假設，並且完全符合警告性陳述、風險因素和公司向 SEC 提交的文件的詳細資訊。除適用法律要求外，雲集不承擔更新這些聲明的任何義務。

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

下面我請雲集董事長兼執行長肖尚略發言。

(interpreted) Hello, everyone. Welcome to Yunji's second quarter 2024 earnings call. Yunji has been operating for nine years. During this time, we have our users grown from new parents to those welcoming a second child or entering new life stages. Our goal is to be a long-term partner for our users, supporting the health of their families. In light of China's aging population and the zero economy, we are looking to expand our user base further.

（譯）大家好。歡迎參加雲集 2024 年第二季財報電話會議。雲集已經運作九年了。在此期間，我們的用戶從新手父母成長為即將迎來二胎或進入新人生階段的用戶。我們的目標是成為用戶的長期合作夥伴，支持他們家人的健康。鑑於中國人口老化和零經濟，我們希望進一步擴大我們的用戶群。

Now let's discuss some of our ongoing initiatives as part of our initiatives to provide our users with a holistic health solution, we plan to expand our presence into off-line communities and establish wellness spaces, bringing our health care product therapy to consumers.

現在讓我們討論我們正在進行的一些舉措，作為我們為用戶提供整體健康解決方案舉措的一部分，我們計劃將我們的業務擴展到線下社區並建立健康空間，將我們的保健產品療法帶給消費者。

In July, we opened our first offline store, focusing on traditional Chinese medicine and awareness. This marks a new chapter for us in the health sector. The offline store will strengthen the connection between our online and offline services and lay the groundwork for expanding our customer base.

7月，我們開設了第一家線下商店，專注於中醫和認知。這標誌著我們衛生領域的新篇章。線下店將加強我們線上線下服務的連接，為擴大我們的客戶群奠定基礎。

We aim to create a word-of-mouth network based on low committees offering richer services and expand our target customer groups to those aged 41 to 55. This demographic values person know connections and it can help us attract quality customers through referrals.

我們的目標是建立一個基於低委員會的口碑網絡，提供更豐富的服務，並將我們的目標客戶群擴展到41歲至55歲。這種人口統計重視人脈關係，它可以幫助我們透過推薦吸引優質客戶。

In addition to our offline expansion, we plan to increase more organic grain and health products. We remain committed to our product selection criteria. We do not offer a mediocre product or attempt to be or encompassing platform. In fact, we carefully to quality products at reasonable prices and ensure value for our users. This approach allows our service managers to earn a fair profit margin.

除了線下擴張之外，我們還計劃增加更多有機穀物和保健品。我們仍然致力於我們的產品選擇標準。我們不提供平庸的產品或試圖成為或包容的平台。事實上，我們精心以合理的價格提供優質的產品，確保為我們的用戶帶來價值。這種方法使我們的服務經理能夠賺取公平的利潤率。

Since our founding, we have focused on quality and an expensive but curated product selection strategy. We use data-driven metrics to evaluate and adjust our product launch cycles based on our user feedback. Additionally, we emphasize product traceability beyond our private label brand, we will visit the origins and factories of the key partner brands, especially in food and health.

自成立以來，我們一直專注於品質和昂貴但精心策劃的產品選擇策略。我們使用數據驅動的指標根據使用者回饋來評估和調整我們的產品發布週期。此外，我們強調自有品牌以外的產品可追溯性，我們將參觀主要合作品牌的原產地和工廠，特別是在食品和健康領域。

We encourage our managers to lead teams in these traceability efforts to understand the production processes of quality products. Personally, and with various regions across the country, multiple times each month to share my experience and build trust with our users and the service providers.

我們鼓勵我們的經理帶領團隊進行這些可追溯性工作，以了解優質產品的生產過程。就我個人而言，以及與全國各地的不同地區，每個月都會多次分享我的經驗並與我們的用戶和服務提供者建立信任。

Moving onto another important area, our beauty business. In the beauty sector of our private label brand, SUYE, Yunji celebrated its 14th anniversary. Over the years, SUYE has grown alongside our loyal users. Our product development continues to focus on antiaging solutions, where we try to create exceptional products, antiaging is a high-end sector that has our technology and raw materials.

轉向另一個重要領域，我們的美容業務。在我們的自有品牌SUYE的美容領域，雲集慶祝了其成立14週年。多年來，SUYE 與我們的忠實用戶一起成長。我們的產品開發繼續專注於抗衰老解決方案，我們試圖創造卓越的產品，抗衰老是一個擁有我們技術和原材料的高端領域。

We have developed a comprehensive product line, including UV resistance sunscreens, collagen supplement and eye care products. We are forming a complete anti-aging metrics to meet users' diverse needs.

我們開發了全面的產品線，包括抗紫外線防曬霜、膠原蛋白補充劑和眼部護理產品。我們正在形成完整的抗衰老指標，以滿足用戶多樣化的需求。

Another key number of focus for us is marketing innovation. We are also innovating in our marketing efforts. We are combining our technology and AI development with short video content creation. GenAI content no longer worked in the short video era, we revamped pre-aging unit content is key to driving traffic. We are seizing this opportunity to explore new avenues in our short video projects.

我們關注的另一個關鍵數字是行銷創新。我們也在行銷工作上進行創新。我們正在將我們的技術和人工智慧開發與短影片內容創作相結合。GenAI內容在短視頻時代不再起作用，我們改造了預老化單元內容是推動流量的關鍵。我們正在抓住這個機會，探索短影片專案的新途徑。

Our goal is to nurture talent by teaching users how to create original content. We provide AI support and share marketing skills to help them become distinctive content creators. As in time, we are enhancing our service capabilities to also content creators, more resources and useful tools.

我們的目標是透過教導使用者如何創建原創內容來培養人才。我們提供人工智慧支援並分享行銷技巧，幫助他們成為與眾不同的內容創作者。隨著時間的推移，我們正在增強對內容創作者的服務能力，提供更多資源和有用的工具。

While the challenges remain, we are committed to our launch and strategic goals, we are focused on improving our operations and adapting to the evolving market landscape. With that, I will turn the call over to Mr. Cui, our Senior Financial Director, to go through the financial results.

儘管挑戰仍然存在，但我們致力於我們的發布和策略目標，我們專注於改善我們的營運並適應不斷變化的市場格局。接下來，我將把電話轉給我們的高級財務總監崔先生，以查看財務業績。

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

好的。謝謝你，尚略。大家好。在查看我們的財務表現之前，請注意，除非另有說明，以下備註中所述的所有數字均以人民幣計價，所有比較和百分比變化均以同比為基礎。

During the second quarter of 2024, we encountered some market dynamics that influenced our operations. However, our current financial positions allow us to support our strategic initiatives as we regulates the profitability of both new and existing business lines, making thoughtful adjustments in response to market changes. This approach helps us maintain a stable financial position in a shifting business landscape.

2024 年第二季度，我們遇到了一些影響我們營運的市場動態。然而，我們目前的財務狀況使我們能夠支持我們的策略舉措，因為我們調節新業務線和現有業務線的獲利能力，並根據市場變化做出深思熟慮的調整。這種方法有助於我們在不斷變化的商業環境中保持穩定的財務狀況。

While we continue to refine our inventory management protocols, which contribute to a gross margin of 46.6%, we are also focused on optimization our product range and supplier network to better align with customer preferences. As we move forward, we will continue to pursuing growth opportunities prudently while ensuring our financial stability.

在我們繼續完善庫存管理協議（毛利率達到 46.6%）的同時，我們也專注於優化我們的產品範圍和供應商網絡，以更好地滿足客戶偏好。在前進的過程中，我們將繼續審慎地尋求成長機會，同時確保財務穩定。

Now let's take a close look at our financials. Total revenues were RMB106 million compared to RMB167.1 million a year ago. Revenues from sales of merchandise were RMB83 million and the revenues from our marketplace business were RMB21.1 million. The changes were primarily driven by softer consumer confidence and ongoing adjustments to our product range across all categories.

現在讓我們仔細看看我們的財務狀況。總收入為人民幣 1.06 億元，去年同期為 1.671 億元。商品銷售收入為人民幣8,300萬元，市場業務收入為2,110萬元。這些變化主要是由於消費者信心減弱以及我們所有類別的產品系列不斷調整。

Additionally, the optimization of our supplier and merger network contribute to a short-term impact on sales. Despite these changes, our gross margin remained relatively strong at 46.6%. This strength is attributed to continued customer loyalty towards our private labels and our effective product creation strategy.

此外，我們的供應商和合併網路的最佳化也有助於對銷售產生短期影響。儘管發生這些變化，我們的毛利率仍然相對較高，達到 46.6%。這種優勢歸功於客戶對我們自有品牌的持續忠誠度以及我們有效的產品創造策略。

Now let's take a look at our operating expense. Fulfillment expense were RMB20.7 million compared to RMB29.9 million a year ago, this was mainly due to low warehousing and logistics costs resulting from decreased merchandise sales as well as reduced personnel cost from staffing optimization.

現在讓我們來看看我們的營運費用。配送費用為人民幣 2,070 萬元，而去年同期為人民幣 2,990 萬元，這主要是由於商品銷售下降導致倉儲和物流成本較低，以及人員配置優化降低了人員成本。

Sales and marketing expense decreased to RMB21.7 million from RMB33.4 million a year ago. This was primarily a result of a decline in member management fee. Technology and content expense was RMB12.2 million compared to RMB14.3 million a year ago. This was largely due to lower personnel costs from staffing optimizations and a reduction in server service cost.

銷售及行銷費用從去年同期的 3,340 萬元下降至 2,170 萬元。這主要是由於會員管理費下降所致。科技和內容費用為人民幣 1,220 萬元，去年同期為 1,430 萬元。這主要是由於人員配置優化降低了人員成本以及伺服器服務成本的降低。

General and administrative expense were RMB18.7 million compared to RMB33.2 million a year ago. This was mainly due to a reduced allowance for credit loss and lower personnel costs from staffing adjustments. Total operating expense in the second quarter decreased to RMB73.3 million from RMB110.8 million in the same period of 2023. Loss from operations were RMB23.1 million compared to RMB11.8 million a year go.

一般及行政費用為 1,870 萬元，去年同期為 3,320 萬元。這主要是由於信貸損失備抵減少以及人員配置調整帶來的人員成本降低。第二季總營運費用從2023年同期的人民幣1.108億元下降至人民幣7,330萬元。營運虧損為 2,310 萬元，去年同期為 1,180 萬元。

Net loss was RMB11.9 million compared to RMB41.5 million a year ago, while adjusted net loss were RMB9.7 million compared with RMB39.8 million a year ago. Basic and diluted net loss per share attributed to ordinary shareholders were both RMB0.01 compared to RMB0.02 in the same period of 2023. Turning to liquidity. As of June 30, 2024, we had a total of RMB324.5 million in cash and cash equivalents, restricted cash and short-term investments on our balance sheet compared to RMB561.9 million as of December 31, 2023.

淨虧損為人民幣 1,190 萬元，去年同期為 4,150 萬元，調整後淨虧損為 970 萬元，去年同期為 3,980 萬元。歸屬於普通股股東的每股基本及攤薄淨虧損均為 0.01 元，而 2023 年同期為 0.02 元。轉向流動性。截至2024年6月30日，我們的資產負債表上的現金及現金等價物、限制性現金和短期投資共計人民幣3.245億元，而截至2023年12月31日為人民幣5.619億元。

Our liquidity assets were sufficient to cover our payable obligations, and we do not hold any long-term bank loans or debt on our balance sheet. In addition, we are dedicated to making the most of our working capital and smartly managing our assets to support our operations.

我們的流動性資產足以涵蓋我們的應付義務，且我們的資產負債表上沒有持有任何長期銀行貸款或債務。此外，我們致力於充分利用我們的營運資金並巧妙地管理我們的資產以支持我們的營運。

Looking ahead, we remain committed to enhancing our operational efficiencies and adapting our strategy to navigate the evolving market landscape. We believe that our ongoing improvements in inventory management and cost optimization will position us favorable for future growth as we continue to innovate and refine our product offerings. We are confident in our ability to regain moment and driving long-term value for our shareholders.

展望未來，我們仍然致力於提高營運效率並調整我們的策略以應對不斷變化的市場格局。我們相信，隨著我們不斷創新和完善我們的產品，我們在庫存管理和成本優化方面的持續改進將使我們有利於未來的成長。我們對重新獲得機會並為股東帶來長期價值的能力充滿信心。

This concludes our prepared remarks for today. Operator, we are now ready to take questions.

我們今天準備好的演講到此結束。接線員，我們現在準備好回答問題。

(Operator Instructions)

（操作員說明）

Ethan Yu, First Trust China.

Ethan Yu，第一信託中國。

Hi. Good evening. Thanks for taking my questions. I have a question about our business operation. Mr. Xiao just mentioned that you have participated in numerous product traceability efforts. Could you share more color from this experience? And how will these insights be applied to our product selection and operation at Yunji?

你好。晚安.感謝您回答我的問題。我對我們的業務運作有疑問。剛才肖總提到，你們參與了許多產品追溯工作。您能從這次經驗中分享更多的色彩嗎？這些見解將如何應用到我們雲集的產品選擇和營運中？

(interpreted) Thank you for your question. I think currently, of course, the contract almost every week for products traceability. In fact, there are many good merchants and the supply chains in China, especially for high demand and high repurchase rate products like meat, eggs and dairy.

（翻譯）謝謝你的提問。當然，我認為目前幾乎每週都會簽約進行產品追溯。事實上，中國有許多好的商家和供應鏈，尤其是肉奶等高需求、高復購率的產品。

However, we cannot simply rely on inspection reports, historical sales data and various promotional materials to confidently introduce those merchants to our platform. Only more authentic cost effective and healthy products which are better suited to the physique of the Chinese people can bring real value to our users. These require our team to explore any nutrients personally, they generate sharing material funding traceability activities can gain more consumer trust.

然而，我們不能簡單地依靠檢驗報告、歷史銷售數據和各種宣傳資料來自信地向這些商家介紹我們的平台。只有更正宗、高性價比、更健康、更適合中國人質的產品，才能為我們的用戶帶來真正的價值。這些都需要我們的團隊親自探索任何營養成分，他們產生的共享物質資助溯源活動可以獲得更多消費者的信任。

Additionally, along with off-line traceability, we can host more off-line salon and taking events, leveraging the advantages of a face-to-face communication to acquire loyal customers. Within such off-line salon and off-line traceability activities, we're going to create the products that are going to go to the deep heart of the consumers. And those products and the related materials are going to encourage the consumers to buy on our platform. Thank you for your question.

另外，結合線下溯源，我們可以舉辦更多的線下沙龍和接單活動，利用面對面溝通的優勢來獲取忠實客戶。透過這樣的線下沙龍、線下溯源活動，我們要打造出深入消費者內心的產品。這些產品和相關材料將鼓勵消費者在我們的平台上購買。謝謝你的提問。

Great. Thanks. I have no more questions.

偉大的。謝謝。我沒有更多問題了。

As there are no further questions at this time. I'd like to hand the call back over to the management for any closing remarks.

因為目前沒有進一步的問題。我想將電話轉交給管理階層以供結束語。

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

感謝您今天加入我們。如果您有任何其他問題，請隨時與我們聯繫，我們期待下個季度與您交談。再見。

The conference has now concluded. Thank you for attending. You may now disconnect.

會議現已結束。感謝您的出席。您現在可以斷開連線。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

此文字記錄中標記（翻譯）的部分是由現場通話中的口譯員說出的。口譯員由贊助本次活動的公司提供。