Yunji Inc (YJ) 2024 Q3 法說會逐字稿

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. Kaye Liu, Investor Relations Director of the company. As a reminder, this call is being recorded. Now I would like to hand the conference over to our first speaker today, Ms. Kaye Liu, IRD of Yunji. Please go ahead, ma'am.

女士們、先生們，晚上好。感謝您的支持，歡迎參加雲集 2024 年第三季財報電話會議。今天與我們一起的還有董事長兼執行長肖尚略女士；崔葉青先生，資深財務總監；以及公司投資人關係總監劉凱女士。提醒一下，本次通話正在錄音。現在我想將會議交給今天的第一位演講者，雲集 IRD 劉凱女士。請繼續，女士。

Hello, everyone. Welcome to our third-quarter 2024 earnings call. Before we start, please note that the 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 core market operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors of Yunji and its industry.

大家好。歡迎參加我們的 2024 年第三季財報電話會議。在我們開始之前，請注意，電話會議將包含《1995年私人證券訴訟改革法》所定義的前瞻性陳述，這些陳述基於我們當前的預期和核心市場運營條件，並與涉及已知或未知風險、不確定性和雲集及其行業的其他因素的事件有關。

These forward-looking statements can be identified by terminologies such as will, expects, anticipates, continue, or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to our latest document filed with US SEC. Any forward-looking statement that we make on this call are based on assumptions as of today and are expressly qualified in the entirely by cautionary statements, risk factors, and details of the company filing with SEC. Yunji does not undertake any obligation to update the statement except as required under applicable law. With that, I will now turn over to Shanglue Xiao, Chairman and CEO of Yunji.

這些前瞻性陳述可以透過諸如將、預期、預期、持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，請參閱我們向美國證券交易委員會提交的最新文件。我們在本次電話會議上所做的任何前瞻性陳述均基於今天的假設，並完全受到警告聲明、風險因素和公司向美國證券交易委員會提交的文件細節的明確限制。除適用法律要求外，雲集不承擔更新本聲明的任何義務。現在我將把發言權交給雲集董事長兼執行長肖尚略。

(spoken in foreign language)

（用外語說）

(interpreted) Hello, everyone, and welcome to Yunji's third-quarter 2024 earnings call.

(翻譯)大家好，歡迎參加雲集 2024 年第三季財報電話會議。

(spoken in foreign language)

（用外語說）

(interpreted) So let me start with a significant milestone in our company's growth. On November 8, we broke ground on our new headquarters, the Yunji Innovation Center. These 15 new campus strategically located in the heart of the economic and technology development zone represent more than just a new office space. It is designed to be an integrated facility that brings together our marketing, training, R&D, and operational teams under one roof.

(翻譯) 那麼，讓我先來談談我們公司發展的一個重要里程碑。11月8日，我們的新總部－雲集創新中心動工興建。這 15 個新校區位於經濟技術開發區的中心位置，其意義不僅僅在於新的辦公空間。它旨在成為一個綜合設施，將我們的行銷、培訓、研發和營運團隊聚集在一個屋簷下。

The center will serve as a incubator for our expanding health and beauty brands while embodying our corporate culture and vision for the future. We secured this property at an attractive valuation in the second quarter this year, which aligns with our strategy of strategic asset diversification to strengthen our market position and optimize returns in today's dynamic environment.

該中心將成為我們不斷成長的健康和美容品牌的孵化器，同時體現我們的企業文化和未來願景。我們在今年第二季以有吸引力的估值獲得了這處房產，這符合我們的戰略資產多元化策略，以加強我們的市場地位並在當今動態的環境中優化回報。

(spoken in foreign language)

（用外語說）

(interpreted) In line with our -- with the global wellness trend, we are reinforcing our decision to health and wellness as a key pillar of our 10-year strategy. Our mission is to democratize access to healthy living, particularly in the organic food space. While organic products traditionally come with premium price tags, we've leveraged our procurement expertise to make this products more affordable without compromising quality.

(翻譯) 根據我們的全球健康趨勢，我們正在加強將健康和保健作為我們十年戰略重要支柱的決定。我們的使命是讓健康生活更民主化，特別是在有機食品領域。雖然有機產品通常價格不菲，但我們利用我們的採購專業知識，使這些產品更實惠，同時又不影響品質。

Our team has travelled nationwide to discover and connect with top-notch health product supply chain, acting as the eyes for our consumers by ensuring true traceability, authentic experiences, and genuine assurance. Additionally, we've established a robust quality control process through our proprietary (technical difficulty) health certification system, which includes random sections of certified products, even after they received certification.

我們的團隊走遍全國各地，尋找並聯繫一流的保健產品供應鏈，作為消費者的眼睛，確保真正的可追溯性、真實的體驗和真正的保證。此外，我們透過專有的（技術難度）健康認證系統建立了強大的品質控制流程，其中包括認證產品的隨機部分，即使在獲得認證之後也是如此。

These initiatives have garnered positive feedback from our users. For example, our Autumn Moon Pears have become an annual favorite from many parents who eagerly return each October to make their family purchases.

這些舉措獲得了我們用戶的正面回饋。例如，我們的秋月梨已成為許多家長一年一度的最愛，他們每年十月都會熱切地回來為家人購買。

(spoken in foreign language)

（用外語說）

(interpreted) We have also made significant progress in our offline expansion. In July, we launched our first wellness store, featuring traditional Chinese medicine practices. This initiative has helped us tap into the growing demographic for customers aged 41 to 55 through word-of-mouth referrals in our standardized offline systems. We've successfully replicated this business model with our second location opening in October.

(翻譯)我們在線下擴張方面也取得了重大進展。7月份，我們推出了第一家健康商店，主打傳統中醫藥療法。這項措施幫助我們透過標準化線下系統的口耳相傳，挖掘出日益增長的 41 至 55 歲客戶群。我們已於十月開設第二家門市，並成功複製了這個商業模式。

(spoken in foreign language)

（用外語說）

(interpreted) Our private-label brand SUYE has celebrated the 14th successful year in the beauty arena. In November, our accumulated sales on the platform have included RMB100 million for the year. We are particularly excited about our expansion in the premier anti-aging segment, where we align ourselves with top global brands and consistently launched outstanding products within our age recovery series. The upcoming release of specialized eye care product marked another significant advancement in our high-end eye care lineup.

(翻譯) 我們的自有品牌SUYE在美容領域成功度過了第14年。截止11月，我們平台全年累計銷售額已突破1億元。我們對在頂級抗衰老領域的擴張感到特別興奮，我們與全球頂級品牌結盟，並在我們的抗衰老系列中不斷推出優秀的產品。即將推出的專業眼部護理產品標誌著我們高端眼部護理系列的另一個重大進步。

(spoken in foreign language)

（用外語說）

(interpreted) On the technology front, digitalization is vital for advancing fast-moving consumer goods industry. Building the modern marketing infrastructure requires effective big data strategy. We are pushing forward with the development of an innovative digital platform powered by AI tools that support the integration and sharing of public resources on trading platforms. Our AI applications focused on improving customer service, generating content, sharing materials, and delivering educational treatments, which help lower costs while enhancing operational efficiency and service reliability.

(翻譯) 在技術方面，數位化對於推動快速消費品產業發展至關重要。建構現代行銷基礎設施需要有效的大數據策略。我們正在推動以人工智慧為基礎的創新數位平台建設，支援交易平台上公共資源的整合與共享。我們的人工智慧應用專注於改善客戶服務、產生內容、共享材料和提供教育治療，有助於降低成本，同時提高營運效率和服務可靠性。

(spoken in foreign language)

（用外語說）

(interpreted) So looking ahead, we will continue to drive innovation, enhance our core competence, and strive to create greater social value for Chinese families. With that, I will hand it over to Mr. Cui, our Senior Financial Director, to go through the financial results.

(翻譯) 展望未來，我們將持續推動創新，提升核心競爭力，並努力為華人家庭創造更大的社會價值。說完這些，我將把會議交給我們的高級財務總監崔先生來審查財務結果。

Thank you, Shanglue. Hello, everyone. Before I go through our financial results, please note that all numbers start in the following remarks are in RMBterms and all comparisons and percentages change a year-over-year basis unless otherwise noted.

謝謝你，尚略。大家好。在我介紹我們的財務表現之前，請注意，以下備註中的所有數字均以人民幣計算，且所有比較和百分比均按年變化，除非另有說明。

During the third quarter of 2024, we faced the market dynamic that impacts our operations. Nevertheless, our financial position enables us to support our strategic initiatives. We continuously evaluate the profitability of our -- of both new and exciting business lines, making informed adjustment in response to evolving market conditions. This strategy enable us to uphold a solid financial foundation amidst a changing business environment.

2024 年第三季度，我們面臨著影響我們營運的市場動態。儘管如此，我們的財務狀況使我們能夠支持我們的策略舉措。我們不斷評估新興業務線的獲利能力，並根據不斷變化的市場條件做出明智的調整。這項策略使我們能夠在不斷變化的商業環境中保持穩固的財務基礎。

During the quarter, we observed a notable improvement in our comparables, underscoring our dedication to effective cash management. Additional, we successful narrowed our operating and net losses, reflecting our commitment to fast and sustainable growth. At the same time, we refined our product offering and optimized our supply network to better meet customer demand. Looking ahead, we will continue to carefully seek growth opportunities while prioritizing our financial stability.

在本季度，我們觀察到可比性顯著改善，凸顯了我們致力於有效現金管理的決心。此外，我們成功縮小了營業虧損和淨虧損，反映了我們對快速永續成長的承諾。同時，我們改進了產品供應，優化了供應網絡，以便更好地滿足客戶需求。展望未來，我們將繼續謹慎尋找成長機會，同時優先考慮財務穩定。

Now, let's take a close look at our financials. Total revenue was RMB86.6 million compared to RMB145.1 million a year ago. Revenue from sales of merchandise were RMB17 million, and the revenues from our marketplace business were RMB14.8 million. Changes were mainly due to softer consumer confidence and ongoing refinements to our product range across all patrons.

現在，讓我們仔細看看我們的財務狀況。總收入為人民幣8,660萬元，去年同期為人民幣1.451億元。商品銷售收入為人民幣1,700萬元，市場業務收入為人民幣1,480萬元。變化主要是由於消費者信心減弱和我們針對所有顧客的產品系列不斷改進。

Furthermore, the optimization of our supplier and merchant network also had a short-term effect on sales. Despite these changes, our gross margin remained relatively strong at 54.1%, mainly due to continued customer loyalty towards our product labels and our effective product creation strategy.

此外，我們的供應商和商家網路的最佳化也對銷售產生了短期影響。儘管發生了這些變化，我們的毛利率仍然保持相對強勁，為 54.1%，這主要歸功於客戶對我們的產品標籤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 was RMB17.2 million compared to RMB25.6 million a year ago. The decrease was mainly due to lower warehousing and logistics costs resulting from decreased merchandise sales as well as a reduced personnel costs from staffing optimization.

現在，讓我們來看看我們的營運費用。履行費用為人民幣1,720萬元，去年同期為人民幣2,560萬元。下降的主因是商品銷售下降導致倉儲及物流成本降低，以及人員配置優化導致人員成本減少。

Sales and marketing expense decreased to RMB19.3 million from RMB29.6 million a year ago. This was primarily a result of a decline in management fee.

銷售及行銷費用由去年同期的2,960萬元減少至1,930萬元。這主要是由於管理費下降所致。

Technology and content expense were RMB11.6 million compared to RMB13.9 million a year ago. This was largely due to lower personnel costs from staffing optimizations.

科技與內容支出為人民幣1,160萬元，去年同期為人民幣1,390萬元。這主要是由於人員配置優化導致人員成本降低。

General and administrative expense were RMB25.8 million compared to RMB28.1 million a year ago. This was mainly due to a reduction in professional sales.

一般及行政開支為人民幣2580萬元，去年同期為人民幣2810萬元。這主要是由於專業銷售的減少。

Total operating expense in the third quarter decreased to RMB73.9 million from RMB97.2 million in the same period of 2023. Loss from operations was RMB26.2 million compared to RMB30.3 million a year ago while net loss was RMB30 million compared to RMB34.8 million while adjusted net loss was RMB29.5 million compared to RMB34 million a year ago. Basic and the diluted net loss per share attributable to ordinary shareholders were both RMB0.02 compared to RMB0.02 in the same period of 2023.

第三季總營業費用從 2023 年同期的 9,720 萬元人民幣減少至 7,390 萬元人民幣。營業虧損為2620萬元人民幣，去年同期為3,030萬元；淨虧損為3,000萬元人民幣，去年同期為3,480萬元；調整後淨虧損為2,950萬元人民幣，去年同期為3,400萬元人民幣。歸屬於普通股股東的每股基本及稀釋淨虧損均為人民幣0.02元，2023年同期為人民幣0.02元。

Turning to liquidity, as of September 30, 2024, we had a total of RMB268.4 million in cash and cash equivalents, restricted cash, and short-term investments on our balance sheet. Our liquid assets are sufficient to cover our payable obligations and we did not hold any long-term bank loans or debit on our balance sheet.

談到流動性，截至 2024 年 9 月 30 日，我們的資產負債表上共有現金和現金等價物、受限現金和短期投資人民幣 2.684 億元。我們的流動資產足以支付我們的應付債務，我們的資產負債表上沒有任何長期銀行貸款或借記。

In addition, we are dedicated to making the most of our working capital and smartly managing our assets to better support our operations. Looking forward, we are dedicated to improving our operational efficiencies and adjusting our strategies to effectively navigate the changing market landscape.

此外，我們致力於充分利用我們的營運資金並明智地管理我們的資產，以更好地支持我們的營運。展望未來，我們致力於提高營運效率並調整策略，以有效應對不斷變化的市場格局。

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

我們相信，透過不斷創新和改進我們的產品，庫存管理狀況的改善和成本優化將使我們為進一步的成長做好準備。我們相信，我們能夠增強我們的動力並創造長期股東價值。今天的準備發言到此結束。接線員，我們現在可以回答問題了。

(Operator Instructions) Ethan Yu, FirsTrust.

(操作員指示) Ethan Yu，FirsTrust。

(spoken in foreign language)

（用外語說）

Let me translate it for myself. Thank you for taking my question. My question is about expanding our offline activities at this point of time. What is the main difference of offline stores and online e-commerce business? And how would these two things be combined in the future? Could you share more color on this? Thank you

讓我自己翻譯一下。感謝您回答我的問題。我的問題是關於目前如何擴大我們的線下活動。線下商店和線上電子商務的主要區別是什麼？未來這兩件事會如何結合呢？能就此分享更多細節嗎？謝謝

(spoken in foreign language)

（用外語說）

(interpreted) Thank you for your question. Firstly, regarding market demand and target customers, offline wellness stores are an extension of the Yunji's existing customer base. Over the past 9 years -- and next year is the 10 years since Yunji's establishment. Some of our earliest customers, such as young mothers, have now transitioned into the key demographics for offline wellness services, which is the 40 to 55 age group. By continuously addressing user needs, we aim to align with the development of the aging economy, broaden Yunji's customer base, and truly provide services for the entire family.

（翻譯）感謝您的提問。首先，從市場需求和目標客戶來看，線下健康店是雲端集現有客戶群的延伸。9年過去了，明年就是雲集成立10週年。我們最早的一些客戶，例如年輕的母親，現在已經轉變為線下健康服務的主要人群，即 40 至 55 歲年齡層的人。我們持續關注用戶需求，順應老齡經濟發展，拓展雲集用戶群，真正實現全家庭服務。

(spoken in foreign language)

（用外語說）

(interpreted) The offline wellness business differs significantly from online marketing. We focus on offline communities within the 500-meter radius, combining ground promotion with online campaigns. This approach allows us to receive user feedback more directly and promptly during the service process.

（解釋）線下健康業務與線上行銷有很大不同。我們將重點放在線下500公尺範圍內的社區，將地面推廣與線上活動結合。這樣的做法使得我們在服務過程中能夠更直接、更及時地收到使用者的回饋。

(spoken in foreign language)

（用外語說）

(interpreted) In the future, after establishing loyalty and trust and on offline wellness users, we plan to integrate online sales and services. This is especially true for the promotion of our own brands and organic food products. The synergy between our people network and lab network will deliver exciting opportunities for our curated and health-focused business lines.

(翻譯) 未來，在建立線下健康用戶的忠誠度和信任度後，我們計劃整合線上銷售和服務。這對於我們自己的品牌和有機食品的推廣尤其如此。我們的人員網絡和實驗室網絡之間的協同作用將為我們精心策劃的、以健康為中心的業務線帶來令人興奮的機會。

(spoken in foreign language)

（用外語說）

(interpreted) So thank you for your question.

（翻譯）感謝您的提問。

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

目前沒有其他問題。問答環節到此結束，我想將會議交還給管理階層，以便他們發表結束語。

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

感謝您今天加入我們。如果您還有任何其他問題，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 today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演示，現在您可以斷開連接了。

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.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。