Q1 2024 Yunji Inc Earnings Call

June 11, 2024

Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by.

Good morning, and good evening, ladies and gentlemen.

Thank you for standing by and welcome to <unk> first quarter 'twenty 'twenty four earnings conference call.

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

Speaker Change: With us today are Mr. Shang, Hsiao, Chairman and Chief Executive Officer Mr.

Speaker Change: Mr Ya Qin chewy.

Senior financial director.

And Miss Kay Liu Investor Relations director of the company.

Speaker Change: As a reminder, this conference call is being recorded.

Speaker Change: Now I would like to hand, the conference will walk through our sports Speaker today Ms Kay Liu.

Speaker Change: The rest of the nation and director of the U N G.

Speaker Change: Please go ahead ma'am.

Kaye Liu: Hello everyone, welcome to our first quarter 2024 earnings call. Before we start, please note that this call will concern forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995 that are based on our current expectations and current market conditions and relate to events that involve known and unknown risks, uncertainties, and other factors of Yunji and its industry. These forward-looking statements can be identified by terminologies such as will, expect, anticipate, continue, or other similar expressions.

Kaye Liu: Hello, everyone and welcome to our first quarter earnings call before we start. Please note that you'd call out constitute forward looking statements within the meaning of 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.

Kaye Liu: For a detailed discussion of these risks and uncertainties, please refer to our related document filed with the U.S. SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and are expressly qualified entirely by cautionary statements, risk factors, and details of the company's filing with the SEC. We do not undertake any obligation to update this statement, except as required under applicable law. With that, I will now turn over to Shanglue Xiao, Chairman and CEO of Yunji.

Speaker Change: All right I'll, just go ahead and fees and other factors of the T&D industry.

Speaker Change: These forward looking statements can be identified by terminology such as well.

Speaker Change: Anticipate continue or other similar expressions for detailed discussion of these rates and uncertainties. Please refer to our related documents filed with SEC any forward looking statements that we make on this call are based on assumptions as of today and I frankly qualified entirely by closing these statements risks.

Factors and details of the company filing with SEC.

Speaker Change: <unk> does not undertake any obligation to update these statements expect as required under applicable law.

Sean: With that I will now turn over to Sean yourself, Chairman and CEO of <unk>.

Sean: Yeah.

Shanglue Xiao: Hello everyone, welcome to Yunji's first financial report conference in 2024.

Sean: Oh.

Speaker Change: I guess, how clean that up.

Speaker Change: <unk> Hello, everyone and welcome to <unk> first.

Unnamed: Hello everyone, welcome to Yunji's first hotel 2024 training school.

Speaker Change: 2024.

Speaker Change: Sure.

Shanglue Xiao: As the flagship of traditional e-commerce, we have maintained a stable trade rate in the economic operation. As users' desire for a better life continues to grow, we are more concerned about the future of e-commerce, the stability of the customer base, and the consumer preferences of the core users in order to achieve a more qualitative development.

Speaker Change: This is due to the challenging summer. Thank you.

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Shanglue Xiao: The first quarter is traditionally an off-peak season for e-commerce. We seized the opportunity to further refine our operations, allowing us to maintain a solid growth margin. As consumers' appetite for pursuing a better life intensifies, we are laser-focused on driving high-quality growth by stabilizing average order values and gaining deeper insights into our core users' consumption preferences.

Speaker Change: The first quarter is traditionally in off peak seasons for ecommerce, we see opportunity to further refine our operations allow us to maintain a solid gross margin as consumers' appetite for pursuing better lives intensify we are laser focused on driving high quality growth by.

Speaker Change: Analyzing average order values and is gaining deeper insights into our full year days cost assumption preferences.

Shanglue Xiao: In May this year, we celebrated the 9th anniversary of Yunji with our service providers, partners, and all employees. In the anniversary letter, we announced some exciting new projects, for example, to provide customers with a health-solving plan for the entire life cycle. We plan to build community health spaces in the community so that Yunji Health Products will have the opportunity to address consumers more directly. At the same time, these new projects aim to create more part-time and full-time jobs, so that we can serve our customers in the best way possible.

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Shanglue Xiao: In May, I celebrated Yunji's 9th anniversary alongside our service managers, planners, and employees. During the festivities, we unveiled several exciting new initiatives. One such initiative is our plan to provide our users with a holistic health solution. To realize this, we will extend our presence into offline communities and establish wellness spaces, bringing our healthcare products directly to consumers. These initiatives are set to generate both part-time and full-time employment opportunities, nurturing individual entrepreneurship through our top-tier retail services.

Speaker Change: I celebrate.

Nice anniversary alongside our service manager kind of an employee during the festivities, we unveiled several exciting new initiatives. One such initiative is our plan to provide our users with a holistic housing solution to really basically will then.

Speaker Change: Carlin into offline community and establish a wellness spacious, bringing our health care products directly to consumers. These initiatives are.

Speaker Change: To generate both part time and full time employment opportunity nurturing encourage entrepreneurship for our top tier REIT, how it does it.

Speaker Change: Okay amaze on silicon metal.

Speaker Change: So the pin pad. So you took the shrinking central sure surely you will see for the federal.

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Speaker Change: Mitchell.

Unnamed: [inaudible] We are also actively opening up external channels for cooperation, including content platforms, short video platforms, content creators, live broadcast platforms, etc.

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Unnamed: Our private label beauty brands Suye and P&S continue to roll out new products that are proven to be big hits. These products are specially formulated with ingredients that are tailored for mature skin, mirroring the effectiveness of the leading Western beauty brands. In terms of marketing, we are actively expanding our partnerships across a variety of external channels this year. Our approach includes creating engaging content on diverse content platforms, leveraging the power of short video platforms, and harnessing influencer marketing on live streaming platforms.

Speaker Change: Our private label beauty brands, so yeah in the P&L.

Speaker Change: Near term rollout new product that's proven to be.

Speaker Change: Manhattan.

Speaker Change: For that specially formulated ingredients that are tailored for mature screen mirroring the effectiveness of our leading less in beauty brands.

Speaker Change: In marketing, we are actually expanding our partnerships across a variety of asciano channels Ccs. Our approach includes creating engaging content on a diverse content platforms leveraging the power of the short video platforms.

Speaker Change: One is the influence of marketing on live streaming platform.

Unnamed: In the field of health, we will continue to combine advanced manufacturing technology, natural nourishing raw materials from the same source, and Yunji's health proofs. From the food side of the resident family, we will serve the health of the people through passive medical treatment. At the same time, Yunji will continue to innovate and improve the service experience of the vertical community, develop AI applications, and further promote a professional and comprehensive training system. We will train professional health nutritionists to provide health and political services in addition to products, so that every family has a dedicated health consultant.

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In terms of who know me the jockey, you'll try and yoda James cohort in the health care sector, we will continue.

Unnamed: In the healthcare sector, we will continue to streamline cutting-edge manufacturing technology and natural ingredients with medicinal properties to create products that further enrich our health supermarket metrics. Our goal is to transition Chinese families from a reactive approach to healthcare to a proactive one that emphasizes daily dietary enhancements. At the same time, we will continue to innovate, enhance the virtual community service experience, and deploy advanced AI applications. In addition, we will further evolve our training system to cultivate professional health nutritionists who provide value-added services beyond our product. Our mission is to ensure that every family has access to a professional health advisor.

Speaker Change: <unk> cutting edge manufacturing technology, and a natural ingredients with marathon for parties to create a product that a further enrich our house supermarket metrics. Our goal is to transition Chinese families.

Speaker Change: Our reactive approach to health care to a pure after one that emphasizes daily dietary enhancements as in time, we will continue to innovate and enhance the verde coming piece of his experience and deploy advanced AI applications. In addition, we will further evolve our.

Speaker Change: 20% to cultivate of her fashion, our house nutritionist, who provide value added services beyond <unk>. Our mission is to ensure that Arris family has access to a professional health advisor.

Unnamed: The clothing category has always been our short version. We have also met the needs of many users and service providers.

<unk> is a woman that done but for me. It just as you do your own Kool who found the Pudong Cumulus visual search I'm interested in the alarm wholesale well literally India prescription Lithophone cool yeah cost dollar. So again from a union mainly said, though there is a sort of option to gmail material tax if you hit your bullishness, saying you've got velocity.

Unnamed: Under the wave of mass short videos, we believe that the trend of Yunji's clothing category has also begun to arrive, and this will become an important part of Yunji's beauty track. This year, we combined short videos and live broadcasts to hold a fixed live broadcast on Yunji's official video account every week, focusing on clothing, modern beauty, food, and other categories to strengthen Yunji's beauty and add a more fashionable atmosphere to the material mechanism.

Speaker Change: <unk> made two could be cut into the walk to Darfur agenda.

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Unnamed: While apparel has historically been a less prominent sphere for us, we have seen increasing demand from users and service managers for a broader range of products in this category. With the emergence of the short video trend, we see a golden opportunity for Yunji's apparel category to become an integral component of our beauty segment. This year, we've embraced the integration of short videos and live streaming, hosting weekly live streams on Yunji's official YouTube channel.

Speaker Change: While apparel has historically been a lag coming into the CFO.

Speaker Change: We haven't seen increasing demand.

Speaker Change: And as a service manager for a broader range of product in this category with the emergency of the short video trend, we see a golden opportunity for EG apparel category to become an integral component of our beauty government TCA, we've embraced the integration of a short video.

Speaker Change: And the line screaming hosting weekly live streamed on ranges official channel well. Our primary focus is on apparel will also feature our beauty and in food categories to bolster <unk> image as a beauty brand. This approach allows us to infuse fashion into.

Unnamed: While our primary focus is on apparel, we also feature our beauty and food categories to bolster Yunji's image as a beauty brand. This approach allows us to infuse a sense of fashion into our offerings while ensuring they remain practical.

Speaker Change: Our all screen, while ensuring they remain practical.

Unnamed: All industries are facing new changes and challenges. The industry we are in charge of is no different.

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Shanglue Xiao: We believe that opportunities and challenges come together. Yunji maintains the spirit of entrepreneurship. As an e-commerce company that has been active in the WeChat ecosystem for nine years, we are rapidly catching up with the trend of video consumption. Through the past six months of video content creation and live-streaming exploration, we are gradually exploring a business model that is in line with Yunji's entrepreneurial genes. That is, to train video team leaders to produce and publish high-quality content on a large scale. In order to make delivery easier and communication more efficient, Yunji adapts to the new era and offers new skills to service providers. They can start a business with a mobile phone.

Speaker Change: As a companion Sydney hardly on Tongo, what's the what kind of total.

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Speaker Change: <unk> when you pursue Julian will tell you when the time, where you literally city hall tend on the sugar with him in the quarter sitting here towards the Chilean patient downtime on your leases using machine learning to be able to find out what you want that digital visualization agenda.

Shanglue Xiao: We recruited a number of people who are willing to become video team leaders to train them in the skills of delivery, short video, and live-streaming so that they have the new ability to keep up with the times. The video team leader incubation plan was tested in the first quarter, and it will continue in the second quarter.

Speaker Change: Okay.

Unnamed: Every industry is currently grappling with changes and challenges, and the new consumption industry in which we operate is no exception. However, we firmly believe that where challenges exist, opportunities also thrive.

Speaker Change: Every industry is currently grappling changes and challenges and the new consumption industry in which we operate is no exception. However, we firmly believe that were challenges is this the opportunity to also drive our E. G. We harnessed, our entrepreneurial spirit and average hour now.

Shanglue Xiao: At WeChat, we harness our entrepreneurial spirit, leverage our 9-year experience in the realm of social e-commerce within the WeChat ecosystem, and keep our finger on the pulse of video channel trends. Over the past six months, often exploring content creation and live streaming on video channels, we have gradually developed a business model that fully aligns with Yunji's entrepreneurial DNA. Our focus is on nurturing leaders in video channels who can produce and distribute high-quality content on a larger scale. To streamline product promotion and make communication more efficient, we equip our service managers with new skills, enabling them to run their business with nothing more than a mobile phone.

Speaker Change: Yeah experience in a realm of certain social e-commerce within the wechat ecosystem and keep our finger on the pulse of the video channel trends over the past six months off and exploring content creation and live streaming video channels. We have gradually develop a business model that fully aligns with <unk>.

Speaker Change: <unk> entrepreneurial DNA, our focus is on natural and leaders in their channels, who can produce and distribute high quality content on larger scale to streamline product promotion anime communication more efficient way is proof of our service managers with new skills, enabling them to.

Speaker Change: Our business with nothing more than a mobile phone.

Shanglue Xiao: We recruit aspiring ordinary people to become video channel leaders, providing them with training in creating product promotional short videos and live streaming, and helping them stay updated with new capabilities. Our video channel leader incubation program, which was piloted in the first quarter, is set for a more extensive rollout in the second quarter.

SRA: Well, a little quote SRA ordinary people to become video channel leaders, providing them with training and creating product promotional short videos and live streaming and having them stay updated with new capabilities.

Speaker Change: Our video channel leader Incubation program, which was piloted in the first quarter is that for a more extensive rollout in the second quarter.

Shanglue Xiao: In the era of micro-channels and pictures, we created Yunji. In the era of short videos, we will bring you a more vivid and effective version of Yunji. We hope to be a partner for users to achieve a healthy and beautiful life.

Speaker Change: Wishing towards the toggle is indeed, a serious Joan Keith I definitely congested known cause other than it will mature to me your horse.

Speaker Change: For Jim Jim called me, how similar the reach and community Iraq created is.

Shanglue Xiao: The WeChat community created Yunji, and now the advent of short videos promises to enrich it with greater vibrancy and efficiency. We aspire to be the trusted partner that empowers our users to lead a healthy and beautiful life.

Speaker Change: Now the advantage of shop videos.

Speaker Change: It is two in ratio in G with greater vibrancy and efficiency, we aspire to be the trusted partners and empowered our users to lead healthy and beautiful life.

Shanglue Xiao: With that, I will turn the call over to Mrs. Cui, our Senior Financial Director, to go through the financial results. Thank you, sir. Hello, everyone.

Speaker Change: The franchise, you've got to send me a <unk> woman, that's how we're going to get to your team we've got to figure out how it does.

Mr play: Then I will turn the call over to Mr play, our senior financial thereafter.

Speaker Change: All right.

Speaker Change: Thank you.

Yeqing Cui: Before I conclude our financial results, please note that all numbers that are in the following remarks are in R&D terms, and all comparisons and percentage changes are on a year-over-year basis, unless otherwise noted. During the first quarter of 2024, our operations remained relatively steady as we continued to bolster the core process underpinning our operations. Refinements to our inventory management protocols enabled us to sustain a consistent level of gross profit. Inventory management remains a strategic focal point, with vigilant monitoring of assorted product categories on a weekly or monthly basis to optimize stock levels.

Speaker Change: Hello, everyone.

Mr. Play: Before I turn our financial results. Please note that all numbers Scott.

Speaker Change: <unk> remarks.

Speaker Change: Lead times on that.

Patterson's authentic changes on a year over year basis, unless otherwise noted.

Speaker Change: They are in the first quarter of 2024 hour operations remained relatively steady as we continue to both total coal process underpinning our operations.

Speaker Change: Five months to our inventory management.

Speaker Change: Protocols.

Table at Tusa 10, a consistent level.

Speaker Change: Gross profit.

Speaker Change: Inventory management remains a strategic local port.

Operator: We will be dealing with a monitoring of a source in the product headquarters on a weekly or monthly attendance to optimize stock level. By doing so, we in-house utilization, while I said, while effectively managing our task force. At this time, we are actively making our task flow management more efficient.

Speaker Change: We will be children monitoring or assortment of product pet growth on a weekly or monthly attendance to optimize stock level.

Yeqing Cui: By doing so, we enhance the utilization of our assets while more effectively managing our cash flows. At the same time, we are actively making our cash flow management more efficient. Now let's take a close look at our financial results. Total revenues were 128 million, compared to 179 million a year ago. Revenues from sales of merchandise were 102 million, and revenues from our marketplace business were 24 million. The changes were primarily driven by ongoing refinements to our product range across all categories. This, coupled with the optimization of our supplier and merchant network, resulted in a shorter impact on sales. Despite these changes, our gross margin remained relatively solid at 49.4%.

Speaker Change: By doing so we enhance utilization of our S.

Speaker Change: While more efficiently more effectively managing our cash cost at the time, we are actively making our push for measurement and more efficient.

Operator: Now, let's take a close look at our financial total revenues were $108 million compared to $109 million a year ago. The revenues from sales are much larger than $102 million, and the revenue from our market effectiveness were $24 million. The changes were primarily driven by ongoing refinement to our products, range across all categories. The total with the optimization of our supplier and the merchant network results in the shorter impact on sales. Despite the changes, our growth margin remains relatively solid at $49.4%. This will due to some 10 customer loyalty towards our private labels and our effective product creation strategy.

Speaker Change: Let's take a closer look at our financials.

Speaker Change: Revenues were 128 million compared to 100.

Speaker Change: 39, many of your high school revenues for Ourself for most guys are hungry to billing and revenue for our marketplace business worked plenty of $4 million.

Speaker Change: Changes were primarily driven by ongoing refinements to our product range across all pet growth there coupled with the optimization of our supplier the merchant network results in the short term impact on ourselves.

Speaker Change: Despite these changes our gross margin remained relatively solid at her.

Speaker Change: 49, 4%.

Yeqing Cui: This was due to sustain customer loyalty towards our product labels and our effective product creation strategy. Now, let's take a look at our operation expenses. Perfume's expense was 22 million compared to 27 million a year ago. This was primarily driven by a decrease in warehousing and logistics expense due to lower merchandise sales. The total cost, resulting from Dyson Structure Optimization, decreased to $6 million from $13 million at the beginning of the year.

Speaker Change: This was due to a 10% customer loyalty towards our private labels and our effective product creation history now, let's take a look at our operating expense for tumors expense were 22 million compared to 27 million Yeah. That's cool.

Operator: Now, let's take a look at our approaching spend. The human expense were $22 million compared to $109 million a year ago. This will primarily be driven by a decrease in warehousing and logistics expense, which will lower much by sales and reduce the total cost, resulting from starting sector of myization. So, as a matching spend decrease, the two countries, $6 million from $13 million ago. This will cover a result of a decline in member management fee, partial offset by our increased new benefits for most expense. The technology and the context expense were $13.3 million compared to $13.4 million.

Speaker Change: This was primarily driven by a decrease in warehousing and logistics expense due to lower merchandise sales and reduced corporate costs.

Speaker Change: Often wrong staffing structure optimization.

Speaker Change: So as a marketing expense decreased to two.

Speaker Change: Two 6 million well below 10 million that's cool.

Yeqing Cui: This was primarily a result of a decline in membership fees, partially offset by an increase in business promotion expenses. Technology and contact expenses were $13.3 million compared to $13.4 million years ago. The decrease was mainly due to reduced service costs. General and administrative expenses were $14.3 million. 9 million compared to 50.2 million years ago.

Speaker Change: This was primarily a result of the card member management fee partially.

Partially offset by increased new business promotion expense.

Speaker Change: Larger and the contract expense were 13 3 million compared to 44.

Speaker Change: 4 million okay.

Operator: The decrease will mean a due to reduced the total cost. Generally, expenses were $14.9 million compared to $15.2 million ago. This will mean a due to the reduction in personal cost, resulting from back sector requirements, partial offset increase in the allowance for credit loss.

Speaker Change: The decrease was mainly due to reduced workover costs general and administrative expenses were 14 points.

Speaker Change #100: 9 million compared to $50 2 million. This was mainly due to the reduction in political comp results.

Yeqing Cui: This was mainly due to the reduction in fiscal costs resulting from stock prices, sectoral refinement, partial setback, increase in the allowance for credit loss, and total operation expense in the first quarter because you. $76 million from $85 million in the same period of 2023. Loss from operations was $9 million compared to income from operations of $1 million a year ago. Net income was $4 million compared with a net loss of $23 million years ago, while adjusted net income was $3 million compared with adjusted net loss of $27 million years ago. Basic and diluted net income per share attributable to ordinary shareholders or borrower compared with basic and diluted net We had a total of $505 million in cash and cash equivalents, restricted cash, and short-term investments on our balance sheet compared to $552 million on December 31. 2023.

Speaker Change #101: Just on the five months, partially offset by increase in the allowance for credit loss.

Operator: Total operation expense in the first quarter is equal to $16 million from $85 million in the same period of $20.3 million. Rocks are approaches were $9 million compared to income from operation a $1 million a year ago.

Speaker Change #102: Total operating expense in the fourth quarter to close to <unk>.

Speaker Change #103: 76 million from 85 million in the same period or Rockwell approaches one 9 million compared to income from accretion of 1 million yes.

Speaker Change #102: Yes.

Operator: Net income was $4 million compared with net loss of $23 million a while, at just net income was $3 million compared with just net loss of $2.3 million ago.

Speaker Change #102: Net income was 4 million compared with a net loss of <unk>.

Speaker Change #104: Plenty of 3 million escrow, while adjusted net income was <unk> 3 million compared to adjusted net loss.

Speaker Change #104: As I said a minute ago.

Speaker Change #105: Basic and diluted net income per share attributable to ordinary shareholders were putting up compared with basic and diluted net loss per share.

Speaker Change #106: Zero or 101 within pillar alternate country.

Speaker Change #107: Turning to liquidity.

Operator: Zhang, thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. When asking a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call.

Speaker Change #107: At March 31.

We have a total power hungry and finally in cash and cash equivalents restricted cash and short term investments on our balance sheet compared to bio homegrown, the 52 million or.

Speaker Change #107: At December 31.

Yeqing Cui: Our liquidated assets are sufficient to cover our payable obligations, and we do not hold any long-term bank loans or debits on our balance sheet. In addition, we are dedicated to making the most of our working capital and smartly managing our assets to better support our operations. To sum up, the first quarter made important progress on the road to realizing our long-term strategic goals. Our ongoing improvements in inventory management, along with our dedication to sustainable and effective asset management, are pivotal to this advancement. Moving forward, we will focus on further enhancing our efficiency and strengthening our company's resilience and adaptability. Our strategy positions us to effectively address future challenges and seize emerging opportunities in the evolving economic landscape.

<unk> hundred three.

Speaker Change #108: Our liquidity that's it.

Speaker Change #109: Sufficient to cover our payable obligations.

Speaker Change #110: Do not hold any long term tax law or debit on our balance sheet. In addition, we are dedicated to making the most of our working capital on a smartphone and managing our assets to better support our operation.

To sum up the first quarter make important progress along the road to realizing our long term strategy.

Speaker Change #111: Our ongoing improvements in human treatment regimens are always our dedication to for tenable and effective access management.

Pivotal to diesel development.

Speaker Change #112: Moving forward, we will focus on corner in halting our efficiency agenda.

Speaker Change #113: To strengthen our company is resilient.

Speaker Change #114: <unk> ability.

Speaker Change #115: Our strategy.

Speaker Change #116: Position us to effectively address neutral challenges.

Speaker Change #117: Emerging opportunities in the <unk>.

Bowling Samachar landscape.

Operator: This concludes our prepared remarks for today. Okay, we are now ready to take questions. Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad.

Speaker Change #118: This concludes our prepared remarks for today.

Speaker Change #119: Operator, we are now ready to take questions.

Speaker Change #120: Thank you.

Operator: We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. When asking a question, please state your question in Chinese first, then repeat your question in English for the convenience of everyone on the call. At this time, we will pause momentarily to assemble our roster. Our first question is from the line of Ethan Yu from First Trust Group, please.

Speaker Change #121: We will now begin the question and answer session.

Speaker Change #122: To ask a question you May press Star then one on your telephone keypad.

If youre using a speakerphone please pick up your handset before pressing the keys.

Speaker Change #122: To withdraw your question. Please press Star then two.

Speaker Change #123: When asking a question. Please state your question in Chinese first then repeat your question in English English for the convenience of everyone on the call.

Operator: At this time, we will pause momentarily to assemble our roster.

Speaker Change #124: At this time, we will pause momentarily.

Speaker Change #125: To assemble our roster.

Speaker Change #125: Yeah.

Ethan Yu: Our first question is from the line of Ethan Yu, from First Trust Group. Please go ahead.

Speaker Change #125: Okay.

Speaker Change #126: First question is from the line of.

Speaker Change #126: Ethan.

Speaker Change #127: First Trust group.

Please go ahead.

Speaker Change #127: Okay.

Ethan Yu: Hi Yiming, thank you for accepting my question. Just now, Mr. Xiao mentioned the short video and live broadcast. Can you share the progress of our company in detail? And what are the differences between Changming Yunji and other platforms? Hi, good evening, Mr. Yiming.

Speaker Change #127: Alright.

I think you're going to transition all the Q1 call.

Speaker Change #127: Okay. That's helpful.

Speaker Change #128: Goodbye assumption.

Speaker Change #129: From a gold producer to injector unfolds in the future.

So sometimes that comes in Q4.

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Ethan Yu: Thanks for taking my question. The management just mentioned our progress in short video and live streaming. Could you share more details about how we differ from other platforms in this area? Thank you.

Ethan Yu: Hi, good evening. Thanks for taking my question. The management just mentioned our progress in short-lived and live streaming. Could you share more details about how we differed from other platforms in this area?

Speaker Change #130: Hi, good evening, Thanks for taking my question.

Speaker Change #131: Management, just mentioned our progress in shop, maybe in the live streaming could you share more details about how we differ from other.

Speaker Change #131:

Speaker Change #132: In this area. Thank you.

Operator: Thank you.

Operator: Xin Shan, your question. Thank you for your question. First of all, we will select every commodity of an oil category, and you sure they are of course if I'll case.

So net net.

Unnamed: Thank you for your question.

Speaker Change #133: Thank you for your questions.

Unnamed: First of all, we have inherited the elite gene in the commodity sector. We are elite in terms of category and cost-effectiveness. We use low-priced and low-quality green soup, green soup goods, and drinks.

So he'll woman something that kids in addition that GE <unk> Jean <unk>.

Speaker Change #134: Digi key is around the matching.

Speaker Change #135: Matching the Hawker email.

Unnamed: Firstly, we will select every commodity of an oil category and ensure that they are cost-effective. We do not resort to selling low-priced, low-quality clearance items to draw traffic.

Firstly, we will select aric commodity often or a category issue.

Speaker Change #136: Sure they are of course.

Operator: Please do not resort to selling low price or holding clearance items to draw traffic. This is the only content creators, but also developers of numerous commodities. Our team engages from the inception of the project, actively participating in the treasurability of the origin, production, and selection of packaging materials. These hands-on approach equates us with a deeper understanding of the commodities and a more tangible worth of the entire commodity chain compared to other content producers.

Speaker Change #137: Wait to inaugurate thoughts here selling low priced low quality clearance items to draw traffic.

Unnamed: Secondly, we are not only short video content creators but also developers of a lot of products. Our team starts from the idea of the product, to the raw materials of the product, to the production, packaging, and selection. We know more about the products than other content producers, and we have more real materials with all product aspects.

Speaker Change #138: She is the lead on our muscle certain little taller than.

Speaker Change #139: Yes issued something like half Alpha over time based on time in the Lasalle cases seem to tend to the three year total syntax potash sandy.

Speaker Change #140: He should have since under control assumption.

Speaker Change #141: You can change some of the symptoms with that secondly, we are not only content creators, but also developers of numerous commodity our team engages from the inception of the pivot.

Unnamed: Secondly, we are not only content creators but also developers of numerous commodities. Our team engages from the inception of the DAX project, actively participating in the traceability of the origins, production, and selection of faculty materials. This hands-on approach creates a deeper understanding of the commodities and a more tangible grasp of the entire commodity chain compared to other content producers.

Speaker Change #142: That project actually participating in the traceability of the original production escalation of packaging materials date hands on approach creates as Wilson.

Speaker Change #143: Dave or understanding of the commodity and a more tangible glass of the entire commodity chain compared to other content producers.

Unnamed: In addition, at the most critical human level, Yunji's short video strategy, whether it is production or distribution of content, is based on digital, which helps the individual to start a business and also makes our content more inclusive.

Speaker Change #144: Hi, Renato frequent agenda, Dennis in the past with Intel is willing to they own a center has a firm dough.

Speaker Change #145: Though it's too early to Julie could you tell you you know when the lid on Iot cheerfully.

Operator: As the most critical human level injuries, the short video strategy in compiling both content production and distribution is rooted in an ordinary people's centric approach for still-peating individual entrepreneurship and rendering of our content more accessible. Thank you so much for your time, and also all these haven't differentiated us from other competitors.

Unnamed: At the most critical human level, Yunji's short video strategy, encompassing both content production and distribution, is rooted in an ordinary people-centric approach, facilitating individual entrepreneurship and rendering our content more accessible.

Speaker Change #146: As in most of the critical human level the increase.

Speaker Change #147: The short video strategy in comprising both content production and distribution is related in an ordinary people centric approach facilitating individual entrepreneurship and rendering our content more accessible.

Unnamed: And also, all these have been differentiated from each other.

Speaker Change #148: So you cannot compare the two that are tied and also all these have been differentially aided us from other competitive Sidney. Thank you for your question.

Unnamed: And also, all these have differentiated us from other competitors. Thank you for your question.

Operator: Thank you for your question.

Ethan Yu: Okay, I got it, Walker. Thank you.

Speaker Change #148: Okay got it okay. Thank you.

Speaker Change #148: Okay.

Operator: Thank you.

Speaker Change #148: Thank you.

Speaker Change #148: Okay.

Operator: Ladies and gentlemen, as there are no further questions at this time, I'd like to hand the conference back to the management for closing remarks. Thank you for joining us today.

Speaker Change #149: Ladies and gentlemen.

Operator: As there are no further questions at this time, I'd like to hand the conference back to the management for closing remarks.

Speaker Change #149: As there are no further questions at this time.

Management: I would like to hand, the conference back to the management for closing remarks.

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

Thank you for joining us today, please do not hesitate to contact us if you have any further questions and we looking forward to talk to.

Operator: Please do not hesitate to contact us if you have any further questions, and we looking forward to talking with you next quarter.

Speaker Change #151: Talk with you next quarter.

Operator: Bye.

Speaker Change #151: Okay.

Operator: Thank you.

Speaker Change #152: Thank you.

Operator: This conference is now concluded. Thank you for attending.

Operator: This conference is now concluded. Thank you for attending. You may now disconnect.

Speaker Change #153: This conference has now concluded.

Unnamed: [inaudible]

Speaker Change #154: Thank you for attending.

Operator: You may now disconnect. ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶ ¶

Speaker Change #155: You may now disconnect.