Q2 2024 Yunji Inc Earnings Call

August 23, 2024

good morning in good evening ladies and gentlemen thank you for standing by and welcome to ug's second quarter two thousand and twenty four earnings conference call with us today our mr shan leeves out chairman and cheap executive officer mr y queen to

Operator: Welcome to Yu Ji's second quarter 2024 earnings conference call. With us today, are Mr. Shanglue Xiao, Chairman, and Chief Executive Officer, Mr. Ye Quing Cui, Senior Financial Director, and Miss Kaye Liu, Investor Relations Director of the company. As a reminder, this conference call is being recorded.

Speaker Change: senior financial director and miss k lu investor relations director of the company

Kaye Liu: Now, I would like to turn the conference over to our first speaker, Miss Kaye Liu, IRD of Yu Ji. Please go ahead, ma'am.

Kay Lu: as a reminder this conference call is being recorded now i would like to turn the conference over totar first speaker miss kay luke ir of ug please go ahead ma'am

Kaye Liu: Hello, everyone. Welcome to our second quarter 2024 earnings call. Before we start, please note that it's cover content.

Kay Lu: hello everyone we lcome through our second quarter two thousand and twenty four earnings call before we start peaseno that is our content

Kaye Liu: Full looking statement within the meaning of the private security litigation for the act of 1935 that's based on our current expectations and current multi-approved conditions, and related investment involved known among non-risk, uncertainties, and other factors of unity and industry. This full looking statement can be identified by terminologies such as well, expass, anticipate, continue our other similar expressions for detailed discussion of these three general uncertainties. Since the first, our latest document filed with US SEC, any full looking statement that we make on this call based on assumptions that are today and are expressly qualified in the entirely bicultural statement, respect, and details of the company filing with SEC.

Speaker Change: forward-looking statement within the name of the private security litigation ris for act of mmaagthematified dat aseed onour current expectations and pri market approach king conditions and relate to investment involved no thermonal risks areuncertainties and other factors of re and industries

Speaker Change: these forward-looking stateayments can be identified by tertechminnologies such as well expand anticipate continue our other similar expressions for detatereddiscussions history general onunprocies this refer to our latest documents with u ssec

Speaker Change: any forward-looking statement that we make on this callre based on assumptionsces of today and i expersonally qualify in the entirely by caution statement risfactors and details of the company filing with dc

Kaye Liu: We do not undertake any application to update this statement, except as required on the applicable role.

Speaker Change: printes do not undertake any application to updthis statement fared as required on the applicable law

Shanglue Xiao: With that, I will now turn over to Sean Huizhou, Chairman and CEO of FUNC. Hello, everyone. Welcome to our second quarter, 2022 earnings call.

Shri Ravindra: with that i will now turn over to sh itself chairman and ce c thir a five n and are open the d due little about half

Shri Ravi: hello airone to ine second quarter two thousand and twenty four earnings callreter

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Speaker Change: a mum potio havevenany who so y who chandla had the gen come tb ing in some womenlear who longing why the truth of a fact it moment see why tamable toward that you oortity

Shanglue Xiao: We have been operating for nine years. During this time. We have seen all users grow from the beginning to the end of the year. We are looking to expand our user base further.

Speaker Change: ry has been operating for my yet

Speaker Change: during this time we haven't seen all users

Speaker Change: grow some new parents to to those welcoming a seven child or entering your lifestages

Speaker Change: our goal is to be long-term planners for our yearsers supporting the house of their familyies in light ofland trans agent pollution and the feelingeconomy we are looking through band our userabbase further

Speaker Change: together i would now p con ver in asia chunching the council

Speaker Change: so it woman wont chaain and two hundred of find that you both moment in ja to thethat ering has such sho well on the time take of fu get to that our sho visit now let's discuss some or i'going initiative

Shanglue Xiao: Now let's discuss some of our ongoing initiatives. As part of our initiative to provide our users with a holistic health solution, we plan to extend our presence into offline communities and establish wellness spaces, bringing our health care products directly to consumers.

Speaker Change: as power of our iniveses to provide upouple years es with a holistic health solution we plan to ent our presence into offline communities and establish wellness spaces bringaining our health care produ us direy to consumers

Shanglue Xiao: This is the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of the opening of 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opening of the opening This year, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March, the 14th of March Hello, everyone.

Speaker Change: chang and she ities are tony young son sha ha and since to car yet so the engineer tching hun timeso

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Speaker Change: seeing a hope k o ook

Speaker Change: in july we op our first offline stores focusing on traditional chinese medicine and awareness

Speaker Change: these months a new chapters when as in the health sector the also sto sttransgthenendthe conduction between our online and offline enses and ladies growworks while depplanending our customer base

Speaker Change: we aim to create a word for m nownetwork based on low communities offering racher services and spend our tuget customers groups to those age the forty one fifty five these demographic values

Speaker Change: person connections and i can help attract quality customers of the referrals

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Speaker Change: she ch your how to the you vany the jb pretty jagap in the cautionions are to two are the full geniment she 't co when a on yet in addition to or an offline fashion we plan to more organic growing and a house products

Speaker Change: we remain committed to our product selection criteria we do not offer an media orcur products or attempts to be or incompacting platform in fact we carefully tr quality product

Speaker Change: s reasonable prices and ensure value for our users these approach allows our incent managers to own affair profit margin

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Speaker Change: since our funding we have preved uncoaly and a for and expensive but curated a product electction strategy we use ate had driven metrics

Speaker Change: ser evaluate and sujust our put launched cycloast based on our user feedback additionally we emphasize produourtreatability beyond our trvl legbeal bandth will vis the originsions and facuriies of a key partnerof brands

Speaker Change: itesspecially you food and a house

Speaker Change: we encourage our managers still weak teams in these creasibility efforts

Speaker Change: to understand the production processes of quality products personally a vis verus oroigions across the country multiple times each month to share my experience and a build truck that we our usit and a service provided

Speaker Change: milis said 'un happy m sho some we are chl lo a szonia

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Speaker Change: moving on to another important to am our beauty business

Speaker Change: in the beauty sector of a privval label brand soyes

Speaker Change: rincrease celebrated its suimportant anniversary order years three year has grown alongside our lawyal users our prprodual development continues to ftherdown and to ageing solutions where we like to create inuctional products

Speaker Change: and the aging is the high end vector that has our technology and en raw materials

Speaker Change: we have developped our comprehensive productline including ev resistance on springs colon supplement and icare products we are forming a complete antagg matrix to meet users diver needets

Speaker Change: each other jjeers in the will called going to be little on tol artic in a inthe counccer

Speaker Change: champing im for herdacid to that since included the littleal poter converal luan er

Speaker Change: when re usefully tg said to be some p in the townch or machine a pay t can do ar

Speaker Change: jo pel you tell ccascer

Speaker Change: for jo q who have re teach of ata tal t again to because good you return to the lean on to of punure or made that he enssus in the phoneol that mean where they on of the 't go the suitt cur how on the goun

Speaker Change: another ten we also for cates when i

Speaker Change: is marketing in novation we also innovating in our mking efforts we are combining our technology and ai development with a shoort video content creation do not common no longer whereit in the short beer yeara we b

Speaker Change: three-eightating units content is key here driving traffic we are seeingving detail d to itsisra renew avenues in our short video projects

Speaker Change: our goal is to nurture talent by teaching users how to create original content we proline ai support and a share marketing skills to help them become dist distinctive of content creators as think time we are inenhing our service capabilities to alsoer a conmoncreors more resources and useful tools

Speaker Change: too much how then you and that that will the hand town then it mo be up pl otising each jo is pmpia of how to finding

Speaker Change: what thing goverven i the go don't get ging with the afric alling

Speaker Change: while the challenges remain we are coming to our lunch ance strategic growth wherees on including our operations and adoapting to the evolving market landscape with that i will turn the coreter over to mor tthree senior financial that ourwill turn to go through the financial results

Shanglue Xiao: Before I go through our financial results, please note that all numbers started in the foreign remarks are in high meters, and all in comparison and the pathetic changes are over-year basis, unless otherwise noting. During the same 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 regularly assess the profitability of both new and existing business lines, making thoughtful adjustments in response to market changes. This approach helped us maintain a stable financial position in a shifting business landscape. While we continue to refine our even-cremagement protocols, which contribute to a growth margin of 46.6 percent, we are also focused on optimization.

Speaker Change: okay thank you s ry al lo everyone

Speaker Change: before i go to our financial results please note that all numbers start in foreing remarks are ing iyemeter and au tech comparisons and the perting changes are year over-year business unless otherwise noting

Speaker Change: they are in the second quarter two thousand and four we encountedin some market dynamics that inflced our operations howeveror our current financial provisions allow us to support our strategic

Speaker Change: initiatives as we regularate cesster profitability of both new and existing biness lines making thoughtful adjustment in yourresponse to mac chanes

Speaker Change: this approach help us maintain a stable financial positions a shifting binis landscape

Speaker Change: while we continue to require our imtory manageurement protocols which contribute to a growth margin o fourty six point six percent

Shanglue Xiao: Our product range and supplier network to be aligned with customer preferences. As we move forward, we will continue to pursue in growth to the test, put in there while ensuring our financial stability.

Speaker Change: we are also foused optimization our product range on a supplier network to better align with customer preparal ents

Speaker Change: and we move forward we will continue to pursuing growth to test prudthem wire ensuring our financial stability

Shanglue Xiao: Now, let's take a close look at our financials. Total revenues were 166 million compared to 167.1 million a year ago. Remnews from sales of merchandise were 8.3 million, and the revenues from our marketplace buildings were 21.1 million. The changes were premiered by software, consumer confidence, and ongoing adjustment to our product range across all categories. Additionally, the optimization of our supplier and merchant network contributes to a short-term impact on sales. Despite the changes, our growth margin remained relatively strong at 46.6 percent. This trend is attribute to continue the customer role towards our product levels and our effective product creation strategy.

Speaker Change: now let's take a close look at our financials

Speaker Change: total revenues were one hundred and six million compared to one hundred and sixteen seven point one million a year go revenues from sales of mochise were eight to three ming and the revenues from our maxplace benits were

Speaker Change: twenty one point one million the changes were primary driven by softer consumer covenidantsance and ongoing adjustment to our product rangech across all catalwork

Speaker Change: addition the optimisation or our supplier and merchgeral network contribute to a shter impact ansers

Speaker Change: despite the chanengces our cost margin remain the relative strong e volistsix pointsix percent

Speaker Change: distress is attribute to continue the customer royal towards our pri labels and our effective product crelation strategy

Shanglue Xiao: Now, let's take a look at our operation expense. For fulfillment expense were 20.7 million compared to 29.9 million a year ago. This was mainly due to low warehousing and logistics costs resulting from decreased merchandise sales, as well as reduced the personal cost from starting optimization. Sales and market expense decreased to 21.7 million from 33.4 million a year ago. This was primarily a result of a decline in member-manager fee. Technology and content expense were 12.2 million compared to 14.23 million a year ago. This will largely be due to lower personal cost from starting optimization and reduction in service cost, generate and augmentative spend for 18.7 million compared to 30.2 million years ago.

Speaker Change: now let's take a look at our operachating expense for fillment expense were twenty points ofseven a minute compare to twenty- nine point nine million yearsgo this will main a due to low

Speaker Change: aware housing under logistics cost resulting from decrease the lard iser and as well i reduce the present cost from staring optimizations sales and the marxic expense the co the two twenty one point seven million fromaround sertius

Operator: Welcome to Yu Ji's second quarter, 2024 Earnings Conference Call.

Operator: Welcome to Yu Ji's second quarter, 2024 earnings conference call.

Operator: With us today, our Mr. Shanglue Xiao, Kairman, and Chief Executive Officer, Mr. Yeqing Chu, Senior Financial Director, and Ms. Kaye Liu, Investor Relations Director of the Company.

Operator: With us today, our Mr. Shanglue Xiao, Kairman, and Chief Executive Officer, Mr. Ye Quing Cui, Senior Financial Director, and Miss Kaye Liu, Investor Relations Director of the company. As a reminder, this conference call is being recorded.

Speaker Change: three point four minute a yesago this will prmary a result of a decline membermentro fee

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

Speaker Change: the cannoknowge and the content expense were to up point two million compare to fourteen points reumminute a escogo

Kaye Liu: Now, I would like to turn the conference over to our first speaker, Ms. Kaye Liu, IRD of Yu Ji.

Kaye Liu: Now, I would like to turn the conference over to our first speaker, Miss Kaye Liu, IRD of Yu Ji. Please go ahead, ma'am.

Speaker Change: this were larger due to lower a personal costs of starting optimizations and a reduction in seria server service cost

Kaye Liu: Hello, everyone. Welcome to our second quarter, 2024 earnings call. Before we start, please note that it's cover content. Full looking statement within the meaning of the private security litigation for the act of 1935 that's based on our current expectations and current multi-approved conditions, and related investment involved known among non-risk, uncertainties, and other factors of unity and industry. This full looking statement can be identified by terminologies such as well, expass, anticipate, continue our other similar expressions for detailed discussion of these three general uncertainties.

Kaye Liu: Please go ahead, ma'am.

Kaye Liu: Hello, everyone.

Speaker Change: generary and ammaintrative expense were eighteen po seven million compared to certain spring point two minute hascope this will mean a due to a reduce allowance for credit loss and the lower put al cost of ough staffing at adjustments

Kaye Liu: Welcome to our second quarter, 2024 Earnings Conference Call.

Shanglue Xiao: This will mainly be due to reduce the allowance for credit loss and lower personal cost from starting adjustments. Total operation expense in the second quarter decreased to 73.3 million from 100 to 10.8 million in the same period of 20 to 23. Loss for operations for 23.1 million compared to 11.8 million years ago. Let loss for 11.9 million compared to 4K 1.5 million years ago, while adjustment loss for 9.7 million compared with 39.8 million years ago. Basic and diluted let loss to share attributes to ordinary shareholders for both 1 cent compared to 2 cent in the same period of 20 to 3.

Speaker Change: total operation expense in the second quarter declosed the two se histhree poin three milluteion broal hind drat a ten point eight terittilling in the th period of twentie th countrytory

Kaye Liu: Before we start, please note that it's cover content, full-looking statement within the meaning of the private security litigation for acts of 19a.5 that are based on our current expectations and current multi-approved conditions and related measures that involve known risk, uncertainties, and other factors of unity and industry. These full-looking statements can be identified by terminologies such as well-expass, anticipate, continue our other similar expressions for detailed discussion of these three general uncertainties.

Speaker Change: rorestaurant operachations were counted three point one minute compared true eleven point eighty million asco let lastss were eleven point nine minillute

Kaye Liu: Since the first, our latest document filed with US SEC, any full looking statement that we make on this call based on assumptions that are today and are expressly qualified in the entirely bicultural statement, respect, and details of the company filing with SEC. We do not undertake any application to update this statement, expect as required on the applicable role.

Kaye Liu: These refer to our latest documents filed with U.S.S.S.C., any full-looking statement that we make on this call based on assumptions that are today and are expressly qualified in the entirely bicultural statement, respect, and details of the company filing with STC.

Speaker Change: comparedare to four one point five minute yes go whyre adjusted that ross were nine point seven million compared to we nine point intervenient aesco

Kaye Liu: 3G do not undertake any application to update this statement, expect as required on the applicable law.

Speaker Change: basic other dilute a me loss to share attribute to onineriashareholders were both w cent comp pay two two cents in the preimparred alterenary

Shanglue Xiao: Turning to liquidity, as of June 30, 2024, we had a total of 324.5 million in cash and the cash equivalent, which is cash and the short-term investment on our balance sheet, compared to 561.9 million as of December 13, 2021, 2003. Our liquidity access was sufficient to cover our payable obligations, and we do not hope and a long-term bank loans or debt rates on our balance sheet. In addition, we are dedicated to making the most of our working capital and a market managing our assets to better support our operations.

Shanglue Xiao: With that, I will now turn over to Sean Ren Xiao, Chairman and CEO of Q&A.

Shanglue Xiao: With that, I will now turn over to Sean Huizhou, Chairman, and CEO of FUNC. Hello, everyone. Welcome to our second quarter, 2022 earnings call. [inaudible] We are looking to expand our user base further. Now let's discuss some of our ongoing initiatives. As part of our initiative to provide our users with a holistic health solution, we plan to extend our presence into offline communities and establish wellness spaces, bringing our health care products directly to consumers.

Speaker Change: turning to liquidity

Speaker Change: as our june thirty and even anyfour we had a total three hungary and the ten four quant five million cash and the cash occurrence reshould cash and the short ter investment on our bbalanance sheet comp paare to five hundred and fifty one point nine million as of december thirfourteen

Shanglue Xiao: [inaudible] Injie has been operating for nine years, during this time, we have seen all users growing from new parents to those welcoming a second child or entering new life stages.

Speaker Change: so since while ccondidions with our liquided asse was sufficienting to cover our payable obligations and we do not hold any long-term bank loans

Speaker Change: or deits on our balenefsheing addition we are dedicated to making the most of our walking cap to ear marketting managing our efset to better support our operation

Shanglue Xiao: Looking ahead, we remain committed to enhancing our operational efficiency 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 production offerings. We are confident in our ability to regain movement and driving long-term value for our shareholders.

Speaker Change: looking ahead that we remain committeder to enhouncing our operational efficiencies and adapting our jg to navigated the involving market landscape it believes that our ongoing improvement

Shanglue Xiao: Our goal is to be long-term partners for our users supporting the health of their families.

Speaker Change: in inventory management and the cost optimization we have positioned us favorable for future growth

Shanglue Xiao: In light of the trans-Asian population and the Syrian economy, we are looking to expand our user base further.

Speaker Change: as we continue to innovate and the refile product officeings we are confidenting our ability to care moment and the driving longterm value for our shar shareholders

Shanglue Xiao: If we conclude our prepared and remodeling approach, we are now really to take questions.

Speaker Change: this concludes i will takecare the remarks for any any operate we are now ready to take questions

Operator: Now begin the question and answer session. When asking a question, please state your name in Chinese first, then repeat your question in English for the convenience of everyone on the call. To take a question, you may press star, then one on your touch tone phone.

Shanglue Xiao: Now, let's discuss some of our ongoing initiatives, as part of our initiative to provide our users with a holistic health solution, we plan to extend our presence into offline communities and establish wellness spaces, bringing our health care products directly to consumers.

Speaker Change: well now beggive a question and the answer session

Speaker Change: when asking in questions please state your name in chinese first then repeat your question in english for the convenience of everyone on the call

Speaker Change: to take a question you may press star then one on your touchtone phone if you're using a speaker pone please pick up your hands up before pressing the keys if at any time your question has been addressed and you would like to withdraw your question please press star and then to

Operator: If you are using a speaker phone, please pick up your hands up before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two.

Shanglue Xiao: [inaudible] Dijia, Dijia, Dijia, Dijia,[inaudible] Dijia, Dijia, Dijia, Dijia, Dijia, Dijia, Dijia, Dijia, Dijia Dijia, Dijia, Dijia Dijia, Dijia Dijia, Dijia[inaudible] of the Ministry of Foreign Affairs Hello, everyone.

Unnamed Speaker: [inaudible] Dijia, Dijia, Dijia, Dijia,[inaudible] Dijia, Dijia, Dijia, Dijia, Dijia, Dijia, Dijia, Dijia, Dijia Dijia, Dijia, Dijia Dijia, Dijia Dijia, Dijia[inaudible] Hello, everyone.

Ethan Yu: Our first question comes from Ethan Yu with First True First Trust China. Please go ahead. Hi. Hi, good evening. Thanks for taking my question. I have a question about our business operation. Mr. Xiao just mentioned that you have participated in numerous product accessibility efforts. Could you share more colour from this experience and how will these insights be applied to our product selection and operation at Yunji?

Ethan You: ourfirst question comes from ethan you

Speaker Change: with first truefirst trust china please go ahead

Ethan Yu: hi hi good youmean thanks for taking my question

Speaker Change: i have a question about our in your operation this shall just mention that you have participate numerous product attrbability efforts

Speaker Change: produitionsha more color on this experience and how will this inight the apply to our product collection and operation at is

Shanglue Xiao: I will thank you for your question. Thank you for your question. Thank you.

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Speaker Change: as the t growth the contrfort almost our week

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Shanglue Xiao: I would like to thank you for your support and support for this experience.

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Speaker Change: as there are new further questions at the time i'd like to give with all b overver to the management ready clopose your heart

Kaye Liu: 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.

Speaker Change: thank you for joining us today this and not hesitate to come act us if you have any further questutionsings and we look forward to talking with you next quarter

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

Speaker Change: the conference has now concluded thank you for attending you may now disconnect

Yeqing Cui: Before I go through our financial results, please note that all numbers started in the following remarks are in high meters and all in comparison and the pathetic changes are over-year basis, unless otherwise noting. During the same quarter of 2024, we encountered some market dynamics that influenced our operations.

Yeqing Cui: However, our current financial provisions allow us to support our strategic initiatives as we regularly assess the profitability of both new and existing business lines, making thoughtful adjustments in response to market changes. This approach helped us maintain the stable financial positions in the shifting business landscape.

Shanglue Xiao: This approach helped us maintain a stable financial position in shifting business landscape. While we continue to refine our even-cremagement protocols which contribute to a growth margin of 46.6 percent, we are also focused on optimization. Our product range and supplier network to bet aligned with customer preferences.

Yeqing Cui: While we continue to refine our interim procurement protocols which contribute to a growth margin of 46.6%, we are also focused on optimization.

Yeqing Cui: Our product range and supplier network to bet a line with customer preferences.

Yeqing Cui: As we move forward, we will continue to pursue in growth opportunities while ensuring our financial stability.

Shanglue Xiao: As we move forward, we will continue to pursue in growth to the test, put in there while ensuring our financial stability.

Yeqing Cui: Now, let's take a close look at our financials.

Shanglue Xiao: Now, let's take a close look at our financials. Total revenues were 166 million compared to 167.1 million a year ago. Remnews from sales of merchandise were 8.3 million, and the revenues from our marketplace buildings were 21.1 million. The changes were premiered by software, consumer confidence, and ongoing adjustment to our product range across all categories. Additionally, the optimization of our supplier and merchant network contribute to a short-term impact on sales. Despite the changes, our growth margin remained relatively strong at 46.6 percent. This trend is attribute to continue the customer role towards our product levels and our effective product creation strategy.

Yeqing Cui: Total revenues were 106 million compared to 116.7.1 million a year ago.

Yeqing Cui: Remnews from sales or merchandise were 8.3 million and the revenues from our marketplace business were 21.1 million.

Yeqing Cui: The changes were premiered by software, consumer confidence and ongoing adjustment to our product range across all categories.

Yeqing Cui: Additionally, the optimization of our supplier and merchant network contribute to a short-term impact on sales.

Yeqing Cui: Despite the changes, our growth margin remained relatively strong at 46.6%. This strength is a tribute to continued customer growth towards our product labels and our effective product creation strategy.

Yeqing Cui: Now, let's take a look at our operation expense. For procurement expense were 20.7 million compared to 29.9 million a year ago. This was mainly due to low warehousing and logistics costs resulting from decreased merchandise sales as well as reduce the personal cost from starving optimizations.

Yeqing Cui: Sales and the market expense decreased to 21.7 million from 33.4 million a year ago. This was primarily a result of a decline in member manger fee.

Shanglue Xiao: Sales and market expense decreased to 21.7 million from 33.4 million a year ago. This was primarily a result of a decline in member-manager fee. Technology and content expense were 12.2 million compared to 14.23 million a year ago. This will largely be due to lower personal cost from starting optimization and reduction in service cost, generate and augmentative spend for 18.7 million compared to 30.2 million years ago. This will mainly be due to reduce the allowance for credit loss and lower personal cost from starting adjustments.

Yeqing Cui: Technology and the content expense were 12.2 million compared to 14.23 million This will largely due to lower personal cost from starting optimization and reduction in service cost, generate and administrative spend for 18.7 million compared to 30.2 million years ago.

Yeqing Cui: This will mainly due to a reduced allowance for credit loss and a lower personal cost from starting adjustments.

Yeqing Cui: Total operation expense in the second quarter decreased to 73.3 million from 100 to 10.8 million in the same period of 20 to 23 loss for operations for 23.1 million compared to 11.8 million years ago.

Shanglue Xiao: Total operation expense in the second quarter decreased to 73.3 million from 100 to 10.8 million in the same period of 20 to 23 loss for operations for 23.1 million compared to 11.8 million years ago. Let loss for 11.9 million compared to 4K 1.5 million years ago while adjustment loss for 9.7 million compared with 39.8 million years ago. Basic and diluted let loss to share attributes to ordinary share holders for both 1 cent compared to 2 cent in the same period of 20 to 3.

Yeqing Cui: Let loss for 11.9 million compared to 4K 1.5 million years ago while adjustment loss for 9.7 million compared with 39.8 million years ago.

Yeqing Cui: Basic and diluted let loss to share attributes to ordinary share holders for both 1 cent compared to 2 cent in the same period of 20 to 3.

Yeqing Cui: Turning to liquidity, as June 13, 2024, we had a total of 324.5 million in cash and cash equivalent with short cash and short term investment on our balance sheet compared to 561.9 million as of December 13, 2021, 2003.

Shanglue Xiao: Turning to liquidity as of June 30, 2024, we had a total of 324.5 million in cash and the cash equivalent which is cash and the short-term investment on our balance sheet compared to 561.9 million as of December 13, 2021, 2003. Our liquidity access was sufficient to cover our payable obligations and we do not hope and a long-term bank loans or debt rates on our balance sheet in addition we are dedicated to making the most of our working capital and a market managing our assets to better support our operations.

Yeqing Cui: Our liquidity access was sufficient to cover our payable obligations and we do not hope an long-term bank loans or debt rates on our balance sheet in addition we are dedicated to making the most of our working capital and a market managing our assets to better support our operations.

Yeqing Cui: Looking ahead, we remain committed to enhancing our operational efficiency and adapting our strategy to navigate the involving market landscape.

Shanglue Xiao: Looking ahead we remain committed to enhancing our operational efficiency 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 production offerings. We are confident in our ability to regain movement and driving long-term value for our share holders.

Yeqing Cui: We believe that our ongoing improvements in inventory management and cost optimization will have positioned us favorable for future growth as we continue to innovate and refine our production offerings.

Yeqing Cui: We are confident in our ability to regain movement and driving long-term value for our share holders.

Operator: If we conclude our prepared and remodeling approach, we are now really to take questions. Now begin the question and answer session.

Yeqing Cui: This concludes our prepared remarks for today's approach.

Operator: We are now really to take questions.

Operator: We will now begin the question and answer session.

Operator: When asking a question, please state your name in Chinese first, then repeat your question in English for the convenience of everyone on the call.

Operator: When asking a question please state your name in Chinese first, then repeat your question in English for the convenience of everyone on the call. To take a question you may press star then one on your touch tone phone. If you are using a speaker phone, please pick up your hands up before pressing the keys.

Operator: To take a question, you may press star, then one on your touch tone phone.

Operator: If you are using a speaker phone, please pick up your hands up before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star, and then two.

Operator: If at any time your question has been addressed and you would like to withdraw your question please press star and then two.

Ethan Yu: Our first question comes from Ethan Yu with first true first trust China, please go ahead. Hi. Hi, good evening. Thanks for taking my question. I have a question about our business operation. Mr. Xiao just mentioned that you have participated in numerous product accessibility efforts. Could you share more colour from this experience and how will these insights be applied to our product selection and operation at Yunji? I will thank you for your question. Thank you for your question. Thank you. I would like to thank you for your support and support for this experience.

Ethan Yu: Our first question comes from Ethan Yu with first trust China, please go ahead.

Ethan Yu: Hi.

Ethan Yu: Hi, good evening.

Ethan Yu: Thanks for taking my question.

Ethan Yu: I have a question about our business operation.

Ethan Yu: Mr. Xiao just mentioned that you have participated in numerous product accessibility efforts.

Ethan Yu: Could you share more color from this experience and how will these insights be applied to our product collection and operation at Yunji?

Shanglue Xiao: Thank you for your question.

Kaye Liu: [inaudible] 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.

Operator: 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.

Operator: The conference is now concluded, thank you for attending, you may now disconnect.

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

Operator: Xiao, and Maxi Expense decreased to 21.7 million from 33.4 million a year ago.

Operator: This will premiere a result of a decline in member-manager fee.

Operator: Technology and the content expense were 12.2 million compared to 14.23 million a year ago.

Operator: This will be a larger due to lower personal costs from starting of domestic stations and reduction in service costs.

Operator: Generate and administrative expense were 18.7 million compared to 33.2 million a year ago. This will mainly due to a reduced allowance for credit loss and lower personal costs from starting adjustments.

Operator: Total operation expense in the second quarter decreased to 73.3 million from 100 to 10.8 million in the same period of 2023, loss for operations were 2.3.1 million compared to 11.8 million a year ago.

Operator: Let's loss for 11.9 million compared to 4K 1.5 million a year ago.

Operator: While the Japanese loss were 9.7 million compared to 39.8 million a year ago.

Operator: Basic and diluted net loss to share attributes to ordinary shareholders were both 1.5 compared to 2.5 in the same period of 2023. Turning to liquidity, as June 30, 2024, we had a total of 325.5 million in cash and cash equivalent with short cash and a short term investment on our balance sheet compared to 551.9 million as of December 13, 2021, 2023.

Operator: Our liquidity effect was sufficient to cover our payable obligations and we do not hold an long-term bank loans or debt benefits on our balance sheet.

Operator: In addition, we are dedicated to making the most of our working capital and its marketing managing our assets to better support our operations.

Operator: Looking ahead, we remain committed to enhancing our operational efficiencies and adapting our strategy to navigate the involving 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 products offering.

Operator: We are confident in our ability to regain movement and driving long-term value for our shareholder.

Operator: This concludes our prepared and remodeling approach.

Operator: We now really do take questions.

Operator: Now begin the question and answer session.

Operator: When asking a question, please state your name in Chinese.

Operator: First, then repeat your question in English for the convenience of everyone on the call.

Operator: To take a question, you may press star, then one on your touchtone phone. If you are using a speaker phone, please pick up your hands up before pressing the keys.

Operator: If at any time, your question has been addressed, and you would like to withdraw your question, please press star, and then two.

Ethan Yu: Yu.

Ethan Yu: Our first question comes from Ethan Yu with first trust China.

Ethan Yu: Please go ahead.

Ethan Yu: Hi, good evening.

Ethan Yu: Thanks for taking my question.

Ethan Yu: I have a question about our business operation.

Ethan Yu: Mr. Xiao just mentioned that you have participated in numerous product efforts.

Shanglue Xiao: Could you share more color from this experience and how will this insight be applied to our product selection and operation at Yunji?

Shanglue Xiao: Thank you for your question.

Shanglue Xiao: I really, of course, the contract almost every week for strength up to trace the ability.

Shanglue Xiao: In fact, we've been around many good merchants and supply chains in China, especially for high demand and a high repurchase rate of product like meat, ice, and the diet.

Shanglue Xiao: Yunji, your answer to your question is, can you share your experience with your customers?

Shanglue Xiao: However, we cannot simply rely on inspection reports, historical sales data, and a varied promotion of materials to compete in the way we introduce those merchants to our platform.

Shanglue Xiao: Only more of some take, of course, effective and healthy products, which are better suited to the physique of Chinese people can bring real value to our users.

Shanglue Xiao: These require our team to explore and experience, personally.

Shanglue Xiao: These generate sharing material for Yunji's credibility of PDs can gain more consumer trust.

Shanglue Xiao: Additionally, along with offline traceability, we can help more offline saloons and testing events, leveraging the advantages of a face-to-face communication to acquire loyal customers.

Shanglue Xiao: With such offline saloons and offline traceability at PDs, we are going to create the products that are going to go to the deep part of the consumers.

Shanglue Xiao: And those the products and the related materials are going to encourage the consumers to buy on all platforms.

Shanglue Xiao: Thank you.

Operator: Thank you for your question.

Operator: 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.

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

Operator: You may now disconnect.

Q2 2024 Yunji Inc Earnings Call

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