Q2 Yunji Inc Earnings Call

March 27, 2026

Speaker #1: Hey, what are you doing here?

Speaker #2: Maybe I'll have to have it up.

Speaker #3: Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to Yunji's second half 2025 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; and Mr. Nan Song, Chief Financial or Senior Financial Director.

Operator: Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's H2 2025 Earnings Conference Call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer, and Mr. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based solely on the company's current expectations and current market operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors of Yunji and its industry.

Speaker #3: As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based solely on the company's current expectations and current market operating conditions, and relate to events that involve known or unknown risks, uncertainties, and other factors of Yunji and its industry.

Speaker #3: These forward-looking statements can be identified by terminology such as 'will,' 'expect,' 'anticipate,' 'continue,' or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to the company's related documents filed with the U.S. SEC.

Operator: These forward-looking statements can be identified by terminology such as will, expect, anticipate, continue, or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to the company's related documents filed with the US SEC. Any forward-looking statements that the company makes on this call are based on assumptions as of today, and are expressly qualified in the entirety by cautionary statements, risk factors, and details of its filing with the SEC. The company does not undertake any obligation to update these statements except as required under applicable law. With that, I will now turn it over to Mr. Shanglue Xiao, Chairman and CEO of Yunji. Please go ahead, sir.

Speaker #3: Any forward-looking statements that the company makes on this call are based on assumptions as of today, and are expressly qualified in their entirety by cautionary statements, risk factors, and details of its filings with the SEC.

Speaker #3: The company does not undertake any obligation to update these statements, except as required under applicable law. With that, I will now turn it over to Mr. Shanglue Xiao, Chairman and CEO of Yunji.

Speaker #3: Please go ahead, sir.

Speaker #2: Hello, everyone, and welcome to Yunji's earnings call. Thank you for your continued interest and support.

Shanglue Xiao: Hello, everyone, and welcome to Yunji's earnings call. Thank you for your continued interest and support.

[Translator]: Hello, everyone, and welcome to Yunji's earnings call. Thank you for your continued interest and support.

Shanglue Xiao: [Non-English content].

Speaker #1: Yunji始终坚守成为全球有机生活引领者的战略定位。在有机健康生活领域精耕细作，稳步前行。2025年下半年，我们持续深化高毛利产品组合策略，稳固客户粘性基本盘，同时积极探索稳步布局销售渠道拓展工作。接下来，我来为大家介绍一下公司财务表现和战略执行情况。

[Translator]: 接下来我来为大家介绍一下公司财务表现和战略执行情况

Shanglue Xiao: [Non-English content].

Shanglue Xiao: Yunji has remained committed to its strategic positioning of becoming a global leader in organic healthy living while making steady progress in the organic and healthy living market. In H2 2025, we continued to refine our premium product strategy, further strengthen customer loyalty, and actively explore and expand our sales channels. Now let me walk you through the company's financial performance and strategic execution.

[Translator]: Yunji has remained committed to its strategic positioning of becoming a global leader in organic healthy living while making steady progress in the organic and healthy living market. In H2 2025, we continued to refine our premium product strategy, further strengthen customer loyalty, and actively explore and expand our sales channels. Now let me walk you through the company's financial performance and strategic execution.

Speaker #2: Yunji has remained committed to its strategic positioning of becoming a global leader in organic healthy living, while making steady progress in the organic and healthy living market.

Speaker #2: In the second half of 2025, we continued to refine our premium product strategy, further strengthen customer loyalty, and actively explore and expand our sales channels.

Speaker #2: Now let me walk you through the company's financial performance and strategic execution.

[Translator]: 2025年下半年，公司实现总收入人民币1.59亿元，其中去掉不活跃店主余额后的商品销售收入1.28亿元，相较于2024年下半年上升0.16%。同时，公司净亏损大幅收窄，从2024年同期的亿元收缩至3,300万元，降幅达70%。这背后是产品策略、运营绩效和财务管控的多重发力。用户运营方面，公司依旧保持69.7%的高复购率。这一数据不仅体现了用户对云集产品和服务的高度认可，更成为公司稳健发展的核心基石。上述数据充分说明，我们坚持的高毛利产品策略和精细化用户运营策略正逐步产生实质性的成果，公司发展的质量和效益也在持续的提升。

Shanglue Xiao: [Non-English content].

Speaker #1: 2025年下半年，公司实现总收入人民币1.59亿元，其中去掉不活跃电阻余额后的商品销售收入1.28亿元，相较于2024年下半年上升0.16%。同时，公司净亏损大幅收窄，从2024年同期的1.1亿元收缩至3,300万元，降幅达70%。这背后是产品策略、运营绩效和财务管控的多重发力。用户运营方面，公司依旧保持69.7%的高复购率，这一数据不仅体现了用户对云集产品和服务的高度认可，更成为公司稳健发展的核心基石。上述数据充分说明我们坚持的高毛利产品策略和精细化用户运营策略正逐步产生实质性的成果。公司发展的质量和效益也在持续的提升。

[Translator]: In H2 2025, the company achieved total revenue of around CNY 159 million, excluding the impact of the revenue recognized from long-term incentive payables to inactive members.

[Translator]: In H2 2025, the company achieved total revenue of around RMB 159 million, excluding the impact of the revenue recognized from long-term incentive payables to inactive members. Merchandise sales revenue was RMB 128 million, up 0.16% compared to H2 2024. Meanwhile, the company's net loss significantly narrowed from RMB 115 million in the same period of 2024 to RMB 33 million, representing a 70% reduction. This was driven by the combined impact of our product strategy, operational efficiency improvements, and a disciplined financial management.

Speaker #2: In the second half of 2025, the company achieved total revenue of around RMB 159 million. Excluding the impact of revenue recognized from long-age incentive payables to inactive lenders, merchandise sales revenue was RMB 128 million, up 0.16% compared to the second half of 2024.

[Company Representative] (Yunji): Merchandise sales revenue was CNY 128 million, up 0.16% compared to H2 2024. Meanwhile, the company's net loss significantly narrowed from CNY 115 million in the same period of 2024 to CNY 33 million, representing a 70% reduction. This was driven by the combined impact of our product strategy, operational efficiency improvements, and a disciplined financial management. In terms of user operations, the company maintained a high purchase repurchase rate of 69.7%, which not only reflects users' high recognition of Yunji's products and services, but also serves as the core foundation for the company's steady development. These results reflect the growing effectiveness of our displaying product selection and operational execution with the quality and efficiency of the company's development continuing to improve.

Speaker #2: Meanwhile, the company's net loss significantly narrowed from RMB 115 million in the same period of 2024 to RMB 33 million, representing a 70% reduction.

Speaker #2: This was driven by the combined impact of our product strategy, operational efficiency improvements, and disciplined financial management. In terms of user operations, the company maintained a high purchase repurchase rate of 69.7%, which not only reflects users' high recognition of Yunji's products and services, but also serves as the core foundation for the company's steady development.

[Translator]: In terms of user operations, the company maintained a high purchase repurchase rate of 69.7%, which not only reflects users' high recognition of Yunji's products and services, but also serves as the core foundation for the company's steady development. These results reflect the growing effectiveness of our displaying product selection and operational execution with the quality and efficiency of the company's development continuing to improve.

Speaker #2: These results reflect the growing effectiveness of our product selection display and operational execution, with the quality and efficiency of the company's development continuing to improve.

Shanglue Xiao: 2025年下半年，我们坚定地在核心业务板块持续深耕，取得阶段性的进展。

Shanglue Xiao: [Non-English content].

Speaker #1: 2025年下半年，我们坚定地在核心业务板块持续深耕，取得阶段性的进展。

[Company Representative] (Yunji): In H2 2025, we firmly continued to cultivate our core business segments and achieve the phased progress.

[Translator]: In H2 of 2025, we firmly continued to cultivate our core business segments and achieve the phased progress.

Speaker #2: In the second half of 2025, we firmly continued to cultivate our core business segments and achieved phased progress.

Shanglue Xiao: 首先，我们持续深化大健康战略，推动有机食品和大健康领域深度融合，打造特色鲜明的药食同源产品矩阵。我们紧跟国家大健康战略步伐，精准挖掘用户健康消费需求，因此我们的有机食品和健康产品持续取得了消费者的信任。2025年，公司有五款有机食品和健康单品销售额突破一千万，分别为阳澄湖大闸蟹、金球益生菌、轻燃咖啡、优浆有机牛奶、白岳山冻干沙棘粉。

Shanglue Xiao: [Non-English content].

Speaker #1: 首先，我们持续深化大健康战略，推动有机食品和大健康领域深度融合，打造特色鲜明的药食同源产品矩阵。我们紧跟国家大健康战略步伐，精准挖掘用户健康消费需求。因此，我们的有机食品和健康产品持续取得了消费者的信任。2025年，公司有五款有机食品和健康单品销售额突破1,000万，分别为洋葱糊打杂蟹、金球益生菌、清然咖啡、优浆有机牛奶、白月山冻干沙棘粉。

[Company Representative] (Yunji): First, we continue to advance our health strategy, further integrating organic food within health sector and building a distinctive portfolio of food medicine homology products. By closely aligned with China's national health strategy and precisely addressing consumers health focused needs, our organic foods and health products have continued to earn the trust of consumers. In 2025, five of the company's organic food and health products, and each generated sales of over CNY 10 million, including the Yangcheng Lake Hairy Crabs, the probiotics bolus, Light Slimming Coffee, Yujiang Organic Milk, and Baiyueshan freeze-dried sea buckthorn powder.

[Translator]: First, we continue to advance our health strategy, further integrating organic food within health sector and building a distinctive portfolio of food medicine homology products. By closely aligned with China's national health strategy and precisely addressing consumers health focused needs, our organic foods and health products have continued to earn the trust of consumers. In 2025, five of the company's organic food and health products, and each generated sales of over RMB 10 million, including the Yangcheng Lake Hairy Crabs, the probiotics bolus, Light Slimming Coffee, Yujiang Organic Milk, and Baiyueshan Freeze-Dried Sea Buckthorn Powder.

Speaker #2: First, we continued to advance our health strategy, further integrating organic food within the health sector and building a distinctive portfolio of food medicine pharmacology products.

Speaker #2: By closely aligning with China's National Health Strategy and precisely addressing consumers' health-focused needs, our organic foods and health products have continued to earn the trust of consumers.

Speaker #2: In 2025, five of the company's organic food and health products each generated sales of over RMB 10 million, including Yanchun Lake Hairy Crabs, Probiotic Bolus, Light Sleeping Coffee, Yingjia Organic Milk, and Baiyunshan Freeze-dried Sea Buckthorn Powder.

Shanglue Xiao: 随着消费者对健康的认可度和关注度不断提升，我们进一步推出药食同源系列产品，如2025年第四季度推出的黄精茶，凭借天然健康的核心优势，迅速成为用户青睐的爆款单品。该产品依托优质原料和精细的炮制工艺，在保持高毛利的同时实现销售额的快速增长，成为健康生活业务板块的新亮点。截至2025年12月，单品销售额已经突破1,800万元。未来我们将持续丰富药食同源产品的品类，进一步完善大健康产品矩阵，满足用户多元化的健康消费需求。

[Translator]: 随着消费者对健康的认可度和关注度不断提升，我们进一步推出药食同源系列产品，如2025年第四季度推出的黄精茶，凭借天然健康的核心优势，迅速成为用户青睐的爆款单品。该产品依托优质原料和精细的炮制工艺，在保持高毛利的同时实现销售额的快速增长，成为健康生活业务板块的新亮点。截至2025年12月，单品销售额已经突破1,800万元。未来我们将持续丰富药食同源产品的品类，进一步完善大健康产品矩阵，满足用户多元化的健康消费需求。

Speaker #1: 随着消费者对健康的认可度和关注度不断提升，我们进一步推出药食同源系列产品。如2025年第四季度推出的黄金茶，凭借天然健康的核心优势，迅速成为用户青睐的爆款单品。该产品依托优质原料和精细的炮制工艺，在保持高毛利的同时实现销售额的快速增长，成为健康生活业务板块的新亮点。截至2025年12月，单品销售额已经突破1,800万元。未来，我们将持续丰富药食同源产品的品类，进一步完善大健康产品矩阵，满足用户多元化的健康消费需求。

[Company Representative] (Yunji): As consumer awareness of and demand for health and wellness continue to grow, we further expanded out our portfolio of food medicine homology products. One example is in the poly.

[Translator]: As consumer awareness of and demand for health and wellness continue to grow, we further expanded out our portfolio of food medicine homology products. One example is in the poly.

Speaker #2: As consumer awareness of and demand for health and wellness continue to grow, we further expanded our portfolio of food medicine pharmacology products. One example is in the Poly.

Operator: Pardon me, everyone. This is the conference operator. It looks like we've lost the main connection. Please stand by.

Speaker #3: Pardon me, everyone, this is the conference operator. It looks like we've lost the main connection. Please stand by.

Shanglue Xiao: 他就说那个再回去，就直接这里吗？

Speaker #2: So this one is the... 再回去。我直接这里吗？ So, operator, do we use this line or the main line?

[Company Representative] (Yunji): Operator, we use this line or the main line?

[Translator]: Operator, we use this line or the main line?

Operator: Uh, you're on the correct line now, ma'am. Please proceed.

Speaker #3: You're on the correct line now, ma'am. Please proceed.

[Company Representative] (Yunji): Okay. One example is in the polygonatum tea, which we launched in Q4 of 2025. With its natural and health-focused advantages, the polygonatum tea quickly became one of our most popular products. Supported by premium ingredients and refined processing techniques, the Jiuhua Jun polygonatum tea achieved rapid sales growth, making it a new highlight within our healthy living business. As of the end of December 2025, sales of this product had exceeded CNY 80 million. In the future, we will continue to enrich the food and medicine homology product categories and further improve the health and wellness product metric to meet users' diversified health consumption needs.

[Translator]: Okay. One example is in the polygonatum tea, which we launched in Q4 of 2025. With its natural and health-focused advantages, the polygonatum tea quickly became one of our most popular products. Supported by premium ingredients and refined processing techniques, the Jiuhua Jun polygonatum tea achieved rapid sales growth, making it a new highlight within our healthy living business. As of the end of December 2025, sales of this product had exceeded CNY 80 million. In the future, we will continue to enrich the food and medicine homology product categories and further improve the health and wellness product metric to meet users' diversified health consumption needs.

Speaker #2: Okay. So with—one example is in the Polygon 20, which we launched in the fourth quarter of 2025, with its natural and health-focused advantages.

Speaker #2: The Polygon 20 quickly became one of our most popular products. Supported by premium ingredients and refined processing techniques, the Jiu Hua Zun Polygon 20 achieved rapid sales growth, making it a new highlight within our healthy living business.

Speaker #2: As of the end of December 2025, sales of this product had exceeded RMB 18 million. In the future, we will continue to enrich the food-medicine pharmacology product categories and further improve the health and wellness product metric to meet users’ diversified health consumption needs.

Shanglue Xiao: 我们为素颜良生打造了质价比的策略，精准适配当下理性消费的趋势，稳步占领市场份额。素颜深度契合消费者对质价比的核心需求，推出多款明星单品及产品组合，多年来收获市场的高度认可。2025年，素颜金多肽系列的销售额较上年增长20%。大米洁面慕斯单品的销售额较去年上半年增长32%。波斯樱系列的销售额从2024年的2,070万元增长26%，至2,620万元。素颜的良好表现印证了质价比策略的前瞻性，为后续市场拓展奠定了坚实的基础。

Speaker #1: 我们为素颜量身打造了自驾笔的策略，精准适配当下理性消费的趋势，稳步占领市场份额。素颜深度契合消费者对自驾笔的核心需求，推出多款明星单品及产品组合，多年来收获市场的高度认可。2025年，素颜精多态系列的销售额较上年增长20%。大米洁面慕斯单品的销售额较去年上半年增长32%。波斯音系列的销售额从2024年的2,070万元增长26%至2,620万元。素颜的良好表现印证了自驾笔策略的前瞻性，为后续市场拓展奠定了坚实的基础。

[Company Representative] (Yunji): We developed a tailored value for money strategy for SUYE, closely along with today's more rational consumer spending trends, and this has helped the brand steadily strengthen its market position. To meet consumers' core demand for quality products at attractive prices, we have introduced a range of flagship SUYE products and product bundles that have been well-recognized in the market over the years. In 2025, sales of SUYE's polypeptide series increased by 20% year over year, while sales of the Rice Cleansing Mousse increased by 32% year over year. Sales of the Pro-Xylane firming series also increased by 26% from CNY 20.7 million in 2024 to CNY 26.2 million in 2025. SUYE's strong performance confirms the forward-thinking nature of our value for money strategy and lays a solid foundation for further market expansion.

[Translator]: We developed a tailored value for money strategy for SUYE, closely along with today's more rational consumer spending trends, and this has helped the brand steadily strengthen its market position. To meet consumers' core demand for quality products at attractive prices, we have introduced a range of flagship SUYE products and product bundles that have been well-recognized in the market over the years. In 2025, sales of SUYE's polypeptide series increased by 20% year over year, while sales of the Rice Cleansing Mousse increased by 32% year over year. Sales of the Pro-Xylane firming series also increased by 26% from CNY 20.7 million in 2024 to CNY 26.2 million in 2025. SUYE's strong performance confirms the forward-thinking nature of our value for money strategy and lays a solid foundation for further market expansion.

Speaker #2: We developed a tailored value-for-money strategy for 素颜, closely aligned with today's more rational consumer spending trends, and this has helped the brand steadily strengthen its market position to meet consumers' core demand for quality products at attractive prices.

Speaker #2: We have introduced a range of flagship Suye products and a product bundle that have been well recognized in the market over the years. In 2025, sales of Suye's Polypeptide series increased by 20% year over year, while sales of the Rice Cleaning Mousse increased by 32% year over year.

Speaker #2: Sales of the Pro Xylane Fermi series also increased by 26%, from RMB 20.7 million in 2024 to RMB 26.2 million in 2025. Suye's strong performance confirms the forward-thinking nature of our value-for-money strategy and lays a solid foundation for further market expansion.

Shanglue Xiao: 同时，我们以体验服务打造差异化的竞争优势，逐步从产品销售平台融合成为产品加体验型平台，进一步提升用户粘性。我们搭建了完善的供应链检测体系，让用户全程参与产品品质的验证，从源头有机为健康扎根，建立深度品牌信任。如2025年10月，我们开展的白岳山冻干沙棘粉溯源之旅，我们组织会员走进青海沙棘原产区，让会员直观见证野生沙棘从有机种植到健康加工的全流程。这种透明化的溯源模式持续赢得了会员对产品的信任。溯源活动报名的人数稳步增长，吸引了越来越多的会员加入。

Speaker #1: 同时我们以体验服务打造差异化的竞争优势，逐步逐步从产品销售平台融合成为产品加体验型平台，进一步提升用户粘性。我们搭建了完善的供应链检测体系，让用户全程参与产品品质的验证，从源头有机为健康扎根，建立深度品牌信任。如2025年10月，我们开展的白月山冻干沙棘粉素颜之旅，我们组织会员走进青海沙棘原产区，让会员直观见证野生沙棘从有机种植到健康加工的全流程。这种透明化的素颜模式持续赢得了会员对产品的信任。素颜活动报名的人数稳步增长，吸引了越来越多的会员加入。

[Company Representative] (Yunji): At the same time, we created and differentiated competitive advantages through the experience and show services, gradually transforming from a product sales platform into a product plus experience platform, further enhancing user engagement and loyalty. We have created a comprehensive supply chain traceability experience, allowing users to participate in the verification of the product quality throughout the process, bringing full traceability from the source through organic standards and building deep trust in brand. For example, in October 2025, we organized a Baiyueshan freeze-dried sea buckthorn powder traceability tour, where we organized the members to visit the Qinghai sea buckthorn production area, allowing members to directly witness the entire process, from organic cultivation to scientific processing of a wild sea buckthorn. This transparent and traceability model has continually strengthened members' trust in our products. Participation in these traceability programs has grown steadily, attracting an increased number of members.

[Translator]: At the same time, we created and differentiated competitive advantages through the experience and show services, gradually transforming from a product sales platform into a product plus experience platform, further enhancing user engagement and loyalty. We have created a comprehensive supply chain traceability experience, allowing users to participate in the verification of the product quality throughout the process, bringing full traceability from the source through organic standards and building deep trust in brand. For example, in October 2025, we organized a Baiyueshan freeze-dried sea buckthorn powder traceability tour, where we organized the members to visit the Qinghai sea buckthorn production area, allowing members to directly witness the entire process, from organic cultivation to scientific processing of a wild sea buckthorn. This transparent and traceability model has continually strengthened members' trust in our products. Participation in these traceability programs has grown steadily, attracting an increased number of members.

Speaker #2: As in time, we created differentiated competitive advantages through experiential services, gradually transforming from a product sales platform into a product-plus-experience platform, further enhancing user engagement and loyalty.

Speaker #2: We have created a comprehensive supply chain traceability experience, allowing users to participate in the verification of product quality throughout the process, reinforced health-friendly sourcing through organic standards, and built deep trust in the brand.

Speaker #2: For example, in October 2025, we organized a buying-free dried sea buckle foam powder traceability tool, where we organized the members to visit the Qinghai sea buckle foam production area, allowing members to directly witness the entire process from organic cultivation to scientific processing of wild sea buckle foam.

Speaker #2: This transparent traceability model has continually strengthened members' trust in our products. Participation in this traceability program has grown steadily, attracting an increased number of members.

Shanglue Xiao: 此外，我们深化茶疗体验的服务，为消费者认可药食同源产品奠定了坚实基础，从而引申出药食同源产品布局。如今，公司的体验服务已囊括了产品的全链路，从前端供应链溯源的品质鉴证，到后端茶疗等服务的深度互动。全链路的体验设计不仅提升了用户参与度和品牌信任度，更构建起用户与平台之间的情感链接，这也是未来我们向产品加体验平台转型的核心竞争力。

Speaker #3: 此外，我们深化查聊体验的服务，为消费者认可钥匙同源产品奠定了坚实基础。从而引申出钥匙同源产品布局，如今公司的体验服务已囊括了产品的全链路，从前端供应链素颜的品质见证到后端查聊等服务的深度互动，全链路的设计体验设计不仅提升了用户参与度和品牌信任度，更构建起用户与平台之间的情感链接。这也是未来我们向产品加体验平台转型的核心竞争力。

[Company Representative] (Yunji): In addition, we continue to enhance our tea therapy experience services, laying a solid foundation for broader consumer recognition of the food medicine homology products, and supporting the expansion of our offerings in this category. Today, our experience services span the full product journey from front-end supply chain traceability that validates product quality to back-end interactive services such as the tea therapy. The end-to-end experience design not only enhances user participation and brand trust, but also builds emotional connections between users and the platform. We believe this will serve as a core competitive strength as we continue our transition toward a product plus experience platform.

[Translator]: In addition, we continue to enhance our tea therapy experience services, laying a solid foundation for broader consumer recognition of the food medicine homology products, and supporting the expansion of our offerings in this category. Today, our experience services span the full product journey from front-end supply chain traceability that validates product quality to back-end interactive services such as the tea therapy. The end-to-end experience design not only enhances user participation and brand trust, but also builds emotional connections between users and the platform. We believe this will serve as a core competitive strength as we continue our transition toward a product plus experience platform.

Speaker #2: In addition, we continue to enhance our tea therapy experience services, laying a solid foundation for broader consumer recognition of food-medicine pharmacology products and supporting the expansion of our offerings in these categories.

Speaker #2: Today, our experience services span the full product journey, from front-end supply chain traceability that validates product quality to back-end interactive services, such as the tea therapy.

Speaker #2: The end-to-end experience design not only enhances user participation and brand trust, but also builds emotional connections between users and the platform. We believe this will serve as a core competitive strength as we continue our transition toward a product-plus-experience platform.

Shanglue Xiao: 在稳固核心业务的同时，我们清晰认识到，增长是企业发展的核心主题。2025年下半年，我们在巩固现有用户基础的前提下，积极探索多元化的获客渠道，力求实现增长和效率的平衡，推动公司的可持续发展。

Speaker #1: 在稳固核心业务的同时，我们清晰认识到增长是企业发展的核心主题。2025年下半年，我们在巩固现有用户基础的前提下，积极探索多元化的获客渠道，力求实现增长和效率的平衡，推动公司的可持续发展。

[Company Representative] (Yunji): As we continue to strengthen our core business, we remain keenly aware that growth is a constant priority for any company. In H2 2025, while consolidating our existing user base, we actively explore diversified customer acquisition channels, seeking to balance growth with efficiency, and support the company's sustainable development.

[Translator]: As we continue to strengthen our core business, we remain keenly aware that growth is a constant priority for any company. In H2 2025, while consolidating our existing user base, we actively explore diversified customer acquisition channels, seeking to balance growth with efficiency, and support the company's sustainable development.

Speaker #2: As we continue to strengthen our core business, we remain keenly aware that growth is a constant priority for any company. In the second half of 2025, while consolidating our existing user base, we actively explore diversifying customer acquisition channels, seeking to balance growth with efficiency and explore the company's sustainable development.

Shanglue Xiao: 我们通过推出一系列的精准化运营举措，高效激活存量用户。如我们在某次活动中，向五万余沉睡用户发出复购的邀请，其中54.87%的沉睡用户通过该邀请在平台成功下单。此类精准化运营举措带来了可观的激活转化率，让存量用户的商业价值得到充分释放。2026年上半年，我们将延续存量用户激活策略，重点推出超级星期三专属活动，在APP打造专属入口，主推精选产品。目前该活动的日用户活跃度比较平日提升25%。此外，我们加大了线上线下渠道的深耕力度。2025年，我们通过落地配模式拓展新城市，连接社区团长，新拓展落地配城市九座，新开发团长四千余人。这些社区团长为我们撬动了一大批高粘性、高价值的优质用户，为公司长期发展积累了宝贵的用户资产。

Speaker #1: 我们通过推出一系列的精准化运营举措，高效激活存量用户。如我们在某次活动中向5万纯粹用户发出复购的邀请，其中54.87%的纯粹用户通过该邀请在平台成功下单。此类经转化运营举措带来了可观的激活转化率，让存量用户的商业价值得到充分释放。2026年上半年，我们将延续存量用户激活策略，重点推出超级星期三专属活动。在APP打造专属入口主推精选产品，目前该活动的日用户活跃度评较平日提升25%。此外，我们加大了线下渠道的深耕力度。2025年，我们通过落地配模式拓展新城市连接社区团长，新拓展落地配城市9座，新开发团长4,000余人。这些社区团长为我们撬动了一大批高粘性、高价值的优质用户，为公司长期发展积累了宝贵的用户资产。

[Company Representative] (Yunji): We efficiently activated existing users through a series of targeted operational initiatives. For example, in one campaign, we sent repurchase invitations to over 50,000 dormant users, and 44.87% of those users subsequently placed order on the platform. These targeted initiatives delivered strong activation and conversion results, fully unlocking the commercial value of our existing user base. In H1 2026, we extended the existing user activation strategy, focusing on launching the Super Wednesday campaign. Through our dedicated entry point in our APP, we are featuring a curated selection of the products, and the campaign has already driven a 25% increase in daily active users compared with normal days. In addition, we put greater emphasis on expanding our offline channels. In 2025, we entered nine new cities through our local delivery model and added more than 4,000 new community leaders.

[Translator]: We efficiently activated existing users through a series of targeted operational initiatives. For example, in one campaign, we sent repurchase invitations to over 50,000 dormant users, and 44.87% of those users subsequently placed order on the platform. These targeted initiatives delivered strong activation and conversion results, fully unlocking the commercial value of our existing user base. In H1 2026, we extended the existing user activation strategy, focusing on launching the Super Wednesday campaign. Through our dedicated entry point in our APP, we are featuring a curated selection of the products, and the campaign has already driven a 25% increase in daily active users compared with normal days. In addition, we put greater emphasis on expanding our offline channels. In 2025, we entered nine new cities through our local delivery model and added more than 4,000 new community leaders.

Speaker #2: We efficiently activated existing users through a series of targeted operational initiatives. For example, in one campaign, we sent repurchase invitations to over 50,000 dormant users, and 44.87% of those users subsequently placed orders on the platform.

Speaker #2: This targeted initiative delivered strong activation and conversion results, fully unlocking the commercial value of our existing user base. In the first half of 2026, we extended the existing user activation strategy, focusing on launching the Super Wednesday campaign.

Speaker #2: Through our dedicated entry point in our app, we are featuring a curated selection of products, and the campaign has already driven a 25% increase in daily active users compared with normal days.

Speaker #2: In addition, we put greater emphasis on expanding our offline channels in 2025. We entered nine new cities through our local delivery model and added more than 4,000 new community leaders.

[Company Representative] (Yunji): These community leaders helped us attract a large number of high-loyalty, high-value quality users, accumulating valuable user assets for the company's long-term development.

Speaker #2: These community leaders helped us attract a large number of high-loyalty, high-value, quality users, accumulating valuable user assets for the company's long-term development.

Shanglue Xiao: 各位朋友们，回顾2025年下半年，我们步履坚实。展望2026年上半年，我们目标清晰。新的一年，云集将继续坚守全球有机生活引领者的战略定位，以产品和体验为双轮驱动，以效率和增长为核心导向，持续为中国家庭的有机健康生活贡献更多力量。

Speaker #1: 各位朋友们，回顾2025年下半年，我们步履坚实，展望2026年上半年，我们目标清晰，新的一年云集将继续坚守全球有机生活引领者的战略定位，以产品和体验为双轮驱动，以效率和增长为核心导向。持续为中国家庭的有机健康生活贡献更多力量。

[Company Representative] (Yunji): As we look back on the H2 2025, we made steady and solid progress. Looking ahead to the H1 2026, our priorities are clear. In the year ahead, Yunji will remain committed to its strategic positioning as a global leader in organic living, with products and experiences serving as our dual growth engines, and with efficiency and growth as our core priorities. We will continue to contribute to the healthier and more organic lifestyles for families in China.

[Translator]: As we look back on the H2 2025, we made steady and solid progress. Looking ahead to the H1 2026, our priorities are clear. In the year ahead, Yunji will remain committed to its strategic positioning as a global leader in organic living, with products and experiences serving as our dual growth engines, and with efficiency and growth as our core priorities. We will continue to contribute to the healthier and more organic lifestyles for families in China.

Speaker #2: As we look back on the second half of 2025, we may see steady and solid progress, looking ahead to the first half of 2026. Our priorities are clear: in the year ahead, Yunji will remain committed to its strategic positioning as a global leader in organic living.

Speaker #2: With products and experiences serving as our dual growth engines, and with efficiency and growth as our core priorities, we will continue to contribute to healthier, more organic lifestyles for families in China.

Shanglue Xiao: 我的分享到此结束。接下来欢迎我们公司财务总监宋岚为大家详细分享财务情况。

Speaker #1: 我的分享到此结束。接下来欢迎我们公司财务总监宋澜为大家详细分享财务情况。

[Company Representative] (Yunji): This concludes my prepared remarks for today. With that, I will hand it over to Mrs. Nan Song, our Senior Financial Director, to go through the financial results.

[Translator]: This concludes my prepared remarks for today. With that, I will hand it over to Mrs. Nan Song, our Senior Financial Director, to go through the financial results.

Speaker #2: This concludes my prepared remarks for today. With that, I will hand it over to Mr. Nan Song, our Senior Financial Director, to go through the financial results.

Nan Song: Thank you, Shanglue Xiao. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms, and all comparisons and percentage changes are on a year-over-year basis unless otherwise noted. Throughout 2025, we operate in a challenging and uncertain market environment. Nevertheless, supported by our resilient financial position, we continue to advance our strategic priorities of a curated premium product to our users, while remaining disciplined in cost management and making timely adjustments to adapt to dynamic market conditions. Now let's take a closer look at our H2 2025 financials. Total revenues were CNY 158.7 million compared to CNY 183.8 million a year ago. Revenues from sales of merchandise were CNY 136.4 million.

Nan Song: [Non-English content].

[Translator]: Thank you, Shanglue Xiao. Hello, everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in RMB terms, and all comparisons and percentage changes are on a year-over-year basis unless otherwise noted. Throughout 2025, we operate in a challenging and uncertain market environment. Nevertheless, supported by our resilient financial position, we continue to advance our strategic priorities of a curated premium product to our users, while remaining disciplined in cost management and making timely adjustments to adapt to dynamic market conditions. Now let's take a closer look at our H2 2025 financials. Total revenues were CNY 158.7 million compared to CNY 183.8 million a year ago. Revenues from sales of merchandise were CNY 136.4 million.

Speaker #3: Thank you, Song Li. Hello everyone. Before I go through our financial results, please note that all numbers stated in the following remarks are in our midterms, and all comparisons and percentage returns are on a year-over-year basis unless otherwise noted.

Speaker #3: Throughout 2025, we operate in a challenging and uncertain market environment. Nevertheless, supported by our resilient financial position, we continue to advise our strategic priorities over curated premium products to our users, while remaining disciplined in cost management and making timely adjustments to adapt to dynamic market conditions.

Speaker #3: Now let's take a closer look at our second half 2025 financials. Total revenues were $158.7 million compared to $183.8 million a year ago. Revenues from sales of merchandise were $136.4 million, and this figure includes the impact from the revenue recognition of law agent insights payables into inactive members. Including this impact, our measured sales grew by 0.16% compared to the same period of 2024.

Nan Song: The stated figure includes the impact from the revenue recognition of large agent incentives payables to inactive members. Including this impact, our merchandise sales grew by 0.16% compared to the same period of 2024, reflecting the healthy growth of our core business and demonstrating the effectiveness of our strategic focus on organic health and products under private labels. Revenues from our marketplace business were CNY 22.1 million. The change in total revenues was primarily driven by our deliberate decision to scale back the marketplace business while refining our product offering across all categories and optimizing our selection of suppliers and merchants. Our strategic focus has driven our marketplace position for sustainable growth.

[Translator]: The stated figure includes the impact from the revenue recognition of large agent incentives payables to inactive members. Including this impact, our merchandise sales grew by 0.16% compared to the same period of 2024, reflecting the healthy growth of our core business and demonstrating the effectiveness of our strategic focus on organic health and products under private labels. Revenues from our marketplace business were CNY 22.1 million. The change in total revenues was primarily driven by our deliberate decision to scale back the marketplace business while refining our product offering across all categories and optimizing our selection of suppliers and merchants. Our strategic focus has driven our marketplace position for sustainable growth.

Speaker #3: Reflecting the healthy growth of our core business and demonstrating the effect of our strategic focus on organic health and products, our labels revenues from the marketplace business were $22.1 million.

Speaker #3: The change in total revenues was primarily driven by our deliberate decision to scale back the marketplace business while refining our product offering across all categories and optimizing our selection of supply and merchant.

Speaker #3: Strategic moves demand to strengthen our market position for strategic growth. On the cost side, total cost of revenues increased by 3% to $92.7 million in R&D, primarily due to the high merchandise sales.

Nan Song: On the cost side, total cost of revenues increased by 3% to CNY 92.7 million, primarily due to the higher merchandise sales, which are recognized on our gross basis. Our gross margin remains resilient during the period. This was supported by strong customer loyalty to our private label products, together with our effective product curation strategy, which focus on selecting and promoting premium high-returning categories across our integrated portfolio. Now let's take a look at our operating expenses in H2 2025. Fulfillment expenses decreased to CNY 13.3 million from CNY 33.6 million a year ago. The decrease was primarily due to lower personnel costs, driven by a more optimized allocation of staffing resources. Sales and marketing expenses were CNY 42.6 million compared to CNY 49.5 million a year ago.

[Translator]: On the cost side, total cost of revenues increased by 3% to CNY 92.7 million, primarily due to the higher merchandise sales, which are recognized on our gross basis. Our gross margin remains resilient during the period. This was supported by strong customer loyalty to our private label products, together with our effective product curation strategy, which focus on selecting and promoting premium high-returning categories across our integrated portfolio. Now let's take a look at our operating expenses in H2 2025. Fulfillment expenses decreased to CNY 13.3 million from CNY 33.6 million a year ago. The decrease was primarily due to lower personnel costs, driven by a more optimized allocation of staffing resources. Sales and marketing expenses were CNY 42.6 million compared to CNY 49.5 million a year ago.

Speaker #3: Which are recognized on our growth basis, our gross margin remains resilient during the period. This was supported by strong customer loyalty to our private label products.

Speaker #3: Together with our effective product curation strategy, which focuses on selecting and promoting premium, high-retaining categories across our integrated portfolio, now let's take a look at our operating expenses in the second half of 2025.

Speaker #3: Fulfillment expenses decreased to $13.3 million from $33.6 million a year ago. The decrease was primarily due to lower personnel costs, driven by a more optimized allocation of staffing resources.

Speaker #3: Sales and marketing expenses were $42.6 million compared to $49.5 million a year ago. The change is primarily due to our fixed-over promotional efforts from online to offline channels and provide normal initiative, reflecting our agile mixing approach.

Nan Song: The trend is primarily due to our shift of promotional efforts from online to offline channel and providing normal initiatives reflecting our agile marketing approach that dynamically allocates resources based on market conditions and the customer's engagement effectiveness. Technology and content expenses was CNY 13 million compared to CNY 20.1 million a year ago. This was mainly due to the reduction in personnel costs as a result of staffing structure refinement. General and admin expenses decreased to CNY 33.5 million from CNY 96.9 million a year ago. The decrease was mainly driven by lower impairment charge on non-labor assets other than goodwill, a low allowance for credit losses, and reduced personnel costs resulting from a reduction in headcount. Our expenses objective optimization demonstrated the effectiveness of our refined management approach.

[Translator]: The trend is primarily due to our shift of promotional efforts from online to offline channel and providing normal initiatives reflecting our agile marketing approach that dynamically allocates resources based on market conditions and the customer's engagement effectiveness. Technology and content expenses was CNY 13 million compared to CNY 20.1 million a year ago. This was mainly due to the reduction in personnel costs as a result of staffing structure refinement. General and admin expenses decreased to CNY 33.5 million from CNY 96.9 million a year ago. The decrease was mainly driven by lower impairment charge on non-labor assets other than goodwill, a low allowance for credit losses, and reduced personnel costs resulting from a reduction in headcount. Our expenses objective optimization demonstrated the effectiveness of our refined management approach.

Speaker #3: That then makes the allocation of resources based on market conditions and customer engagement effectiveness. Technology and content expenses were $13 million compared to $20.1 million a year ago.

Speaker #3: This was mainly due to the reduction in personnel costs as a result of continued refinement of the staffing structure. General and administrative expenses decreased to $33.5 million from $96.9 million a year ago.

Speaker #3: The decrease was mainly driven by lower impairment on online level assets. Other than goodwill, a low allowance for credit losses and reduced personnel cost resulted from a reduction in headcount.

Speaker #3: Our expenses subjective optimization demonstrated the inflection of our refined management approach while we strictly invested in sales and marketing for offline channel development, akin component of our customers.

Nan Song: While we strategically invested in sales and marketing for offline channel development, a key component of our customer acquisition strategy, we achieved significant reduction across our expense categories. As a result, total operating expenses in the H2 of 2025 decreased to CNY 112.4 million from CNY 200.1 million in the prior year period. A 44% reduction. Correspondingly, loss from operations narrowed significantly to CNY 43 million from CNY 103.9 million a year ago. This disciplined expense management reflected continuous improvement in operating efficiency and our progress towards profitability. Net loss was CNY 32.6 million compared with CNY 115.1 million a year ago, while adjusted net loss was CNY 32.5 million compared with CNY 114 million in the prior year period.

[Translator]: While we strategically invested in sales and marketing for offline channel development, a key component of our customer acquisition strategy, we achieved significant reduction across our expense categories. As a result, total operating expenses in the H2 of 2025 decreased to CNY 112.4 million from CNY 200.1 million in the prior year period. A 44% reduction. Correspondingly, loss from operations narrowed significantly to CNY 43 million from CNY 103.9 million a year ago. This disciplined expense management reflected continuous improvement in operating efficiency and our progress towards profitability. Net loss was CNY 32.6 million compared with CNY 115.1 million a year ago, while adjusted net loss was CNY 32.5 million compared with CNY 114 million in the prior year period.

Speaker #3: Following the acquisition, we achieved a significant reduction across our expense categories. As a result, total operating expenses in the second half of 2025 decreased to $112.4 million from $200.1 million in the prior year period.

Speaker #3: A 44% reduction correspondingly, loss from operations narrowed significantly to $43 million from $103.9 million a year ago. This disciplined expense management reflected continuous improvement in operating efficiency and our progress towards profitability.

Speaker #3: Net loss was $32.6 million, compared with $115.1 million a year ago, while adjusted net loss was $32.5 million, compared with $114 million in the prior year period.

Nan Song: The continued narrowing of losses reflects the strength of our strategic focus on organic health and our effort of offering better experience to our users rather than simply operating as an e-commerce transaction platform. Basic and diluted net loss per share attributable to ordinary shares held for report narrowed to 0.02 from 0.06 in the same period of 2024. Turning to quarterly, as of 31 December 2025, we had a total of CNY 216.1 million in cash and cash equivalents, reducing cash and short-term investment on our balance sheet compared to CNY 242.8 million as of 31 December 2024. Our liquid assets remained sufficient to cover our payable obligations. At the same time, we continue to focus on optimizing working capital and managing our efforts efficiently to support our operations.

[Translator]: The continued narrowing of losses reflects the strength of our strategic focus on organic health and our effort of offering better experience to our users rather than simply operating as an e-commerce transaction platform. Basic and diluted net loss per share attributable to ordinary shares held for report narrowed to 0.02 from 0.06 in the same period of 2024. Turning to quarterly, as of 31 December 2025, we had a total of CNY 216.1 million in cash and cash equivalents, reducing cash and short-term investment on our balance sheet compared to CNY 242.8 million as of 31 December 2024. Our liquid assets remained sufficient to cover our payable obligations. At the same time, we continue to focus on optimizing working capital and managing our efforts efficiently to support our operations.

Speaker #3: The continued narrowing of losses reflects the strengthening of our strategic focus on organic health and the health effect of offering better experiences to our users, rather than simply operating as an equipment transitioning platform.

Speaker #3: Basic and diluted net loss per share attributable to ordinary shareholders both narrowed to $0.02 from $0.06 in the same period of 2024. Turning to the quarterly results, as of December 31, 2025, we had a total of $216.1 million in cash and cash equivalents.

Speaker #3: The short-term investment on our balance sheet compared to $242.8 million as of December 31, 2024. Our liquid assets remained sufficient to cover our payable obligations. At the same time, we continue to focus on optimizing working capital and managing our efforts efficiently to support our operations.

Nan Song: To summarize, in 2025, despite slow overall market growth, cautious consumer sentiment, and increasingly selective spending behavior, we continued to deliver steady improvement in our professional performance. This reflecting the resilience of our business as well as the effectiveness of our disciplined product selecting and operational execution. Our solid financial position continued to support our long-term strategic priorities, while our continued focus on resource integration and efficient asset utilization has played an important role in driving this improvement. Looking forward, we will remain focused on progress toward breakeven and further strengthening our overall financial position, while preserving the flexibility to navigate dynamic market environment to support sustainable long-term growth. This concludes our prepared remarks for today. Thank you.

[Translator]: To summarize, in 2025, despite slow overall market growth, cautious consumer sentiment, and increasingly selective spending behavior, we continued to deliver steady improvement in our professional performance. This reflecting the resilience of our business as well as the effectiveness of our disciplined product selecting and operational execution. Our solid financial position continued to support our long-term strategic priorities, while our continued focus on resource integration and efficient asset utilization has played an important role in driving this improvement. Looking forward, we will remain focused on progress toward breakeven and further strengthening our overall financial position, while preserving the flexibility to navigate dynamic market environment to support sustainable long-term growth. This concludes our prepared remarks for today. Thank you.

Speaker #3: To summarize, in 2025, this bench flow overlay made market growth caution consumer sentiment and increasingly selective spending behavior. We continued to deliver studies improvement in our flow functional.

Speaker #3: This performance reflects the resilience of our business as well as the activeness of our disciplined product selection and operational execution. Our solid financial position continues to support our long-term strategic priorities, while our continual focus on resource integration and efficient asset utilization has played an important role in driving this improvement.

Speaker #3: Looking forward, we will remain focused on progress towards break-even and further strengthening our financial position while preserving the flexibility to navigate a dynamic market environment to support sustainable, long-term growth.

Speaker #3: This concludes our prepared remarks for today. Thank you.

Operator: Thank you. That brings us to the end of today's call. Thank you for attending. You may now disconnect.

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