Yunji's Q2 2025: Unraveling Contradictions in Organic Health Strategy, Product Performance, and Market Impact

Organic health strategy and product performance, tea therapy business and user engagement, market impact and strategic focus, SUYE brand performance, product performance under the organic health strategy are the key contradictions discussed in Yunji's latest 2025Q2 earnings call.



Organic Health Strategy and Product Performance:
- Yunji's flagship product, [Youjiang] Organic Milk, achieved RMB 5 million in sales at launch.
- Other major health products like slimming coffee (over RMB 10 million), probiotic bolus (nearly RMB 7 million), and freeze-dried sea buckthorn powder (over RMB 5 million) also performed well.
- The success is attributed to Yunji's organic health strategy and alignment with China's national health agenda.

Revenue and Financial Performance:
- Total revenue for the first half of 2025 was RMB 158.3 million, compared to RMB 233.8 million a year ago, reflecting a decline of approximately 32%.
- The decline in revenue is primarily due to softer consumer confidence and strategic refinements in product selection and supply chains.

Operating Expenses and Cost Management:
- Fulfillment expenses decreased to RMB 20.6 million from RMB 42.6 million a year ago, indicating a significant reduction of approximately 51%.
- The decrease in fulfillment expenses was mainly due to reduced merchandise sales and lower warehousing and logistics costs.

Beauty Brand and Marketing Efforts:
- SUYE's PRO-XLANE FIRMING ESSENCE LOTION generated over RMB 4 million in sales at launch, with over 32% of buyers being returning dormant users.
- The success is attributed to effective marketing strategies, including partnerships with top influencers and enhancements to WeChat channels.