Yunji Inc Reports Mixed Q4 Earnings, Amidst Strategic Realignment and Product Innovation

Yunji Inc (YJ) reported improved gross margin at 49.4% in 2024 and a robust user repurchase rate of 71.9%. The company's private label organic health products and SUYE Pro-Ascen firming series generated substantial sales. However, total revenue decreased to RMB97.1 million, and net loss widened to RMB85 million. Yunji undertook a complete operational realignment to enhance efficiency and optimize costs.

Yunji Inc (YJ) reported a significant improvement in its gross margin, reaching 49.4% in 2024, up from previous years. The company's robust user repurchase rate of 71.9% underscores the strong trust and loyalty of its consumers. Yunji's private label organic health products, particularly the probiotic bolus and the New Life slimming coffee, generated substantial sales. The SUYE Pro-Ascen firming series also performed well, contributing to the company's financial performance.

Despite these positive developments, total revenue for the fourth quarter of 2024 decreased to RMB97.1 million, a significant drop from the previous year's RMB149.1 million. This decline was primarily attributed to ongoing refinements in the product range and optimization of the supplier and merchant network. However, the company's gross margin remained relatively strong at 48.3%, driven by customer loyalty to its private labels and effective product curation strategies.

Yunji Inc's operational expenses increased to RMB126.2 million in the first quarter of 2025, primarily due to increased business promotion expenses and severance payments from staffing restructures. The company reported a net loss of RMB85 million for the same period, compared to RMB65.9 million in the previous year. This widening of the net loss can be attributed to the increased expenses and the impact of severance costs on the bottom line.

The company has undertaken a complete operational realignment to enhance efficiency and optimize costs. This restructuring includes the consolidation of the health business and Yunji finance business, enabling the company to provide more trusted healthy living solutions. Yunji's strategic initiatives, such as the Jianxin Tea Therapy Program, aim to foster customer loyalty and engagement, further strengthening its position in the organic health market.

Looking ahead, Yunji Inc remains committed to its vision as the global leader in organic living. The company plans to continue optimizing its product line to create standout products that offer exceptional value for money. By leveraging cost reductions achieved in 2024, Yunji aims to enhance profitability and achieve breakeven in the future. The company is also evolving into a service experience platform, embracing the opportunities of the silver economy.

References:
[1] https://finance.yahoo.com/news/q4-2024-yunji-inc-earnings-030409922.html