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Yunji InvestorRoom Yunji Announces Third Quarter 2021 Unaudited Financial Results HANGZHOU , China , Nov. 29 , 2021 / PRNewswire / -- Yunji Inc. ( " Yunji " or the " Company " ) ( NASDAQ : YJ ) , a leading membership - based social e - commerce platform , today announced its unaudited financial results for the third quarter ended September 30 , 2021 [ 1 ] . Third Quarter 2021 Highlights • Total revenues in the third quarter of 2021 were RMB437.9 million ( US $ 68.0 million ) , compared with RMB1,066.7 million in the same period of 2020 , primarily due to the Company's strategy to refine its product selection across all categories and carefully curate products to implement its megahit product pool initiative focusing on the development of private labels and exclusive products . In line with the Company's long - term growth strategy to focus on profitability , the Company optimized its selection of suppliers and merchants during this refinement process , causing near - term decreases in both its marketplace business and merchandise sales . • Repeat purchase rate [ 2 ] in the twelve months ended September 30 , 2021 was 80.6 % . Mr. Shanglue Xiao , Chairman and Chief Executive Officer of Yunji , said , " In the third quarter , we continued to execute our product curation and supply chain differentiation strategies . Leveraging our differentiated supply chain , we have launched a series of private label products , ranging across a variety of categories including food , cosmetics , supplements , and more . We strive to continually improve our repeat purchase rate and achieve widespread product - market fit for our branded products . We remain optimistic in our differentiated supply chain matrix providing our members with great value . " " As we continued to successfully execute the initiative to refine our product pool , our gross margin continued to improve . We recorded income from operations of RMB17.6 million ( US $ 2.7 million ) in the third quarter of 2021 , compared with RMB16.0 million in the second quarter of 2021 and loss from operations of RMB24.4 million in the third quarter of 2020. We also recorded net income of RMB61.4 million ( US $ 9.5 million ) in the third quarter of 2021 , compared with net income of RMB17.0 million in the second quarter of 2021 and net loss of RMB43.6 in the third quarter of 2020. Going forward , we believe our strategy to continue developing private - label brands will generate lasting value for our shareholders . " said Mr. Chengqi Zhang , Yunji's Vice President of Finance . Third Quarter 2021 Unaudited Financial Results Total revenues were RMB437.9 million ( US $ 68.0 million ) , compared with RMB1,066.7 million in the same period of 2020. The decrease was primarily due to the Company's decision to upgrade its strategy to carefully curate products starting from the first quarter of 2021. As part of these upgrades , the Company launched its megahit product pool initiative , which focused on introducing more products with strong repurchase potential and developing private labels and exclusive products . In line with the Company's long - term growth strategy to focus on profitability , the Company optimized its selection of suppliers and merchants across its platform , which caused sales decreases in both its marketplace business and merchandise sales . • Revenues from sales of merchandise , net decreased by 60.2 % to RMB365.5 million ( US $ 56.7 million ) from RMB919.0 million in the same period of 2020 . • Revenues from the membership program were RMB1.7 million , compared with RMB4.9 million in the same period of 2020. From January 2020 until the end of March 2021 , the Company allowed all its users to enjoy membership benefits free of charge for one year simply by registering for an account on the Yunji app . The Company discontinued free membership as of April 1 , 2021. As a result , revenues from the membership program in the third quarter of 2021 were from paying members who joined the new membership program launched in the second quarter of 2021 , while membership revenues in the same period of 2020 were all from the deferred revenue of prior paying members . • Revenues from the marketplace business were RMB64.7 million ( US $ 10.0 million ) , compared with RMB130.4 million in the same period of 2020 . • Other revenues decreased by 51.1 % to RMB6.0 million ( US $ 0.9 million ) from RMB12.3 million in the same period of 2020 . Total cost of revenues decreased by 66.9 % to RMB248.6 million ( US $ 38.6 million ) , or 56.8 % of total revenues , from RMB751.7 million , or 70.5 % of total revenues , in the same period of 2020. The decrease was mainly attributable to the decline in merchandise sales , for which revenues are recognized on a gross basis . Total cost of revenues was mainly comprised of the costs related to the sales of merchandise in the third quarter of 2021 . Total operating expenses decreased by 43.6 % to RMB 193.8 million ( US $ 30.1 million ) from RMB343.6 million in the same period of 2020 . • Fulfillment expenses decreased by 55.2 % to RMB40.6 million ( US $ 6.3 million ) , or 9.3 % of total revenues , from RMB90.5 million , or 8.5 % of total revenues , in the same period of 2020. The decrease was primarily due to : ( i ) reduced warehousing and logistics expenses due to lower merchandise sales , ( ii ) reduced personnel costs due to staffing structure refinements , and ( iii ) decreased service fees charged by third - party payment settlement platforms . • Sales and marketing expenses decreased by 62.3 % to RMB59.8 million ( US $ 9.3 million ) , or 13.7 % of total revenues , from RMB158.9 million , or 14.9 % of total revenues , in the same period of 2020. The decrease was mainly due to the decreases in member management fees and business promotion expenses . • Technology and content expenses decreased by 32.6 % to RMB28.5 million ( US $ 4.4 million ) , or 6.5 % of total revenues , from RMB42.3 million , or 4.0 % of total revenues , in the same period of 2020. The decrease was mainly due to the reduction in personnel costs as a result of staffing structure refinements and reduced server costs . • General and administrative expenses increased by 25.1 % to RMB64.8 million ( US $ 10.1 million ) , or 14.8 % of total revenues , from RMB51.8 million , or 4.9 % of total revenues , in the same period of 2020 , primarily due to an increase in share - based compensation expenses . Income from operations was RMB17.6 million ( US $ 2.7 million ) , compared with loss from operations of RMB24.4 million in the same period of 2020 . Financial loss , net was RMB30.1 million ( US $ 4.7 million ) , compared with RMB19.6 million in the same period of 2020 , primarily due to decreased fair value of equity securities with readily determinable fair value . Other non - operating income , net was RMB110.5 million ( US $ 17.1 million ) in the third quarter of 2021 compared with nil in the same period of 2020. The income in the third quarter of 2021 was recognized from the Company's investment in a fast - growing dairy company in China . The investment was initially recorded under equity method and changed to alternative measurement when the Company lost its significant influence . The RMB 110.5 million ( US $ 17.1 million ) gain was recognized based on fair value of investment made by a new third - party investor , resulting in dilution of the Company's shareholding interest . Net Income was RMB61.4 million ( US $ 9.5 million ) , compared with net loss of RMB43.6 million in the same period of 2020 . Adjusted net income ( non - GAAP ) [ ³ ] was RMB76.3 million ( US $ 11.8 million ) , compared with adjusted net loss of RMB36.4 million in the same period of 2020 . Basic and diluted net Earnings per share attributable to ordinary shareholders were both RMB0.03 , compared with basic and diluted net loss per share attributable to ordinary shareholders of RMB0.02 in the same period of 2020 . Change in Management