- Yunji's (YJ, Financial) Q4 2024 revenues decreased by 34.9% year-over-year to RMB97.1 million (US$13.3 million).
- Fiscal year 2024 revenues fell by 34.8% to RMB417.7 million.
- The company maintained a 71.9% repeat purchase rate throughout 2024.
Yunji Inc. (YJ) has announced its unaudited financial results for the fourth quarter and fiscal year 2024. The company experienced a significant decline in revenues, with Q4 2024 revenues dropping by 34.9% year-over-year to RMB97.1 million (US$13.3 million). Similarly, the fiscal year 2024 revenues saw a decrement of 34.8%, totaling RMB417.7 million (US$57.2 million). The reduction in revenue was attributed to weakened consumer confidence and a strategic shift in the company's product offerings and supplier selection.
Yunji's net loss for Q4 expanded to RMB85.0 million (US$11.7 million), compared to RMB65.9 million in the same quarter of the previous year. Despite these challenges, the company achieved a positive milestone by maintaining a 71.9% repeat purchase rate for 2024, showcasing consumer loyalty amidst their strategic repositioning. Management is concentrating efforts on transforming Yunji into a leading platform for organic health products through cost optimization, which included a 33.9% reduction in fulfillment expenses and a 29.2% reduction in technology expenses.
Looking forward, Yunji plans to pivot towards high-margin, high-repeat purchase categories, primarily focusing on organic health foods and nutritional products. The company aims to establish itself as an experiential health and wellness destination by 2025. However, with total operating expenses rising by 14.9% in Q4 2024 compared to the previous year, the path to transformation will require careful financial discipline and strategic investments.
