Gathering Four Seasons: New mall business growth, turning losses into profit in the fourth quarter and beyond

Gathering Four Seasons: New mall business growth, turning losses into profit in the fourth quarter and beyond
On March 24, China’s leading social-driven premium membership e-commerce platform Yunji (NASDAQ: YJ) released its financial results reviewed in the fourth quarter and fiscal year 2019 ended December 31, 2019.The financial report shows that, in the 2019 and fourth quarters, Yunji achieved profitability.The financial report shows that in 2019, the GMV of Yunji increased to 35.2 billion (RMB, the same below), and the total revenue was 116.7.2 billion.According to the non-GAAP statistical caliber, the annual adjusted net profit of Yunji is 4.4 million yuan in 2019, and the net replacement is 2 million yuan in 2018.Among them, in the fourth quarter of 2019, Yunji GMV increased from 81 trillion in the same period in 2018 to 110 trillion, a long-term increase of 36.1%.The financial report shows that in the fourth quarter of 2019, the GMV related to the mall business reached 5 billion US dollars, accounting for 45% of the total GMV in the fourth quarter, and the mall business revenue was 1.6.9 billion yuan, compared with zero in the same period in 2018.The financial report shows that Yunji also achieved profitability in the fourth quarter of 2019.According to the non-GAAP statistical caliber, Yunji ‘s adjusted net profit for the fourth quarter of 2019 was 25.3 million yuan (US $ 3.6 million), compared with 9.2 million yuan in the same period in 2018.In this regard, Chen Chen, Chief Financial Officer of Yunji, said: “In the fourth quarter of 2019, our net shortening narrowed by 42.6%.The adjusted net income for the whole year of 2019 increased by 174 in the previous year.1%, and realized the adjusted net profit for the year of 2019, while the expected net profit for 2018 is adjusted.It may be that our gross profit margin increased to 24 in the fourth quarter of 2019.3%, compared with 18 in the same period in 2018.1%, which is mainly due to our continuous optimization of brand management and commodity supply, and our continuous efforts to improve our operational efficiency, thereby promoting cost-effective transactions on our platform.In fact, through the expansion of the business scale of the mall and the continuous optimization of the operating model, the operating costs of the cloud cluster are also decreasing.The financial report shows that in the fourth quarter of 2019, Yunji’s performance costs have increased from 3 in the same period in 2018.7.4 billion fell to 1.9.5 billion yuan, a decrease of 48.0%.As a gathering of e-commerce members, its membership still maintains a steady growth.The financial report shows that the number of gathered members increased from 12.3 million on September 30, 2019 to 13.8 million, an increase of 12.3%; and as of December 31, 2019, in the past 12 months, trading members increased from 6.1 million to 9.6 million, an increase of 57 compared with the same period in 2018.4%.The increase in the number of members has benefited from the continuous improvement of the member registration system, which provides a way to obtain membership.It is reported that any user conservatively becomes a member by registering an account on the Yunji APP, and enjoys one year of membership rights for free.If the user reaches a certain cumulative consumption amount or meets some other requirements within the first year, he can extend his membership for one year.Under the influence of this year’s epidemic, based on the advantages of social-driven member e-commerce, Yunji has successively launched a series of “Spring Light Program”, anti-epidemic and agricultural assistance, “arms of arms” and other series of gradually supporting merchants to operate normallyIt is clear, and at the same time, it has built a broad platform for members to achieve flexible employment under the epidemic situation.Sauna, Ye Wang Bai Jinlei editor Zhao Ze proofreading Li Shihui