Yunji Inc. American Depository Shares 2026 Q2 Earnings Call

Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji's first-half 2026 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer, and Ms. Nan Song, Senior Financial Director. As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on the company's current expectations and current market operating conditions and relate to events that invoke known or unknown risks, uncertainties and other factors of Yunji and its industry. These forward-looking statements can be identified by terminologies such as "will," "expect," "anticipate," "continue," or other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to the company's related documents filed with the U.S. SEC. Any forward-looking statements that the company makes on this call are based on assumptions as of today and are expressly qualified in the entirety by cautionary statements, risk factors, and details of its filing with the SEC.

The company does not undertake any obligation to update these statements except as required under applicable law. With that, I will now turn the call over to Mr. Shanglue Xiao, Chairman and CEO of Yunji. Please go ahead, sir. 各位投资者和分析师朋友大家好。感谢各位对云集的持续关注和支持。2026年上半年，市场环境仍然充满挑战，但我们坚守有机生活引领者的战略定位，通过产品和体验双轮驱动，在有机健康生活领域持续深耕。接下来我将向大家汇报公司的财务表现和战略执行情况。 Hello everyone, welcome to Thank you for your patience.

You may restart the presentation.

Okay. Hello everyone. Welcome to Yunji's earnings call. Thank you for your continued interest and support. The market environment remained challenging in the first half of 2026. We stayed firmly committed to our strategic positioning as a leader in organic living, advancing our products and experience through engine strategy as we continue to deepen our presence in the organic health living market. I will now walk you through the company's financial performance and strategic execution.

首先和大家分享一些财务的数据，这些数据反映了我们主动优化结构、提质增效的经营思路。 Let me begin by sharing some financial highlights, which result our proactive approach to optimizing our structure and improving quality and efficiency.

上半年公司总收入为人民币9,630万元，同比有所下滑。这是我们主动优化产品组合，清退低效第三方商家带来的结构性调整。现阶段自营商品在整体销售额中的占比逐步提升到70%，其中自有品牌的销售额占到56%。高毛利自有品牌商品正逐渐成为公司收入的核心支撑。同时，通过溯源等体验举措加强打磨客户心智，保持稳定的客户粘性，有利于提高公司的盈利水平和长期发展。 Total revenue for the first half was RMB 96.3 million, compared with RMB 158.3 million in the first period last year.

This reflects the structural adjustment from our proactive efforts to optimize the merchandise mix, including discontinuing relationships with certain third-party merchants whose offerings did not meet our enhanced product standards. While this affected our near-term revenue, we believe it has strengthened our merchandise mix in support of our long-term strategy. Self-operating merchandise now accounts for approximately 70% of the total sales, of which private label products accounted for 56%. Private label products with higher margins are increasingly becoming the core support for our revenue. Our experiential initiatives such as the supply chain traceability continue to strengthen customer engagement and maintain stable customer retention, supporting improved profitability and long-term development.

同时，毛利率水平保持稳健，亏损收窄成效显著。本期综合毛利率维持在41%左右。上半年净亏损降低至7,240万元，净亏损对比去年同期实现大幅度改善。这源于我们对于成本管控和运营高效的坚持，把资金集中投向高复购、高毛利的自有产品与用户体验建设。我们对未来盈利改善十分有信心。 At the same time, our gross margin remained resilient and our losses narrowed significantly.

Gross margin for the period held steady at approximately 41% and the net loss for the first half narrowed to RMB 72.4 million, a substantial improvement compared with the same period last year. This reflects our continued discipline in cost management and operational efficiency as we directed resources toward high retention, high margin private label products and toward enhancing the user experience. We remain confident in our path to improved profitability.

接下来让我来向大家介绍上半年的业务开展情况。 Next, let me walk you through our business progress in the first half.

我们的战略核心是打造有机健康、有机食品和美妆护肤产品矩阵，并向药食同源产品延伸，配合产品与体验双引擎，赋能云集有机健康生态。 Our strategy rests on two engines: product and experience.

On the product side, we continue to build out our organic health, organic food, and beauty and skincare matrix, with food medicine homology products as a growing focus within organic health. Together, our products and experience dual-engine approach powers Yunji's organic health ecosystem.

在有机健康板块，我们持续在大健康领域深耕，重点布局药食同源赛道，贴合现代家庭健康需求。我们在药食同源赛道的首个明星产品是黄金茶。该产品2025年四季度正式上线，依托得天独厚的原产地、实打实的品质和精细化的加工工艺，上线后市场反馈远超预期，迅速成为药食同源产品线支柱。黄金茶上半年销售额呈快速增长态势，单品跑通完整增长模型，充分验证我们切入中式养生赛道的产品策略具备广阔的市场空间。 In our organic health segment, we continue to deepen our presence in the broader health and wellness market, with a particular focus on food medicine homology products that address the health needs of the modern families in China.

Our first flagship product in this category is Polygonum tea, which launched in the fourth quarter of 2025. Supported by premium origin sourcing, genuine quality, and refined processing techniques, the product received market feedback that exceeded our expectations. It quickly became a key growth driver of our food medicine homology product line. In the first half of 2026, Polygonum tea delivered rapid sales growth and has successfully validated our complete growth model. This demonstrates that our product strategy for entering the Chinese wellness and health market has a long-term market potential.