Yunji (NASDAQ:YJ) executives said the company made “steady and solid progress” in the second half of 2025, highlighting a sharp narrowing of losses, a continued emphasis on premium and health-focused private-label products, and ongoing efforts to shift the business toward a “product plus experience” model.
Second-half revenue and loss trends
Management reported total revenue of about CNY 159 million for the second half of 2025, excluding the impact of revenue recognized from “long-aged incentive payables to inactive members,” according to Chairman and CEO Shanglue Xiao. Senior Financial Director Nan Song said total revenues were CNY 158.7 million, down from CNY 183.8 million a year earlier.
Marketplace revenue was CNY 22.1 million. Song attributed the decline in total revenue primarily to a deliberate decision to scale back the marketplace business while refining product offerings and optimizing the selection of suppliers and merchants.
Profitability improved materially. Xiao said net loss narrowed to CNY 33 million from CNY 115 million in the prior-year period, a reduction of about 70%. Song provided more detailed figures, stating net loss was CNY 32.6 million versus CNY 115.1 million a year earlier, and adjusted net loss was CNY 32.5 million compared with CNY 114 million.
Cost and expense reductions drive operating improvement
On the cost side, Song said total cost of revenues increased 3% to CNY 92.7 million, primarily due to higher merchandise sales that are recognized on a gross basis. She added that gross margin “remained resilient” and pointed to customer loyalty to private-label products and a curation strategy centered on premium, high-retention categories.
Operating expenses declined substantially, with reductions across several categories:
- Fulfillment expenses fell to CNY 13.3 million from CNY 33.6 million, driven mainly by lower personnel costs and optimized staffing.
- Sales and marketing decreased to CNY 42.6 million from CNY 49.5 million, reflecting a shift in promotional efforts from online toward offline channels and what management described as “agile” resource allocation.
- Technology and content declined to CNY 13.0 million from CNY 20.1 million, primarily due to lower personnel costs following staffing refinements.
- General and administrative expenses dropped to CNY 33.5 million from CNY 96.9 million, driven by lower impairment charges on long-lived assets other than goodwill, a lower allowance for credit losses, and reduced headcount.
In total, operating expenses fell to CNY 112.4 million from CNY 200.1 million a year ago, a 44% reduction. Loss from operations narrowed to CNY 43.0 million from CNY 103.9 million, Song said. Basic and diluted net loss per share attributable to ordinary shareholders improved to CNY 0.02 from CNY 0.06 in the second half of 2024.
Product strategy: organic health and “food & medicine homology”
Xiao said Yunji remained committed to its strategic positioning of becoming a global leader in organic healthy living, while refining a premium product strategy and strengthening customer loyalty. A key theme in his remarks was deeper integration of organic food with health offerings, including a portfolio of what the company calls “food & medicine homology” products.
According to Xiao, in 2025 five organic food and health products each generated sales exceeding CNY 10 million:
- Yangcheng Lake hairy crabs
- Probiotic bolus
- Life Coffee
- Yingjia organic milk
- Baiyueshan freeze-dried sea buckthorn powder
He also pointed to Polygonatum tea, launched in the fourth quarter of 2025, as an example of new product momentum. Xiao said the Jiuhua Zun Polygonatum tea “quickly became one of our most popular products,” and added that as of the end of December 2025, sales of the product exceeded CNY 80 million.
SUYE brand and “value-for-money” positioning
Xiao said the company developed and tailored a “value for money” strategy for its SUYE brand in response to more rational consumer spending behavior. He cited year-over-year gains in 2025 for several SUYE lines, including a 20% increase in sales of the polypeptide series and a 32% increase in sales of rice cleansing mousse.
He also said sales of the Pro-Xylane firming series rose 26% to CNY 26.2 million in 2025 from CNY 20.7 million in 2024.
User engagement, offline expansion, and liquidity
On user operations, Xiao reported a repurchase rate of 69.7%, which he described as a reflection of customer recognition and a foundation for steady development. He also emphasized efforts to evolve Yunji from a product sales platform into a “product plus experience” platform, including supply chain traceability experiences and interactive services such as tea therapy.
As an example of traceability initiatives, Xiao said Yunji organized a tour in October 2025 for members to visit the Qinghai production area related to Baiyueshan freeze-dried sea buckthorn powder, allowing participants to observe processes from cultivation through processing. He said participation in traceability programs has been growing.
For growth initiatives, Xiao described targeted activation of dormant users, including a campaign that sent repurchase invitations to more than 50,000 dormant users, with 44.87% subsequently placing orders. He also discussed a “Super Wednesday” campaign launched in the first half of 2026 that, according to management, increased daily active users by 25% compared with normal days.
Offline expansion was another focus. Xiao said that in 2025 Yunji entered nine new cities through a local delivery model and added more than 4,000 new community leaders, which he said helped attract “high-loyalty, high-value” users.
On liquidity, Song said that as of December 31, 2025, Yunji had CNY 216.1 million in cash and cash equivalents, compared with CNY 242.8 million as of December 31, 2024 (including adjusted cash and short-term investments). She said liquid assets remained sufficient to cover payable obligations, while the company continued to optimize working capital.
Looking ahead, Song said Yunji would remain focused on progressing toward breakeven and strengthening its financial position while maintaining flexibility in a dynamic market environment. Xiao said the company would continue pursuing its organic living strategy with products and experiences as “dual growth engines,” and with efficiency and growth as core priorities.
About Yunji (NASDAQ:YJ)
Yunji Inc is a China-based social commerce company that operates a membership-focused e-commerce platform. The company offers a curated selection of lifestyle products, positioning itself as a bridge between manufacturers and end consumers. By combining technology with a membership community, Yunji aims to deliver a personalized shopping experience that emphasizes quality, affordability and social interaction.
The platform’s product portfolio spans beauty and personal care, health and wellness, household essentials, food and beverage, apparel and accessories.
