Yunji Inc. (NASDAQ: YJ), a top social e-commerce network focused on membership, officially reported its third quarter unaudited financial results ended September 30, 20201.
Compared to $421.5 million in the same timeframe in 2019, gross revenues were $157.1 million, largely attributable to a decline in revenues from retail sales due to a rise in the proportion of the company’s business contributed from its marketplace business. Marketplace industry revenues are recorded on a net basis and attributed to market income, while merchandising revenues are recognised on a gross basis and contributed to merchandise profits, respectively.
Revenues from merchandise sales, net, fell from $375.7 million in the same period of 2019 by 62.8 percent to $135.4 million. As the Corporation continues to optimise its capital allocation strategy to further boost the operating efficiencies of its marketplace sector on the cloud, the decline was largely attributed to the decrease in GMV related to product sales.
Membership scheme sales amounted to $0.7 million, relative to $31.4 million in the same period in 2019. The decline was due to the continued refining of its membership enrollment scheme by the Company. The Business has allowed any individual to become a member and receive membership benefits free of charge for one year beginning in January 2020 by simply registering for an account on the Yunji app. In the third quarter of 2020, the income from the subscription scheme was generated from the deferred revenue of previous paid members.
Marketplace market profits grew by 51.1 percent from $13.12 million in the same period of 2019 to $19.2 million as a result of the increased number of famous products and retailers on the company’s website and increased transactions on other sites from a variety of sales channels.
As a result of an increase in warehousing and logistic services offered to third parties, other sales rose by 52.9 per cent to $1.8 million from $1.22 million in the same period of 2019.
With the results, the company disclosed that, for personal reasons, Mr. Chen Chen has quit from his position as CFO of the Company, effective December 31, 2020.
In addition, the organisation has reported that Mr. Chengqi Zhang has been elevated to Vice President of Finance.
It was in November 2019 that Mr. Zhang first joined Yunji. Mr. Zhang had been an audit director at Deloitte since 2007, prior to joining the group. He is a member of the American Certified Public Accountants Institute (AICPA).