Artificial Intelligence
Yunji Announces Third Quarter 2020 Unaudited Financial Results
HANGZHOU, China, Nov. 26, 2020 (GLOBE NEWSWIRE) — Yunji Inc. (“Yunji” or the “Company”) (NASDAQ: YJ), a leading membership-based social e-commerce platform, today announced its unaudited financial results for the third quarter ended September 30, 20201.
Third Quarter 2020 Highlights
- GMV2 in the third quarter of 2020 was RMB9.4 billion (US$1.4 billion), compared with RMB9.2 billion in the same period of 2019. GMV related to marketplace revenues in the third quarter of 2020 was RMB7.3 billion (US$1.1 billion), compared with RMB3.2 billion in the same period of 20195.
- Total revenues in the third quarter of 2020 were RMB1,066.7 million (US$157.1 million), compared with RMB2,773.1 million in the same period of 2019, primarily due to an increase in the proportion of the Company’s business contributed from its marketplace business, which recognizes revenues on a net basis.
- Transacting members3 in the twelve months ended September 30, 2020, continued to increase to 13.0 million due to the Company’s ongoing refinement of its membership enrollment system since January 2020.
Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, “During the third quarter of 2020, we continued to focus on developing our differentiated supply chain management, promoting fast-moving merchandise with high repeat purchase rates, and supporting small specialty businesses to better serve our e-commerce community. At the same time, we made meaningful progress in the establishment of innovative marketing channels and utilized diverse content formats, such as short-form video and live streaming, to better present and promote those products sourced from our quality supply chain. Going forward, we plan to further leverage our supply chain’s competitive advantages in cost control and operational efficiency, establish collaborations with top-tier and mid-tier streamers to introduce more products to our e-commerce community, and provide support and resources to more of those joint-venture brands and emerging brands with high growth potential. Consequently, the success of these brands will help to continue fueling the growth and profitability of our own platform.”
“Our third quarter financial results demonstrated the effectiveness of our cost control measures. On a year-over-year basis, we narrowed our loss from operations by 79.3% and our net loss by 14.9% in the third quarter. We also continued to improve our cost structures, maintain our strong cash reserves, and advance towards our goal of achieving healthy, profitable, and sustainable growth. Additionally, to meet our operational and liquidity needs, we continued to closely and proactively monitor our cash flow, making a consistent effort to secure increasingly favorable terms for Yunji in our settlement of payments while also sustaining a healthy level of working capital,” said Mr. Chen Chen, Chief Financial Officer of Yunji.
Third Quarter 2020 Unaudited Financial Results
Total revenues were RMB1,066.7 million (US$157.1 million), compared with RMB2,773.1 million in the same period of 2019, primarily due to a decrease in revenues from sales of merchandise as a result of an increase in the proportion of the Company’s business contributed from its marketplace business. Revenues generated through the marketplace business are recognized on a net basis and contributed to marketplace revenues, while revenues generated from merchandise sales are recognized on a gross basis and contributed to sales of merchandise, net.
- Revenues from sales of merchandise, net, decreased by 62.8% to RMB919.0 million (US$135.4 million) from RMB2,472.0 million in the same period of 2019. The decrease was primarily due to the decrease in GMV related to merchandise sales as the Company continued to refine its resource allocation plan to further improve the operational efficiencies of its marketplace business on the platform.
- Revenues from the membership program were RMB4.9 million (US$0.7 million), compared with RMB206.7 million in the same period of 2019. The decrease was due to the Company’s ongoing refinement of its membership enrollment system. Beginning in January 2020, the Company has allowed any user to become a member and enjoy membership benefits free of charge for one year by simply registering for an account on the Yunji app. Revenues from the membership program in the third quarter of 2020 were from the deferred revenue of prior paying members.
- Revenues from the marketplace business increased by 51.1% to RMB130.4 million (US$19.2 million) from RMB86.3 million in the same period of 2019 as a result of the increased number of popular brands and merchants on the Company’s platform and the increased sales from a diverse range of sales channels on other platforms.
- Other revenues increased by 52.9% to RMB12.3 million (US$1.8 million) from RMB8.0 million in the same period of 2019 as a result of an increase in warehousing and logistic services provided to third parties.
Total cost of revenues decreased by 67.0% to RMB751.7 million (US$110.7 million) from RMB2,280.4 million in the same period of 2019. The decrease was mainly attributable to the decline in merchandise sales, which recognize revenues on a gross basis. Total cost of revenues was mainly comprised of those costs related to the sales of merchandise revenue in the third quarter of 2020 as a result of launching the free membership program in January 2020.
Total operating expenses decreased by 46.0% to RMB343.6 million (US$50.6 million) from RMB636.4 million in the same period of 2019.
- Fulfillment expenses decreased by 55.7% to RMB90.5 million (US$13.3 million), or 8.5% of total revenues, from RMB204.2 million, or 7.4% of total revenues, in the same period of 2019. The decrease was primarily attributable to: (i) reduced warehousing and logistics expenses due to lower merchandise sales and improved logistics efficiency, (ii) decreased third-party payment transaction fees due to lower commission rates, and (iii) reduced personnel costs due to headcount optimization.
- Sales and marketing expenses decreased by 42.9% to RMB158.9 million (US$23.4 million), or 14.9% of total revenues, from RMB278.4 million, or 10.0% of total revenues, in the same period of 2019. The decrease was mainly due to the reduction in member management fees as a result of improvements to member management efficiency.
- Technology and content expenses decreased by 53.0% to RMB42.3 million (US$6.2 million), or 4.0% of total revenues, from RMB90.1 million, or 3.2% of total revenues, in the same period of 2019. The decrease was mainly due to: (i) reduced server costs resulting from the better contract terms that the Company secured with its server providers, and (ii) reduced personnel costs as a result of headcount optimization.
- General and administrative expenses decreased by 18.6% to RMB51.8 million (US$7.6 million), or 4.9% of total revenues, from RMB63.7 million, or 2.3% of total revenues, in the same period of 2020. The decrease was mainly due to decreased share-based compensation expenses, including a reversal of share-based compensation expenses of RMB19.1 million that had been recognized in prior periods, and reduced other personnel costs as a result of headcount optimization.
Loss from operations was RMB24.4 million (US$3.6 million), compared with RMB118.0 million in the same period of 2019.
Net loss was RMB43.6 million (US$6.4 million), compared with RMB51.3 million in the same period of 2019.
Adjusted net loss4 was RMB36.4 million (US$5.4 million), compared with RMB24.9 million in the same period of 2019.
Basic and diluted net loss per share attributable to ordinary shareholders was RMB0.02 (US$0.003), compared with RMB0.02 in the same period of 2019.
Recent Developments
Today, the Company announced that Mr. Chen Chen has resigned from his position as the Company’s Chief Financial Officer due to personal reasons, effective December 31, 2020. The Company is grateful for Mr. Chen’s valuable contribution to the Company during his term with the Company. In addition, the Company announced the promotion of Mr. Chengqi Zhang to Vice President of Finance. His responsibilities at Yunji have primarily included corporate finance, tax, funding, internal controls, legal and compliance.
Mr. Zhang first joined Yunji in November 2019. Prior to joining the Company, Mr. Zhang had been an audit director at Deloitte since 2007. Mr. Zhang is a member of the American Institute of Certified Public Accountants (AICPA). Mr. Zhang received a Bachelor’s degree from Shanghai University of Finance And Economics.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses adjusted net income/(loss) as a supplemental measure to review and assess operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines adjusted net income/(loss) as net income/(loss) excluding share-based compensation.
The Company presents adjusted net income/(loss) because it is used by management to evaluate operating performance and formulate business plans. Adjusted net income/(loss) enables management to assess operating performance without considering the impact of share-based compensation recorded under ASC 718, “Compensation-Stock Compensation”. The Company also believes that the use of this non-GAAP measure facilitates investors’ assessment of operating performance.
This non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. One of the key limitations of using adjusted net income/(loss) is that it does not reflect all items of income and expense that affect the Company’s operations. Share-based compensation has been and may continue to be incurred in Yunji’s business and is not reflected in the presentation of adjusted net income/(loss). Further, this non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited.
The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. Yunji encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of Non-GAAP Measures to The Most Directly Comparable Financial Measures” set forth at the end of this press release.
Conference Call
The Company will host a conference call on Thursday, November 26, 2020, at 7:00 AM Eastern Time or 8:00 PM Beijing/Hong Kong Time to discuss its earnings.
In advance of the conference call, all participants must use the following link to complete the online registration process. Upon registering, each participant will receive important details for this conference including the call date and time, a unique registrant ID, and a set of participant dial-in numbers to join the conference call.
A telephone replay of the call will be available after the conclusion of the conference call for one week.
Dial-in numbers for the replay are as follows:
United States Toll Free | +1-855-452-5696 | |
International | +61-2-8199-0299 | |
Conference ID | 3625568 |
Safe Harbor Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the quotations from management in this announcement, as well as Yunji’s strategic and operational plans, contain forward-looking statements. Yunji may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Yunji’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yunji’s growth strategies; its future business development, results of operations and financial condition; its ability to understand buyer needs and provide products and services to attract and retain buyers; its ability to maintain and enhance the recognition and reputation of its brand; its ability to rely on merchants and third-party logistics service providers to provide delivery services to buyers; its ability to maintain and improve quality control policies and measures; its ability to establish and maintain relationships with merchants; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of China’s e-commerce market; PRC governmental policies and regulations relating to Yunji’s industry, and general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Yunji’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Yunji undertakes no obligation to update any forward-looking statement, except as required under applicable law.
About Yunji Inc.
Yunji Inc. is a leading social e-commerce platform in China that has pioneered a unique, membership-based model to leverage the power of social interactions. The Company’s e-commerce platform offers high-quality products at attractive prices across a wide variety of categories catering to the day-to-day needs of Chinese consumers. In addition, the Company uses advanced technologies including big data and artificial intelligence to optimize user experience and incentivize members to promote the platform as well as share products with their social contacts. Through deliberate product curation, centralized merchandise sourcing, and efficient supply chain management, Yunji has established itself as a trustworthy e-commerce platform with high-quality products and exclusive membership benefits, including discounted prices.
For more information, please visit https://investor.yunjiglobal.com/
Investor Relations Contact
Yunji Inc.
Investor Relations
Email: [email protected]
Phone: +1 (646) 224-6957
ICR, Inc.
Xinran Rao
Email: [email protected]
Phone: +1 (646) 224-6957
YUNJI INC. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
As of | |||||||
December 31, 2019 |
September 30, 2020 |
||||||
RMB | RMB | US$ | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | 883,369 | 946,432 | 139,394 | ||||
Restricted cash | 84,374 | 116,204 | 17,115 | ||||
Short-term investments | 774,736 | 180,907 | 26,645 | ||||
Accounts receivable, net | 28,527 | 178,965 | 26,359 | ||||
Advance to suppliers | 87,289 | 103,177 | 15,196 | ||||
Inventories, net | 428,322 | 290,299 | 42,756 | ||||
Amounts due from related parties | 6,830 | 11,460 | 1,688 | ||||
Prepaid expenses and other current assets | 567,432 | 520,887 | 76,718 | ||||
Total current assets | 2,860,879 | 2,348,331 | 345,871 | ||||
Non-current assets | |||||||
Property and equipment, net | 45,344 | 34,986 | 5,153 | ||||
Long-term investments9 | 198,860 | 181,877 | 26,788 | ||||
Deferred tax assets | 97,792 | 74,969 | 11,041 | ||||
Operating lease right-of-use assets, net | 43,043 | 23,239 | 3,423 | ||||
Other non-current assets | 56,281 | 146,616 | 21,594 | ||||
Total non-current assets | 441,320 | 461,687 | 67,999 | ||||
Total assets | 3,302,199 | 2,810,018 | 413,870 | ||||
YUNJI INC. | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except for share and per share data, unless otherwise noted) |
|||||||
As of | |||||||
December 31, 2019 |
September 30, 2020 |
||||||
RMB | RMB | US$ | |||||
LIABILITIES AND SHAREHOLDERS’ (DEFICITS)/EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | 741,959 | 594,306 | 87,531 | ||||
Deferred revenue | 181,828 | 69,774 | 10,277 | ||||
Incentive payables to members | 384,486 | 317,886 | 46,820 | ||||
Refund payable to members7 | 26,883 | 4,932 | 726 | ||||
Member management fees payable | 78,355 | 32,708 | 4,817 | ||||
Other payable and accrued liabilities | 349,111 | 309,935 | 45,649 | ||||
Amounts due to related parties | 18,296 | 22,868 | 3,368 | ||||
Operating lease liabilities – current | 17,559 | 12,020 | 1,770 | ||||
Total current liabilities | 1,798,477 | 1,364,429 | 200,958 | ||||
Non-current liabilities | |||||||
Operating lease liabilities | 27,734 | 14,480 | 2,133 | ||||
Deferred tax liabilities | 11,329 | 4,427 | 652 | ||||
Total non-current liabilities | 39,063 | 18,907 | 2,785 | ||||
Total Liabilities | 1,837,540 | 1,383,336 | 203,743 |
YUNJI INC. |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (All amounts in thousands, except for share and per share data, unless otherwise noted) |
As of | |||||||||
December 31, 2019 |
September 30, 2020 |
||||||||
RMB | RMB | US$ | |||||||
Shareholders’ equity | |||||||||
Ordinary shares | 70 | 70 | 10 | ||||||
Less: Treasury stock | (96,669 | ) | (106,574 | ) | (15,697 | ) | |||
Additional paid-in capital | 7,255,404 | 7,328,702 | 1,079,401 | ||||||
Statutory reserve | 11,633 | 11,633 | 1,714 | ||||||
Accumulated other comprehensive income | 88,863 | 59,542 | 8,770 | ||||||
Accumulated deficit | (5,805,332 | ) | (5,872,797 | ) | (864,970 | ) | |||
Total Yunji Inc. shareholders’ equity | 1,453,969 | 1,420,576 | 209,228 | ||||||
Non-controlling interests | 10,690 | 6,106 | 899 | ||||||
Total shareholders’ equity | 1,464,659 | 1,426,682 | 210,127 | ||||||
Total liabilities and shareholders’ equity | 3,302,199 | 2,810,018 | 413,870 |
YUNJI INC. |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (All amounts in thousands, except for share and per share data, unless otherwise noted) |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||
September 30, 2019 |
September 30, 2020 |
September 30, 2019 |
September 30, 2020 |
|||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Revenues: | ||||||||||||||||||
Sales of merchandise, net | 2,471,967 | 919,043 | 135,360 | 8,423,739 | 3,664,225 | 539,682 | ||||||||||||
Membership program revenue | 206,749 | 4,925 | 725 | 630,932 | 42,392 | 6,244 | ||||||||||||
Marketplace revenue5 | 86,302 | 130,437 | 19,211 | 142,709 | 448,151 | 66,006 | ||||||||||||
Other revenues | 8,047 | 12,305 | 1,812 | 25,290 | 48,077 | 7,081 | ||||||||||||
Total revenues | 2,773,065 | 1,066,710 | 157,108 | 9,222,670 | 4,202,845 | 619,013 | ||||||||||||
Operating cost and expenses: | ||||||||||||||||||
Cost of revenues | (2,280,434 | ) | (751,701 | ) | (110,714 | ) | (7,394,568 | ) | (2,953,430 | ) | (434,992 | ) | ||||||
Fulfillment | (204,241 | ) | (90,543 | ) | (13,336 | ) | (771,388 | ) | (357,632 | ) | (52,673 | ) | ||||||
Sales and marketing | (278,410 | ) | (158,905 | ) | (23,404 | ) | (880,981 | ) | (638,917 | ) | (94,102 | ) | ||||||
Technology and content | (90,051 | ) | (42,330 | ) | (6,234 | ) | (240,290 | ) | (158,844 | ) | (23,395 | ) | ||||||
General and administrative | (63,698 | ) | (51,838 | ) | (7,635 | ) | (190,945 | ) | (197,681 | ) | (29,115 | ) | ||||||
Total operating cost and expenses | (2,916,834 | ) | (1,095,317 | ) | (161,323 | ) | (9,478,172 | ) | (4,306,504 | ) | (634,277 | ) | ||||||
Other operating income6 | 25,818 | 4,218 | 621 | 44,363 | 27,995 | 4,123 | ||||||||||||
Loss from operations | (117,951 | ) | (24,389 | ) | (3,594 | ) | (211,139 | ) | (75,664 | ) | (11,141 | ) | ||||||
Financial income/(loss), net | 51,889 | (19,596 | ) | (2,886 | ) | 82,842 | (1,168 | ) | (172 | ) | ||||||||
Foreign exchange (loss)/income, net | (225 | ) | (2,238 | ) | (330 | ) | (7,839 | ) | 121 | 18 | ||||||||
Other non-operating income, net | 8,444 | – | – | 8,444 | – | – | ||||||||||||
Loss before income tax benefit, and equity in loss of affiliates, net of tax | (57,843 | ) | (46,223 | ) | (6,810 | ) | (127,692 | ) | (76,711 | ) | (11,295 | ) | ||||||
Income tax benefit8 | 8,170 | 4,401 | 648 | 11,908 | 4,561 | 672 | ||||||||||||
Equity in loss of affiliates, net of tax | (1,596 | ) | (1,793 | ) | (264 | ) | (3,136 | ) | (2,200 | ) | (324 | ) | ||||||
Net loss | (51,269 | ) | (43,615 | ) | (6,426 | ) | (118,920 | ) | (74,350 | ) | (10,947 | ) | ||||||
Less: net income/(loss) attributable to non-controlling interests shareholders | 85 | (1,209 | ) | (178 | ) | 2,345 | (6,885 | ) | (1,014 | ) | ||||||||
Net loss attributable to YUNJI INC. | (51,354 | ) | (42,406 | ) | (6,248 | ) | (121,265 | ) | (67,465 | ) | (9,933 | ) |
YUNJI INC. | |||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (CONTINUED) (All amounts in thousands, except for share and per share data, unless otherwise noted) |
|||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
September 30, 2019 |
September 30, 2020 |
September 30, 2019 |
September 30, 2020 |
||||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||
Accretion on convertible redeemable preferred shares to redemption value | – | – | – | (1,532,013 | ) | – | – | ||||||||||||
Net loss attributable to ordinary shareholders | (51,354 | ) | (42,406 | ) | (6,248 | ) | (1,653,278 | ) | (67,465 | ) | (9,933 | ) | |||||||
Net loss | (51,269 | ) | (43,615 | ) | (6,426 | ) | (118,920 | ) | (74,350 | ) | (10,947 | ) | |||||||
Other comprehensive income/(loss) | |||||||||||||||||||
Foreign currency translation adjustment | 40,839 | (46,904 | ) | (6,908 | ) | 52,651 | (29,321 | ) | (4,318 | ) | |||||||||
Total comprehensive loss | (10,430 | ) | (90,519 | ) | (13,334 | ) | (66,269 | ) | (103,671 | ) | (15,265 | ) | |||||||
Less: total comprehensive income/(loss) attributable to non-controlling interests shareholders | 85 | (1,209 | ) | (178 | ) | 2,345 | (6,885 | ) | (1,014 | ) | |||||||||
Total comprehensive loss attributable to YUNJI INC. | (10,515 | ) | (89,310 | ) | (13,156 | ) | (68,614 | ) | (96,786 | ) | (14,251 | ) | |||||||
Net loss attributable to ordinary shareholders | (51,354 | ) | (42,406 | ) | (6,248 | ) | (1,653,278 | ) | (67,465 | ) | (9,933 | ) | |||||||
Weighted average number of ordinary shares used in computing net loss per share, basic and diluted | 2,158,732,256 | 2,125,377,454 | 2,125,377,454 | 1,708,326,984 | 2,124,763,012 | 2,124,763,012 | |||||||||||||
Net loss per share attributable to ordinary shareholders | |||||||||||||||||||
Basic | (0.02 | ) | (0.02 | ) | (0.003 | ) | (0.97 | ) | (0.03 | ) | (0.005 | ) | |||||||
Diluted | (0.02 | ) | (0.02 | ) | (0.003 | ) | (0.97 | ) | (0.03 | ) | (0.005 | ) |
YUNJI INC. | |||||||||||||
NOTES TO UNAUDITED FINANCIAL INFORMATION (All amounts in thousands, except for share and per share data, unless otherwise noted) |
|||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||
September 30, 2019 |
September 30, 2020 |
September 30, 2019 |
September 30, 2020 |
||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
Share-based compensation expenses included in: | |||||||||||||
Technology and content | 3,200 | 346 | 51 | 9,487 | 7,702 | 1,134 | |||||||
General and administrative | 19,565 | 1,006 | 148 | 59,249 | 57,736 | 8,504 | |||||||
Fulfillment | 1,739 | 1,609 | 237 | 7,510 | 9,316 | 1,372 | |||||||
Sales and marketing | 1,866 | 4,262 | 628 | 21,723 | 9,367 | 1,380 | |||||||
Total | 26,370 | 7,223 | 1,064 | 97,969 | 84,121 | 12,390 |
YUNJI INC. | ||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST DIRECTLY COMPARABLE FINANCIAL MEASURES (All amounts in thousands, except for share and per share data, unless otherwise noted) |
||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||
September 30, 2019 |
September 30, 2020 |
September 30, 2019 |
September 30, 2020 |
|||||||||||||||
RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
Reconciliation of Net Loss to Adjusted Net (Loss)/Income: | ||||||||||||||||||
Net loss | (51,269 | ) | (43,615 | ) | (6,426 | ) | (118,920 | ) | (74,350 | ) | (10,947 | ) | ||||||
Add: Share-based compensation10 | 26,370 | 7,223 | 1,064 | 97,969 | 84,121 | 12,390 | ||||||||||||
Adjusted net (loss)/income | (24,899 | ) | (36,392 | ) | (5,362 | ) | (20,951 | ) | 9,771 | 1,443 |
__________________________
1. | This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB6.7896 to US$1.00, the exchange rate in effect as of the end of September 2020 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System. | |
2. | “GMV” refers to the total value of all orders for merchandise placed in the Company’s merchandise business and marketplace business, including the value of the merchandise sold as part of the membership packages, as well as the VAT and tax surcharges paid, regardless of whether the merchandises are returned and without taking into consideration any discounts and incentives. GMV includes the value from orders placed on the Company’s mobile apps as well as orders placed on third-party mobile apps and websites that are fulfilled by Yunji, by Yunji’s third-party merchants, or by Yunji’s third-party business partners. Yunji’s revenues recognized on a gross basis are net of the VAT and related tax surcharges paid, discounts and incentives, the value of the merchandises returned, and any adjustments due to the timing difference between shipping and receipt, which are included in the above GMV measure. Yunji’s revenues recognized on a net basis are net of the corresponding amount to be paid to the vendor, the principal in the transaction, in addition to the items mentioned above, which are included in the above GMV measure. | |
3. | “Transacting member” in a given period refers to a member who successfully promotes Yunji’s products to generate at least one order or places at least one order on Yunji’s platform, regardless of whether any product in such order is ultimately sold or delivered or whether any product in such order is returned. | |
4. | Adjusted net income/(loss) is a non-GAAP financial measure, which is defined as net income/(loss) excluding share-based compensation expense. See “Reconciliation of Non-GAAP Measures to The Most Directly Comparable Financial Measures” set forth at the end of this press release. | |
5. | In the first quarter of 2019, the Company launched its marketplace business model, allowing third-party merchants to sell their products on the platform and pay commissions on their sales to the Company. The revenues from marketplace business is recognized on a net basis. | |
6. | Starting from 2020, the Company presents government grants, which are received from local government to support and reward the Company’s ongoing business and operations, as Other operating income. The relevant item in the prior year periods of RMB14,325 and RMB32,870 for the three and nine months ended September 30, 2019 are also reclassified from Other non-operating income, net, to be in conformity with the current period presentation in the unaudited condensed consolidated statements of comprehensive loss. | |
7. | The estimation of refunds payable to members is based upon the historical data of referral incentives earned by referring members within their active life cycle. On a quarterly basis, the Company revisits the estimation with a consistently applied approach and the most up-to-date data. The balance of refund payable to members reflected the best estimation of the Company as of September 30, 2020, and the decrease as compared to the balance as of December 31, 2019 was consistent with the Company’s understanding of its members’ referral behavior in light of its ongoing refinement of its membership enrollment system and an increase of refunds payable to members of RMB0.8 million resulting from a change in the estimated amount of that liability, which represented the negative revenue and income/(loss) from operations impact for the third quarter of 2020. | |
8. | Income tax benefit for the third quarter of 2020 was RMB4.4 million (US$0.6 million), compared to RMB8.2 million in the same period of 2019. The Company’s effective tax rate was changed primarily due to changes in the profitability of its subsidiaries that have different tax rates, including non-deductible share-based compensation expenses, and increased valuation allowance as the Company will not be able to utilize tax loss carry forwards generated by certain unprofitable subsidiaries. | |
9. | As of September 30, 2020, the balance of long-term investment mainly represented an equity security with readily determinable fair value, which was remeasured based upon market price at each period end and recorded the unrealized changes in Financial income/(loss), net, in the Consolidation Statements of Comprehensive Loss. | |
10. | The decrease of share-based compensation expenses was mainly due to the reversal of previously recognized share-based compensation expenses in a total amount of RMB24.1 million as a result of headcount optimization, in which RMB1.8 million, RMB0.6 million, RMB2.6 million and RMB 19.1 million were recorded previously in fulfillment expenses, sales and marketing expenses, technology and content expenses and general and administrative expenses, respectively. |
Artificial Intelligence
XtalPi Unveils XtalGazer: A Comprehensive AI-Driven Polymorph Selection Platform
CAMBRIDGE, Mass., March 28, 2024 /PRNewswire/ — XtalPi Inc., a leading global technology company in integrating artificial intelligence (AI) and robotics to advance the discovery of groundbreaking medicine and innovative materials, announced today the launch of its proprietary comprehensive solid form discovery and selection platform, XtalGazer. This advanced platform aims to significantly improve the polymorph selection process for the pharmaceutical industry by integrating AI- and automation-powered experimental and computational approaches.
XtalGazer provides a total solution for delivering high-quality polymorph screening and selection methods to expedite drug development and mitigate risks. It represents a paradigm shift in solid-state research, moving from the traditional trial-and-error approach to a data-driven, design-led methodology. The platform provides an expansive suite of foundational tools to accelerate polymorph discovery, characterization, and selection process, empowering pharmaceutical companies to conduct thorough research with less active pharmaceutical ingredient (API) in shorter development cycles.
A key component of XtalGazer is XtalCSP, a crystal structure prediction platform to perform global searches of crystal structures for target molecules and the other optional components in the corresponding searching space, offering a deep insight into possible stable forms. Furthermore, crystallization strategy recommendations will provide AI-backed experimental design to help avoid human bias. XtalGazer also utilizes MicroED to rapidly elucidate crystal structures from powder samples, reducing the need for growing single crystals.
XtalPi’s launch of XtalGazer marks another significant step in the company’s ongoing exploration of solid-state research. From crystal structure prediction platforms being one of the first products to launch at XtalPi, to today’s comprehensive polymorph selection platform, XtalPi will keep fulfilling its promise to solving challenging problems in this space. XtalPi will continue to deliver faster, more accurate, and more comprehensive approaches to building an ecosystem for the R&D process in solid-state, pre-formulation and crystallization.
For more information about XtalPi, please visit www.xtalpi.com.
About XtalPi:
XtalPi is an innovative technology company powered by artificial intelligence (AI) and robotics. Founded in 2015 on the MIT campus, XtalPi is dedicated to driving intelligent and digital transformation in the life science and new materials industries. With tightly interwoven quantum physics, AI, cloud computing, and large-scale clusters of robotic workstations, XtalPi offers a range of technology solutions, services, and products to accelerate and empower innovation for biopharmaceutical and new materials companies worldwide.
Media Contact: Vivienne [email protected]
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View original content:https://www.prnewswire.co.uk/news-releases/xtalpi-unveils-xtalgazer-a-comprehensive-ai-driven-polymorph-selection-platform-302102794.html
Artificial Intelligence
ICIS and Base Oil News Announce Partnership to Enhance Market Insights
LONDON, March 28, 2024 /PRNewswire/ — ICIS, a global source of commodity intelligence, is pleased to announce a strategic partnership with Base Oil News, a premier news outlet founded by industry expert Iain Pocock that provides in-depth coverage of the base oils and lubricants market. This collaboration marks a significant milestone in the dissemination and exchange of critical market data and insights.
With more than two decades of journalism experience at Bloomberg, Reuters, and Argus Media, Iain Pocock brings unparalleled expertise to this partnership. His deep understanding of illiquid energy markets makes him a credible and influential figure in the industry. Since November 2023, Iain has been working closely with ICIS to share and exchange valuable data and insights, enhancing the services both platforms offer to the base oils and lubricants market.
Through the collaboration, Iain integrates ICIS’ extensive content and data resources in Base Oil News market coverage. In return, he contributes market insights to ICIS News, including expert and exclusive analysis of supply and demand dynamics, price margins, and other critical market drivers. This exchange ensures that subscribers of both ICIS and Base Oil News have access to the most comprehensive, timely, and accurate market information, empowering them to make informed decisions.
“It’s a very exciting partnership – where we leverage each other’s strengths and provide actionable insights to our customers,” said Iain Pocock, Founder of Base Oil News. “The market is the winner.”
“As ICIS is already the world’s most trusted pricing benchmark for base oils, this collaboration with Iain Pocock and Base Oil News provides an even stronger and deeper service to our customers,” said Stephen Burns, Editorial Director at ICIS. “Iain’s expertise and extensive industry connections are invaluable, and we have established a fruitful partnership that benefits the market at large.”
For the latest insights from Iain Pocock on ICIS News, visit ICIS News.
About ICIS
ICIS – Independent Commodity Intelligence Services – helps businesses through seamlessly delivering data and analytics, across the chemical, fertilizer and energy markets. A trusted source and benchmark for price information and insight across key commodities markets worldwide. Our independent, transparent market intelligence informs thousands of quality decisions every day, taking the pressure out of negotiations and giving customers space for more innovative thinking, through published datasets including price assessments, price forecasts, supply and demand fundamentals and more.
Over 150 years of shaping the world by connecting markets to optimise the world’s valuable resources. With a global team of more than 600 experts, ICIS has employees based in London, New York, Houston, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Dubai, Sao Paulo, Seoul, Tokyo and Perth.
ICIS is part of RELX, a FTSE15 company with a market cap of £64bn and an employee base of over 30,000 experts across 40 countries.
About RELX
RELX is a global provider of information and analytics for professional and business customers across industries. The Group serves customers in more than 180 countries and has offices in about 40 countries. It employs approximately 30,000 people of whom almost half are in North America. RELX PLC is a London listed holding company which owns 52.9% of RELX Group. RELX NV is an Amsterdam listed holding company which owns 47.1% of RELX Group. The shares are traded on the London, Amsterdam and New York Stock Exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX and RENX. Total market capitalisation is approximately £64bn | €75bn | $81bn.
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Artificial Intelligence
Trianz Welcomes Israel Abraham as Vice President of Services for Extrica.ai – The Data to AI Platform
SANTA CLARA, Calif., March 28, 2024 /PRNewswire/ — Digital transformation technology & services company Trianz is pleased to announce the appointment of Israel Abraham as Vice President of Extrica Platform Services.
Trianz has embarked on a transformative journey, redefining its value proposition with an ‘IP Led’ model, with a commitment to deliver the fastest time to value, lowest human dependence, and highest ROI. Central to this approach are our hyper-automated platforms, Concierto.Cloud, Extrica.AI, and Pulse, driving industry-leading transformations in cloud, data and analytics, AI, and the digital workplace.
Israel Abraham is a very well-known pioneer and industry leader in AI, data management, and analytics systems, with over three decades of experience. He joins as the services leader for Extrica- the Trianz Data to AI platform, which productizes data, provides data a face and purpose, and accelerates time to insights and AI by 50% or more. In the role of Extrica Services leader, Israel will lead the shaping, visioning, and delivery of Extrica.ai based enterprise wide datamesh, BI, and AI solutions for customers worldwide.
“We are thrilled to welcome Israel Abraham to the Trianz family,” said Sri Manchala, CEO of Trianz and author of Crossing the Digital Faultline. “He is a leader in modernization as well as conceptualization of data platforms anew. Israel’s prior background in the industry with financial services and insurance giants underscores our commitment to securing top-tier talent that brings real-world experiences and needs to our technology platforms. As we continue to broaden our footprint in the digital transformation space, Israel’s visionary leadership and practical experience will serve as the cornerstone in accelerating insights and AI to deliver transformative value to our clients.”
Having played pivotal roles in highly reputed and large organizations such as Liberty Mutual Insurance, MassMutual, Safeco, and CNA Insurance, Israel has garnered recognition as a seasoned leader in big data and AI cloud implementations. His accolades include the prestigious 2014 Ventana Research IT Innovation Award, the 2009 Informatica MDM Innovation Award, and three filed Data Engineering patents in the last four years.
“Trianz has been at the forefront of digital innovation, and Extrica.ai is a paradigm shifting data to AI platform that completely changes how analytics and AI are delivered- much faster, taking business ahead of change. I am excited to scale the adoption of the Extrica platform, which has attracted attention from giants across the industry and hyperscalers,” said Israel Abraham. “I look forward to engaging with customers, bringing my own experiences, and collaborating with the talented team at Trianz to further enhance the capabilities of the Extrica Platform Services to transform data & AI strategies, execution, and outcomes for customers.”
About Trianz
Trianz is a leading-edge technology platforms and services company that accelerates digital transformations at Fortune 100 and emerging companies worldwide in data & analytics, digital experiences, cloud infrastructure, and security. Our ‘IP Led Transformations’ approach, informed by insights from a recent global study spanning 20+ industries and 5000+ companies, addresses challenges posed by the rapid pace of AI-driven transformation, digital talent scarcity, and economic uncertainty. Our IP and platforms, including Concierto, Extrica, and Pulse, revolutionize cloud adoption, data analytics, and AI insights, empowering organizations to navigate the complexities of digital transformation seamlessly.
Founded in California and with an organization of over 2,000 associates across the United States and India, Trianz is a Premier Partner of AWS, consistently rated #1 by clients for value delivery over the past five years. Trianz has been ranked as one of the best Consulting Firms by Forbes and has been certified as a Great Place to Work for three years in a row. To learn more about Trianz, email [email protected] or visit www.trianz.com.
Watch Trianz CEO Sri Manchala’s insightful interview with Bloomberg on Partner | Crossing The Digital Faultline & Leading Towards Transformative Success – YouTube and delve deeper into his book Crossing the Digital Faultline at Crossing the Digital Faultline | Trianz.
Trianz Media [email protected] +1-408-387-5800
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View original content:https://www.prnewswire.co.uk/news-releases/trianz-welcomes-israel-abraham-as-vice-president-of-services-for-extricaai–the-data-to-ai-platform-302102589.html
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