Artificial Intelligence

Yunji Announces Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results

Published

3 years ago

March 22, 2021

HANGZHOU, CHINA, March 22, 2021 (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 fourth quarter and fiscal year ended December 31, 2020¹.

Fourth Quarter 2020 Highlights

GMV² in the fourth quarter of 2020 was RMB11.7 billion (US$1.8 billion), compared with RMB11.0 billion in the same period of 2019. GMV related to marketplace revenues in the fourth quarter of 2020 was RMB9.5 billion (US$1.5 billion), compared with RMB5.0 billion in the same period of 2019.
Total revenues in the fourth quarter of 2020 were RMB1,327.4 million (US$203.4 million), compared with RMB2,449.4 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 December 31, 2020, continued to increase to 13.3 million. The increase was mainly attributable to the Company’s ongoing refinement of its membership enrollment system since January 2020 as well as its introduction of more quality product offerings, which helped to further augment the platform’s user stickiness in the quarter.

Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji, said, “We were glad to see that our efforts to fortify and differentiate our supply chain throughout 2020 enabled us provide our service managers with more quality products to share throughout their networks. Moreover, it was also rewarding to see that our platform users were quite receptive to the initiatives that we implemented in order to provide them with a more unique and convenient social e-commerce experience.”

“We significantly reduced loss of operations in the full year of 2020 compared to the full year of 2019. Such results demonstrated the effectiveness of our operating efficiency improvement plan, which we executed over the course of the year. Going forward, we plan to maintain this steady growth momentum for our operations and to focus on bolstering our other competitive advantages over the long term,” said Mr. Chengqi Zhang, Vice President of Finance of Yunji.

Fourth Quarter 2020 Unaudited Financial Results

Total revenues were RMB1,327.4 million (US$203.4 million), compared with RMB2,449.4 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 45.2% to RMB1,165.2 million (US$178.6 million) from RMB2,124.6 million in the same period of 2019. The decrease was primarily due to a portion of merchandise sales shifted to marketplace business platform as the Company continued to reallocate its internal resources to accommodate the increase of marketplace business and to further improve the operational efficiencies on the platform.
Revenues from the membership program were RMB0.04 million (US$0.007 million), compared with RMB145.9 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 fourth quarter of 2020 were from the deferred revenue of prior paying members.
Revenues from the marketplace business decreased by 10.3% to RMB151.7 million (US$23.3 million) from RMB169.2 million in the same period of 2019 due to the increase in promotional activities during the period and the decrease in commission rates charged to merchants during these promotional activities.
Other revenues increased by 8.2% to RMB10.5 million (US$1.6 million) from RMB9.7 million in the same period of 2019.

Total cost of revenues decreased by 46.8% to RMB986.6 million (US$151.2 million) from RMB1,854.9 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 fourth quarter of 2020.

Total operating expenses decreased by 44.5% to RMB367.9 million (US$56.4 million) from RMB662.4 million in the same period of 2019.

Fulfillment expenses decreased by 52.5% to RMB92.5 million (US$14.2 million), or 7.0% of total revenues, from RMB194.5 million, or 7.9% 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 service fees charged by third-party payment settlement platforms as the Company secured lower transaction fee rates, (iii) reduced personnel costs due to headcount optimization and (iv) decreased share-based compensation expenses, which included a reversal of RMB6.0 million in share-based compensation expenses that had been recognized in prior periods.
Sales and marketing expenses decreased by 45.4% to RMB167.2 million (US$25.6 million), or 12.6% of total revenues, from RMB306.5 million, or 12.5% 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 the Company’s improvements to its member management efficiency. This decrease was partially offset by an increase in business promotion expenses, which resulted from the Company’s efforts to attract more popular brands and merchants to its marketplace business through the execution of more business development activities.
Technology and content expenses decreased by 41.3% to RMB44.0 million (US$6.7 million), or 3.3% of total revenues, from RMB74.9 million, or 3.1% 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 25.8% to RMB64.2 million (US$9.8 million), or 4.8% of total revenues, from RMB86.5 million, or 3.5% of total revenues, in the same period of 2019. The decrease was mainly due to reduced personnel costs as a result of headcount optimization, and decreased share-based compensation expenses, which included a reversal of RMB3.1 million in share-based compensation expenses that had been recognized in prior periods. The decrease was partially offset by higher professional service fees.

Loss from operations was RMB21.8 million (US$3.3 million), compared with RMB46.9 million in the same period of 2019.

Net loss was RMB77.3 million (US$11.9 million), compared with RMB4.9 million in the same period of 2019. The difference from loss from operations to net loss was mainly attributable to the income tax expenses provided during the period.

Adjusted net loss⁴ was RMB63.1 million (US$9.6 million), compared with adjusted net income RMB25.3 million in the same period of 2019.

Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.04 (US$0.01), compared with RMB0.002 in the same period of 2019.

Fiscal Year 2020 Unaudited Financial Results

Total revenues were RMB5,530.3 million (US$847.5 million), compared with RMB11,672.0 million in the full year of 2019, which was primarily due to the same factors that led to the quarterly decrease.

Revenues from sales of merchandise, net decreased by 54.2% to RMB4,829.4 million (US$740.1 million) from RMB10,548.3 million in the full year of 2019. The decrease was due to the same factors that led to the quarterly decrease.
Revenues from the membership program decreased by 94.5% to RMB42.4 million (US$6.5 million) from RMB776.8 million in the full year of 2019, which was due to the same factors that led to the quarterly decrease.
Revenues from the marketplace business increased by 92.3% to RMB599.9 million (US$91.9 million) from RMB311.9 million in the full year of 2019 as a result of the increased number of popular brands and merchants on the Company’s platform and the increased sales through a diverse range of sales channels on other platforms.
Other revenues increased by 67.5% to RMB58.5 million (US$9.0 million) from RMB34.9 million in the full year of 2019.

Total costs of revenues decreased by 57.4% to RMB3,940.0 million (US$603.8 million) from RMB9,249.5 million in the full year of 2019. This decrease was mainly attributable to the same factors that led to the quarterly decrease.

Total operating expenses were RMB1,720.9 million (US$263.7 million), compared with RMB2,746.0 million in the full year of 2019.

Fulfillment expenses decreased by 53.4% to RMB450.1 million (US$69.0 million), or 8.1% of total revenues, from RMB965.9 million, or 8.3% of total revenues, in the full year of 2019, which was mainly due to the same factors that led to the quarterly decrease.
Sales and marketing expenses decreased by 32.1% to RMB806.1 million (US$123.5 million), or 14.6% of total revenues, from RMB1,187.5 million, or 10.2% of total revenues, in the full year of 2019, which was mainly due to the same factors that led to the quarterly decrease.
Technology and content expenses decreased by 35.6% to RMB202.8 million (US$31.1 million), or 3.7% of total revenues, from RMB315.2 million, or 2.7% of total revenues, in the full year of 2019, which was mainly due to the same factors that led to the quarterly decrease.
General and administrative expenses decreased by 5.6% to RMB261.9 million (US$40.1 million), or 4.7% of total revenues, from RMB277.5 million, or 2.4% of total revenues, in the full year of 2019, which was mainly due to the same factors that led to the quarterly decrease.

Loss from operations was RMB97.5 million (US$14.9 million), compared with RMB254.8 million in the full year of 2019.

Net loss was RMB151.7 million (US$23.2 million), compared with RMB123.8 million in the full year of 2019.

Adjusted net loss⁴ was RMB53.3 million (US$9.0 million), compared with adjusted net income of RMB4.4 million in the full year of 2019.

Basic and diluted net loss per share attributable to ordinary shareholders were both RMB0.07 (US$0.01), compared with RMB0.91 in the full year of 2019.

Recent Developments

Mr. Hui Ma will resign from his position as the Company’s Chief People Officer and Chief Strategy Officer due to personal reasons, effective April 1, 2021. Mr. Ma will continue to serve as a consultant to the Company following his resignation. Mr. Ma’s resignation did not result from any disagreement with the Company. The Company is grateful for Mr. Ma’s valuable contribution to the Company during his term with the Company, in particular his contribution to the Company’s strategic positioning, and wishes his continued success in the future.

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 Monday, March 22, 2021, at 7:00 AM Eastern Time or 7:00 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.

Conference ID	1335755
Registration Link	http://apac.directeventreg.com/registration/event/1335755

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	1335755

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	December 31, 2020
	RMB	RMB	US$
ASSETS
Current Assets
Cash and cash equivalents	883,369	1,063,900	163,050
Restricted cash	84,374	125,844	19,287
Short-term investments	774,736	134,146	20,559
Accounts receivable, net (Allowance for credit losses of nil and RMB8,603, respectively)	28,527	164,733	25,246
Advance to suppliers	87,289	103,836	15,914
Inventories, net	428,322	135,245	20,727
Amounts due from related parties	6,830	7,841	1,202
Prepaid expenses and other current assets (Allowance for credit losses of nil and RMB2,972, respectively)	567,432	410,423	62,899

Total current assets	2,860,879	2,145,968	328,884

Non-current assets
Property and equipment, net	45,344	26,010	3,986
Long-term investments⁸	198,860	158,931	24,357
Deferred tax assets	97,792	59,455	9,112
Operating lease right-of-use assets, net	43,043	11,324	1,735
Other non-current assets (Allowance for credit losses of nil and RMB1,514, respectively)	56,281	148,793	22,804

Total non-current assets	441,320	404,513	61,994

Total assets	3,302,199	2,550,481	390,878


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	December 31, 2020
	RMB	RMB	US$
LIABILITIES AND SHAREHOLDERS’ (DEFICITS)/EQUITY
Current Liabilities
Accounts payable	741,959	501,549	76,866
Deferred revenue	181,828	50,951	7,809
Incentive payables to members	384,486	312,170	47,842
Refund payable to members⁶	26,883	4,398	674
Member management fees payable	78,355	45,841	7,025
Other payable and accrued liabilities	349,111	280,586	43,002
Amounts due to related parties	18,296	22,989	3,523
Operating lease liabilities – current	17,559	6,988	1,071

Total current liabilities	1,798,477	1,225,472	187,812

Non-current liabilities
Operating lease liabilities	27,734	8,309	1,273
Deferred tax liabilities	11,329	1,832	281

Total non-current liabilities	39,063	10,141	1,554

Total Liabilities	1,837,540	1,235,613	189,366


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		December 31, 2020
	RMB		RMB		US$

Shareholders’ equity
Ordinary shares	70		70		11
Less: Treasury stock	(96,669	)	(85,202	)	(13,058	)
Additional paid-in capital	7,255,404		7,327,148		1,122,935
Statutory reserve	11,633		12,624		1,934
Accumulated other comprehensive income	88,863		9,452		1,449
Accumulated deficit	(5,805,332	)	(5,952,085	)	(912,197	)
Total Yunji Inc. shareholders’ equity	1,453,969		1,312,007		201,074
Non-controlling interests	10,690		2,861		438
Total shareholders’ equity	1,464,659		1,314,868		201,512
Total liabilities and shareholders’ equity	3,302,199		2,550,481		390,878


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 Year Ended
	December 31, 2019		December 31, 2020				December 31, 2019		December 31, 2020
	RMB		RMB		US$		RMB		RMB		US$
Revenues:
Sales of merchandise, net	2,124,583		1,165,172		178,570		10,548,322		4,829,397		740,138
Membership program revenue	145,907		46		7		776,839		42,438		6,503
Marketplace revenue	169,205		151,744		23,256		311,914		599,895		91,938
Other revenues	9,659		10,450		1,602		34,949		58,527		8,970
Total revenues	2,449,354		1,327,412		203,435		11,672,024		5,530,257		847,549
Operating cost and expenses:
Cost of revenues	(1,854,906	)	(986,567	)	(151,198	)	(9,249,474	)	(3,939,997	)	(603,830	)
Fulfillment	(194,495	)	(92,472	)	(14,172	)	(965,883	)	(450,104	)	(68,981	)
Sales and marketing	(306,481	)	(167,223	)	(25,628	)	(1,187,462	)	(806,140	)	(123,546	)
Technology and content	(74,877	)	(43,973	)	(6,739	)	(315,167	)	(202,817	)	(31,083	)
General and administrative	(86,542	)	(64,196	)	(9,839	)	(277,487	)	(261,877	)	(40,135	)
Total operating cost and expenses	(2,517,301	)	(1,354,431	)	(207,576	)	(11,995,473	)	(5,660,935	)	(867,575	)
Other operating income⁵	21,072		5,223		800		68,646		33,218		5,091
Loss from operations	(46,875	)	(21,796	)	(3,341	)	(254,803	)	(97,460	)	(14,935	)
Financial income/(loss), net	38,528		(7,403	)	(1,135	)	121,370		(8,571	)	(1,314	)
Foreign exchange loss, net	(4,558	)	(1,040	)	(159	)	(12,397	)	(919	)	(141	)
Other non-operating income/(loss), net	3,264		(1,610	)	(247	)	8,497		(1,610	)	(247	)
Loss before income tax benefit/(expense), and equity in (loss)/income of affiliates, net of tax	(9,641	)	(31,849	)	(4,882	)	(137,333	)	(108,560	)	(16,637	)
Income tax benefit/(expense)⁷	4,812		(43,859	)	(6,722	)	16,720		(39,298	)	(6,022	)
Equity in (loss)/income of affiliates, net of tax	(85	)	(1,634	)	(249	)	(3,221	)	(3,834	)	(586	)
Net loss	(4,914	)	(77,342	)	(11,853	)	(123,834	)	(151,692	)	(23,245	)
Less: net (loss)/income attributable to non-controlling interests shareholders	(417	)	1,539		236		1,928		(5,346	)	(819	)
Net loss attributable to YUNJI INC.	(4,497	)	(78,881	)	(12,089	)	(125,762	)	(146,346	)	(22,426	)

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 Year Ended
	December 31, 2019		December 31, 2020				December 31, 2019		December 31, 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	(4,497	)	(78,881	)	(12,089	)	(1,657,775	)	(146,346	)	(22,426	)
Net loss	(4,914	)	(77,342	)	(11,853	)	(123,834	)	(151,692	)	(23,245	)
Other comprehensive (loss)/income
Foreign currency translation adjustment	(19,353	)	(50,090	)	(7,677	)	33,298		(79,411	)	(12,170	)
Total comprehensive loss	(24,267	)	(127,432	)	(19,530	)	(90,536	)	(231,103	)	(35,415	)
Less: total comprehensive (loss)/income attributable to non-controlling interests shareholders	(417	)	1,539		236		1,928		(5,346	)	(819	)
Total comprehensive loss attributable to YUNJI INC.	(23,850	)	(128,971	)	(19,766	)	(92,464	)	(225,757	)	(34,596	)
Net loss attributable to ordinary shareholders	(4,497	)	(78,881	)	(12,089	)	(1,657,775	)	(146,346	)	(22,426	)
Weighted average number of ordinary shares used in computing net loss per share, basic and diluted	2,145,378,511		2,128,849,797		2,128,849,797		1,818,487,917		2,125,906,398		2,125,906,398
Net loss per share attributable to ordinary shareholders
Basic	(0.002	)	(0.04	)	(0.01	)	(0.91	)	(0.07	)	(0.01	)
Diluted	(0.002	)	(0.04	)	(0.01	)	(0.91	)	(0.07	)	(0.01	)

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 Year Ended
	December 31, 2019	December 31, 2020				December 31, 2019	December 31, 2020
	RMB	RMB		US$		RMB	RMB	US$
Share-based compensation expenses included in⁹:
Technology and content	1,075	1,184		186		10,562	8,887	1,288
General and administrative	19,762	14,042		2,146		79,011	71,777	10,403
Fulfillment	1,230	(3,963	)	(557	)	8,740	5,352	776
Sales and marketing	8,161	2,995		452		29,884	12,362	1,792
Total	30,228	14,258		2,227		128,197	98,378	14,259

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 Year Ended
	December 31, 2019		December 31, 2020				December 31, 2019		December 31, 2020
	RMB		RMB		US$		RMB		RMB		US$
Reconciliation of Net Loss to Adjusted Net (Loss)/Income:
Net loss	(4,914	)	(77,342	)	(11,853	)	(123,834	)	(151,692	)	(23,245	)
Add: Share-based compensation⁹	30,228		14,258		2,227		128,197		98,378		14,259
Adjusted net income/(loss)	25,314		(63,084	)	(9,626	)	4,363		(53,314	)	(8,986	)

__________________________________
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 RMB6.5250 to US$1.00, the exchange rate in effect as of the end of December 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.	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 RMB7,518 and RMB43,599 for the three months and year ended December 31, 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.
6.	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 December 31, 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 decrease of refunds payable to members of RMB0.4 million and 23.5 million resulting from a change in the estimated amount of that liability, which represented the positive revenue and income/(loss) from operations impact fourth quarter and full year of 2020, respectively.
7.	Income tax expense for the fourth quarter of 2020 was RMB43.9 million (US$6.7 million), compared to Income tax benefit RMB4.8 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.
8.	As of December 31, 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.
9.	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 RMB10.9 million and 42.2 million as a result of headcount optimization, in which RMB6.0 million and 8.9 million, RMB3.1 million and 25.9 million, RMB1.5 million and RMB3.0 million, RMB0.3 million and RMB4.5 million were recorded previously in fulfillment expenses, general and administrative expenses, sales and marketing expenses, and technology and content expenses, for the fourth quarter and full year of 2020, respectively.

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Artificial Intelligence

CUBE acquires global regulatory intelligence businesses from Thomson Reuters

Published

1 hour ago

May 17, 2024

CISION (PR Newswire)

LONDON, May 17, 2024 /PRNewswire/ — CUBE, a global leader in Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM), announces today its acquisition of the Thomson Reuters Regulatory Intelligence and Oden products and businesses.

The acquisition of these global businesses represents a major step forward in CUBE’s growth plans. It will deliver significant scale across many of the world’s leading and systemically important financial institutions. CUBE’s existing global customer base will be expanded to total approximately 1,000 customers in banking, insurance, asset and investment management, payments and adjacent regulated industries.
CUBE’s global employees will expand to 600, of which close to 250 are highly qualified regulatory subject matter experts, legal and compliance professionals.
Ben Richmond, founder and CEO of CUBE said: “Thomson Reuters is known to be the biggest and best in the industry for providing regulatory expert analysis and subject matter expertise, alongside world-leading journalism and news. The combination of CUBE’s purpose-built AI, with the years of content curated by Thomson Reuters Regulatory Intelligence and Oden expert analysts, will accelerate innovation. Together, we will deliver regulatory transformation capabilities for our global customers that could only have been imagined before.”
Richmond continues: “This combination will provide tremendous scale and depth across CUBE’s regulatory content and technology. It is a significant step toward creating an industry-defining regulatory compliance and risk platform that will benefit all customers and elevate the industry as a whole.”
Through this acquisition, CUBE will provide an expanded and comprehensive selection of specialized regulatory intelligence and regulatory change services, committed to excellence, quality, and highly contextualised and meaningful regulatory content for customers. By combining cutting-edge technology and subject matter expertise at scale CUBE will set a new bar for the industry in regulatory automation and content.
Chris Maguire, General Manager, Risk and Fraud, Corporates, Thomson Reuters said: “It was clear to us that CUBE had established itself as a leading regulatory intelligence provider for global enterprise clients in the financial services and insurance sectors. We wanted to ensure our customers and employees could work with an organisation that would continue to innovate and significantly invest in solutions like Thomson Reuters Regulatory Intelligence and Oden. We are working tirelessly to ensure a seamless and value-enhancing transition for customers and employees, and we are looking forward to working with the CUBE team during this transition.”
Christopher Fielding, Hg, said: “We’re delighted to further extend our market reach, bringing in two high quality and complementary global businesses to the CUBE platform.”
Thomas Martin, Hg, added: “We see these acquisitions as enabling further innovation in the regulatory intelligence and change management sector, leading to strengthened demand for these quality solutions across the globe.”
The terms of the transaction will not be disclosed.
About CUBE
CUBE provides a highly comprehensive and robust source of classified, and meaningful AI-driven regulatory data to power its Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM) solutions. CUBE’s purpose-built regulatory technology including its AI engine (RegBrain) and software platform (RegPlatform) tracks, analyses, and monitors laws, rules, and regulations in every country and in every published language to create an always up-to-date regulatory footprint that transforms visibility and compliance capability for customers across the globe.
With operations across Europe, North America, Canada, Asia, and Australia, CUBE serves a diverse and global base of customers and partners including the largest financial institutions in the world who leverage CUBE’s platform to streamline their complex regulatory intelligence and change management processes.
Following the strategic partnership with Hg in March 2024, CUBE announced the acquisition of US-based Reg-Room in May 2024.
About Hg
Hg supports the building of sector-leading enterprises that supply businesses with critical software applications or workflow services, delivering a more automated workplace for their customers.
This industry is characterised by digitisation trends that are in early stages of adoption and are set to transform the workplace for professionals over decades to come. Hg’s support combines deep end-market knowledge with world class operational resources, together providing compelling support to entrepreneurial leaders looking to scale their business – businesses that are well invested, enduring and serve their customers well.
With a vast European network and strong presence across North America, Hg’s 400 employees and around $70 billion in funds under management support a portfolio of around 50 businesses, worth over $140 billion aggregate enterprise value, with over 110,000 employees, consistently growing revenues at more than 20%.
About Regulatory Intelligence
Regulatory Intelligence is a proactive, connected, and comprehensive solution that tracks and analyses regulatory changes within ~2,000 regulatory bodies and rulebooks for more than 20 countries. It enables banking, financial services, and insurance (BFSI) sectors to manage exposure to operational, regulatory, and compliance risk.
About Oden
Oden State Rules and Regulations (SR&R), Oden Policy Terminator/Sentry PT, and OdenTrack provide repositories and automated solutions for complying with state rules and regulations on the provisioning of Personal and Business Insurance in the US.

View original content:https://www.prnewswire.co.uk/news-releases/cube-acquires-global-regulatory-intelligence-businesses-from-thomson-reuters-302147604.html

Artificial Intelligence

Cayman Enterprise City Publishes Socio-Economic Impact Assessment by Economist and Leading Advisor on the Caribbean, Marla Dukharan

Published

13 hours ago

May 16, 2024

CISION (PR Newswire)

The Impact of Cayman Enterprise City’s Socio-Economic Development Project Nears USD $1 Billion
GRAND CAYMAN, Cayman Islands, May 16, 2024 /PRNewswire/ — Cayman Enterprise City (CEC) has released a Socio-Economic Impact Assessment by Marla Dukharan. The report illustrates that CEC is increasing its impact by supporting higher earnings for Caymanians and is driving a shift towards a knowledge-based economy by focusing on high productivity sectors. The release by Dukharan reads, “Caymanian resourcefulness and private sector-led innovation have been the driving force behind the islands’ outstanding socio-economic success. Cayman Enterprise City underpins the next generation of Cayman innovation and dynamism.”

With an economic impact of USD $130 million in 2023, contributing just under USD $1 billion to the local economic activity in 12 years since inception, “CEC is helping the nation to diversify economically, in terms of sectors and jobs, ensuring locals have economic and employment opportunities that match the nation’s progress,” the report reads.
The CEC socio-economic development project is now home to 352 Special Economic Zones Companies (SEZCos), many of which are globally recognised institutions led by top executives and industry experts. “CEC member companies are providing high-value employment with salaries exceeding those typically found outside of the special economic zone,” said Charlie Kirkconnell, Chief Executive Officer at CEC. “The CEC community is fully invested in Cayman and the report illustrates that the CEC socio-economic development project is making a very significant impact on Cayman’s economy and community.”
“As CEC continues to grow, it continues to create significant employment and entrepreneurial opportunities for Caymanians and we encourage anyone that might be interested in finding out how they might get involved, whether as a member of the community and/or as a volunteer in our Enterprise Cayman non-profit organisation (NPO).”
77% of Caymanian-held jobs at CEC member companies, are in sectors with high social returns and increasing global demand. “By putting skills first and prioritizing learning, CEC is enabling new industries to take root,” the release by Dukharan reads.
CEC, through its Enterprise Cayman NPO, is a first-mover in private sector-facilitated education and training in the Caribbean, making it a leading force to boost youth participation in the economy. By offering training in specialised skills, Enterprise Cayman is helping to close the gap in higher education and earnings for Caymanians. “Through Enterprise Cayman we’ve set out to strategically support meaningful employment and entrepreneurial opportunities for Caymanians, by providing internship and mentorship opportunities, by hosting skill-building and career focused training, and by providing invaluable networking and community engagement opportunities,” said Kirkconnell.
In 2023 individuals took advantage of 4,226 opportunities to participate in education, training, and career development events and, since launching entrepreneurial programming in 2021, Enterprise Cayman has worked with 41 new Cayman-born business ventures. “We’re helping to develop a local talent pool that meets the demand of Cayman’s growing digital innovation and technology sectors while, in parallel, offering exciting opportunities for individuals to launch new business ventures within an innovative business environment,” said Kirkconnell.
With CEC’s new campus and state-of-the-art facilities, Signal House, the project “holds the promise of deep, continued economic impact,” the report concludes.
To access CEC’s economic impact assessments and Enterprise Cayman’s annual reports please visit https://www.enterprisecayman.ky/reports. For more information on how to get involved and for upcoming programmes and events visit www.enterprisecayman.ky.
Website: www.caymanenterprisecity.com LinkedIn: @CaymanEnterpriseCityTwitter: @CEC_CaymanInstagram: @CaymanEnterpriseCityFacebook: @CaymanEnterpriseCityYouTube: @ceccayman
About Cayman Enterprise City
Cayman Enterprise City (CEC) is an award-winning development project which consists of three special economic zones (SEZs) focused on attracting knowledge-based and specialised-services businesses to set up a genuine physical presence in the Cayman Islands. The zones included within CEC are Cayman Tech City, Cayman Commodities & Derivatives Centre, and Cayman Maritime & Aviation City. With a dedicated Government Authority, licensing fee concessions and guaranteed fast-track processes, CEC enables international companies to quickly and efficiently establish a Cayman Islands office, which in turn enables them to generate active business income within a tax neutral environment.
About Enterprise Cayman
Enterprise Cayman is a non-profit organisation (NPO) powered by Cayman Enterprise City in partnership with Cayman Islands’ special economic zone companies (SEZCos). The organisation, which applies the Theory of Change (TOC) methodology, provides Caymanians and residents with access to high-quality learning experiences and opportunities to develop and launch new business ventures, to pursue careers within the technology and innovation sectors, and to join a dynamic network of industry professionals. Let’s grow the next generation of Caymanian innovators and entrepreneurs with Enterprise Cayman!
Logo: https://mma.prnewswire.com/media/1317764/2860789/Cayman_Enterprise_City_Logo.jpg
FOR MORE INFORMATION:Contact: Kaitlyn Elphinstone Email: [email protected]

View original content:https://www.prnewswire.co.uk/news-releases/cayman-enterprise-city-publishes-socio-economic-impact-assessment-by-economist-and-leading-advisor-on-the-caribbean-marla-dukharan-302148206.html

Artificial Intelligence

Strava Unveils New Chapter of Accelerated Product Development at Brand’s Flagship Event

Published

13 hours ago

May 16, 2024

CISION (PR Newswire)

The Company introduces increased product velocity, leveraging advancements in Artificial Intelligence, in service of its vision of a world connected through movement
LOS ANGELES, May 16, 2024 /PRNewswire/ — Strava, the leading digital community for active people with more than 125 million athletes, today showcased its latest initiatives and product developments at its annual event, Camp Strava. With the theme of Progress, Together company leaders announced how the platform will empower its global community to make progress in the way they explore, move, and connect on Strava.

“Strava is gaining momentum to realize our vision of a world connected through movement,” said Michael Martin, chief executive officer of Strava. “We are focused on two fundamental shifts to accelerate how we deliver value to 125 million people globally– building for women and leveraging Artificial Intelligence – which will unlock new community-and-partner-powered experiences across the platform.”
A New Era of Product VelocityStrava, with new leaders at the helm, is ushering in its next era of product velocity. The company listened closely to feedback from its global community and announced three of the most requested features coming to the platform by the end of the year.
The first of these updates, AI-enabled Leaderboard Integrity, will harness machine learning to automatically flag irregular, improbable, or impossible activities recorded to the platform. Trained by millions of activities, this feature allows all users on Strava to play fair and have more fun.
Additionally, the company announced a new Family Plan Subscription, the sister of the company’s Student Plan. With Family Plan, it’s easier to make a fitness commitment with your community by sharing an annual subscription with up to three other people – friends, family, or fitness family. Launching in select countries this summer, with plans to roll out globally by the end of the year, Strava’s newest annual subscription option offers the best value for groups (up to four), with a discount off the regular subscription price for each member.
Strava also implemented an updated design system, an initiative that is integral in driving a heightened pace of product innovation at the company. Through this work, Strava announced the launch of one of the company’s most requested features, Dark mode. Dark mode will improve the in-app experience for all users, reducing eye strain and improving accessibility while they record activity or scroll through the feed. Athletes can expect a rollout later this summer with options to keep their mobile settings always dark, always light, or match their device settings.
Company leaders highlighted several other features and updates to current products like Flyover, with its next iteration offering an overlay with activity stats and off-platform sharing capabilities. The overlay is available today for Strava subscribers and an off-platform sharing option will be released later this year.
Build for Her, Build for ManyStudies show that women of all ages participate in sports at a far lower rate than men, and overall, despite wanting to be active, find less time to dedicate to an active lifestyle. As the company continues on its mission to motivate people to live their best active lives, building for women on the platform will ultimately serve everyone in the Strava community. Several new features and initiatives were announced as a part of this strategic focus, which includes:
Night Heatmaps: Night Heatmaps show only activities between sundown and sunrise – so athletes can get an idea of which roads, trails, and paths are well-trafficked after hours. Since Night Heatmaps filter for after-hours routes, it can be a helpful tool for female athletes training before sunrise and after sunset.Quick Edit: For active women, having control over what is shared with the Strava community that cheers them on – like what time a run is logged – is important. Quick Edit makes it easier to make the most common edits – like activity name, and privacy settings so you can hide your start time, your map, or other workout stats.Strive for More®: The company announced a new phase of its Strive for More® initiative, created in 2022 to promote and support women in movement and sport. Today, Strava unveiled an official partnership with media company TOGETHXR to encourage more women to watch – and play – women’s sports. As part of the partnership, Strava will also donate $100,000 to the Alex Morgan Foundation, started by co-founder of TOGETHXR, Alex Morgan, to support their mission to help girls and women find confident paths forward in sports and life.Athlete IntelligenceToday, Strava announced the start of an accelerated product roadmap, outlining how Strava will implement the latest technological enhancements in AI and machine learning, to transform the athlete experience.
One key advancement to the platform includes the company’s latest development, Athlete Intelligence. Strava is introducing its beta AI-powered feature which turns each subscriber’s training data into an easily digestible summary that contextualizes their accomplishments and fitness goals. Unlike other AI-powered training services, Strava connects with thousands of devices, wearables, and fitness apps, so an athlete’s insights can consider their entire fitness story across multiple sports and modalities.
The features shared at Camp Strava will be released on a rolling basis through the end of the year. To view the full list of product releases and further details, visit www.press.strava.com.
For more information on Strava, to create a free account, or to start a free subscription trial visit www.strava.com.
About Strava Strava is the leading digital community for active people with more than 125 million athletes, in more than 190 countries. The platform offers a holistic view of your active lifestyle, no matter where you live, which sport you love and/or what device you use. Everyone belongs on Strava when they are pursuing an active life. Join the community, find motivation and discover new experiences with a Strava subscription.
Visit www.strava.com for more information and connect with Strava on Instagram, Twitter, Facebook, YouTube and LinkedIn.
Media Contact: [email protected]

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View original content:https://www.prnewswire.co.uk/news-releases/strava-unveils-new-chapter-of-accelerated-product-development-at-brands-flagship-event-302147068.html