Shanglue Xiao; Executive Chairman of the Board, Chief Executive Officer; Yunji Inc
Yeqing Cui; Senior Financial Director; Yunji Inc
Megan Wang
Operator
Good morning, and good evening, ladies and gentlemen. Thank you for standing by, and welcome to Yunji’s fourth-quarter 2024 earnings conference call. With us today are Mr. Shanglue Xiao, Chairman and Chief Executive Officer; along with Mr. Yeqing Cui, Senior Financial Director.
As a reminder, this conference call is being recorded. Before we start, please note that this call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on the company’s current expectations and current market operating conditions and relate to events that involve known or unknown risks and uncertainties or other factors of Yunji and its industry.
These forward-looking statements can be identified by the terminologies such as will, expect, anticipate, continue, and other similar expressions. For a detailed discussion of these risks and uncertainties, please refer to the company’s related documents filed with US SEC.
Any forward-looking statements that the company makes on this call are based on assumptions as of today and are expressly qualified in the entirety by the cautionary statements, risk factors and details of the filings with the SEC. The company does not undertake any obligation to update these statements, except as required by applicable law. With that, I would now like to turn the call over to Mr. Shanglue Xiao, Chairman and Chief Executive Officer of Yunji. Please go ahead, sir.
Shanglue Xiao
(interpreted) Hello, everyone. Welcome to Yunji’s fourth-quarter 2024 earnings call.
Looking back on to our operations over the past year, while focusing on the future, we continue to firmly position organic health as the key strategic objectives for our future development. In 2024, our overall gross margin improved to 49.4% while our user repurchase rate maintained a strong 71.9%. Behind these numbers lies the trust our consumers have place in us through their votes healthy living.
But more important than numbers is our complete operational realignment. Over the past year, we have enhanced our organizational structure, improved operational efficiency, and optimized our business layout. These changes will serve as the starting point for us to move forward with greater agility in 2025.
This March, we completed the consolidation of our health business and Yunji finance business. This significant move enable us to better provide a trusted healthy living solutions for our users, strengthening our trust to chain through true traceability, authentic experiences, and general sharing, bringing organic health to millions of households.
Under our commitment to our organic health strategy, our private label organic health products have gradually earned our user trust. For example, our probiotic bolus achieved sales of nearly RMB5 million in the fourth quarter of 2024 and over RMB6 million in the first quarter of 2025. Additionally, our [New Life slimming coffee] launched at the end of March this year immediately gained high consumer recognition, generating sales of over RMB5 million in just half months after its launch.
We will continue to strengthen our private label brand SUYE. Through our efforts in 2024 and the first quarter of this year, we have completed a strategic upgrade from SUYE’s messaging to its visual identity, upholding the brand mission of bringing advanced skincare technology into your daily routine. SUYE is dedicated to offering premium quality products at accessible prices, aspiring to become world class leader in skincare and the proud representative of China’s innovation in beauty. At SUYE, we are building complete product lines around our flagship innovation. SUYE deliver exceptional value and drive growth.
In 2024, we launched our SUYE Pro-Ascen firming series, a premium yet affordable line that generated over RMB20 million in total sales, a testament to the strong demand for high-value skin care solutions. Based on this success, we are expanding this series in 2025 with the launch of SUYE Pro-Ascen firming and lotion, a highly competitive flagship product. This new addition will further enhance the fast growing series, solidifying its position as a go-to choice for customers, seeking advancement in skincare with our premium price tags.
We are thrilled to introduce our new business initiatives for 2025, the The Jianxin Tea Therapy Program, a unique wellness experience designed to deliver exceptional value well promoting holistic health is meticulously crafted 80-minute program, combined tea tasting, traditional Chinese studies, meditation and stretching lessons, offering participants a deeply enriching wellness journey.
During its trial phase, the program achieved remarkable success with 91% over its first 150 participating enthusiasts returning for frequent sessions. Some users even attended the morning tea-courses for 100 consecutive days, highlighting the program’s ability to build a strong user loyalty and engagement. This April, we plan to recruit 1,000 tea enthusiasts to join the program.
On March 20, the Jianxin Tea Therapy Program will officially launch. And by June, we aim to train and onboard 100 skilled tea therapists. By combining high margin approach with an immersive and engaging experience, these initiatives strengthen the appeal of our organic health offerings, while fostering the customer loyalty and satisfaction. This serves as a pivotal step in our evolution from a traditional transaction platform to a dynamic experience ecosystem.
In 2025, Yunji remains committed to its vision as the global leader in organic living, focusing on delivering high-value organic health foods and great advanced skincare products. By leveraging significant cost reductions achieved last year, we will continue optimizing our product line up to create a standout product that offer exceptional value for money.
Our strategy centers on shifting towards high margin, high repurchase rated products to enhance profitability and then achieve breakeven. Beyond product sales, Yunji is evolving into a service experience platform, embracing the promising opportunities of the silver economy.
Our innovative tea therapy wellness courses will serve as the cornerstone for building health-focused communities. This program unites product sales, cultural experiences, and social engagement into a cohesive ecosystem, a tree of life, where every branch nurtures growth and connection.
In the future, we will continue to stimulate product innovation, enhance core competence and create greater social value for Chinese families. With that, I will hand it over to Mr. Cui, our Senior Financial Director to go through the financial results.
