The Yunji Inc (NASDAQ: YJ) share price surged 100.52% after releasing its financial results for the first quarter of 2023 ended on 31 March 2023. The e-commerce company generated revenues worth RMB178.7 million (US$26.0 million), marking a steep decline from the RMB342.6 million generated in a similar period last year.
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The company attributed its lower revenues to its ongoing strategy of refining its product range across all categories and its efforts to optimize the selection of suppliers and merchants, negatively impacting its sales figures over the near term.
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The rally in Yunji shares was primarily driven by the surge in investor interest in the company, as over 8.46 million YJ shares had changed hands at writing.
Yunji’s efforts to optimise its cost structures bore fruit as its total operating expenses dropped 45% to RMB85.3 million ($12.4 million) compared to RMB154.9 million in a similar period last year. In addition, the company’s fulfilment expenses fell by 44.6% to RMB27.1 million ($3.9 million), or 15.2% of total revenues compared to RMB48.9 million in Q1 2022.
The company reported a net loss of RMB22.2 million ($3.2 million) compared to RMB35.3 million in Q1 2023. The lower figure was driven by the continuous decline in the fair value changes of its equity and securities investments.
Mr Shanglue Xiao, Yunji’s Chairman and CEO, said: “The first quarter marked a transitional phase as China reopened, following a challenging year in which we faced numerous obstacles. We took proactive measures to address these challenges through a series of strategic upgrades and realignments. Notably, we recorded a repeat repurchase rate of 80% during the quarter, which demonstrated the loyalty of our users and the strength and popularity of our wide range of featured products. Looking ahead, we will continue to operate flexibly while nimbly adapting and responding to emerging trends as the consumer market recovers. At the same time, we remain committed to developing innovative private-label products to reward our devoted users who have accompanied us on this journey.”
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Yunji share price.
The Yunji share price surged 100.52% to trade at $0.4253, from Thursday’s closing price of $0.2121.
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