Earnings call · Jun 2026 (H1 FY26)

Yunji H1 FY26 earnings call YJ

Aug 20, 2026 Source

Executive summary

Yunji H1 FY26 — Strategic Shift to Private Label Narrows Losses Amidst Revenue Decline

Yunji Inc. navigated a challenging market in H1 FY26 by proactively optimizing its merchandise mix towards high-margin private label and organic health products. This strategic shift resulted in a significant revenue decline but successfully narrowed net losses and maintained resilient gross margins, reinforcing the company's long-term profitability path through enhanced user experience and cost discipline.

Highlights

Net loss for the first half narrowed to RMB 72.4 million, a substantial improvement compared with the same period last year.
Gross margin remained resilient at approximately 41%.
Private label products accounted for 56% of total sales, increasingly becoming the core driver of revenue and higher margins.
Traceability events drove strong sales conversion, with Baiyueshan product sales up 128% year-over-year and 146% compared to H2 2025.

Concerns

Total revenue for the first half was RMB 96.3 million, down from RMB 158.3 million in the prior period.
The market environment remained challenging in the first half of 2026.
Softer consumer spending and the broader macro environment in China impacted revenues.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Self-operating merchandise Self-operating merchandise now accounts for approximately 70% of the total sales, of which private label products accounted for 56%. % of total sales: 70%	—	—	—	—
Private label products Private label products with higher margins are increasingly becoming the core [indiscernible] our revenue. % of total sales (of self-operating merchandise): 56%	—	—	—	higher margins
Beauty segment Beauty segment sales broadly stable compared with the same period last year. [indiscernible] skin care launched in H2 2025 achieved 29% sequential sales growth in H1 2026. [indiscernible] skin care sequential sales growth: 29% (H1 2026 vs H2 2025)	—	broadly stable	—	—

Risks & headwinds

Challenging market environment first half of 2026

Total revenue for the first half was RMB 96.3 million compared with RMB 158.3 million in the first period last year.

Mitigation:proactive approach to optimizing our structure and improving quality and efficiency; continued discipline in cost management and operational efficiency.

Softer consumer spending and broader macro environment in China first half of 2026

Revenues from sales of merchandise were RMB 2.4 million, and the revenues from our marketplace business were RMB 13.7 million. The change in our total revenues for the period was primarily driven by softer consumer spending and need a broader macro environment in China.

Mitigation:strategic alignment with organic house living and proactive merchandise mix optimization towards private label and organic health.

What to watch next

Margin improvement from high-margin products

H2 FY26

Current Gross margin 41%, net loss narrowed to RMB 72.4M

Target Continued margin improvement

Why it matters

This is central to the company's strategy to balance growth and profitability.

Looking ahead, we will continue to refine our product metrics, expand our food managing homology offering and [indiscernible] more resources into high margin, high repurchase items to support continued margin improvement.

2 min read 6 chapters

Detailed narrative

Strategic Repositioning & Merchandise Mix Optimization

Yunji proactively optimized its merchandise mix, discontinuing relationships with third-party merchants not meeting enhanced product standards. This led to a near-term revenue impact but strengthened the merchandise mix. Self-operating merchandise now accounts for approximately 70% of total sales, with private label products making up 56%, driving higher margins and becoming a core revenue component.

Product Strategy & Organic Health Ecosystem

The company continues to build out its organic health, organic food, and beauty and skincare offerings. A focus on food managing homology products, particularly for the Chinese wellness and health market, has shown strong potential, exemplified by the rapid sales growth of [indiscernible] tea launched in Q1 2025. The organic solace segment integrates organic philosophy into daily consumption occasions like breakfast, establishing a high-frequency customer acquisition channel.

Beauty Segment Performance

The Beauty segment maintained broadly stable sales year-over-year, aligning with consumer demand for high-value, affordable products. A key product, [indiscernible] skin care, launched in H2 2025, achieved 29% sequential sales growth in H1 2026, demonstrating positive consumer feedback.

Supply Chain Traceability & Customer Loyalty

Yunji emphasizes end-to-end supply chain traceability as a core competitive advantage, strengthening user trust and repurchase conversion. In H1 2026, approximately 30 traceability events were conducted, driving strong sales. For instance, the Baiyueshan product's sales increased 128% year-over-year and 146% compared to H2 2025 following a traceability event.

Cost Management & Operational Efficiency

The company maintained strict cost discipline, resulting in a 31.9% decrease in total cost of revenues and a 38.8% reduction in total operating expenses. This was driven by lower merchandise sales, reduced logistics costs, staffing structure refinement, and decreased member management fees and business promotion expenses, contributing to the significant narrowing of net losses.

Financial Position and Outlook

Despite revenue pressure from a softer macro environment, Yunji made progress on cost control and narrowed its loss. The company ended H1 2026 with RMB 242.1 million in cash and cash equivalents, maintaining sufficient liquidity. Management remains focused on improving operating margin and balancing growth with profitability for long-term sustainable development.

AI-generated summary of the company's earnings call. Not investment advice.